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£275m Premiership offer on verge of collapse

By Alex Shaw
Clubs owners are yet to agree with each other over the deal (Getty Images)

After the news broke yesterday that CVC Capital Partners had made an offer in the region of £275m for a controlling stake in Premiership Rugby, The Times are reporting that the 13 Premier Rugby Ltd member clubs are not in unanimous agreement as to how to proceed.

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Bruce Craig, who owns Bath, strongly opposes the offer and all PRL members would need to be on board and agree to the offer for it to go ahead, as has previously been agreed in the terms of the co-ownership of PRL.

With a meeting of the club owners set to take place on Tuesday, Craig’s opposition would be enough to prevent the sale to CVC and keep the controlling stake in PRL with the owners of the clubs.

With a net worth of £300m according to The Sunday Times Rich List in 2017 and a willingness to bankroll success and a new stadium for the club, Craig is one of the Premiership owners in a strong position to turn down the offer and retain the current control that the group has over the competition.

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Whilst CVC have reportedly insisted that they will only exert voting control over commercial elements, something which has seen most clubs eager to accept the offer, it is still a concern for Craig and, it would be fair to assume, the RFU.

After initial success in 2016 at international level and a new heads of agreement between the RFU and the Premiership clubs, both guaranteeing player release and sufficiently compensating clubs for the loss of players, relations have begun to breakdown once more between the two bodies of English rugby and it is likely that any takeover by CVC would only exacerbate this. The private equity firm would likely look for a higher level of compensation for player release in subsequent negotiations and with the RFU currently facing financial issues, that could prove a stumbling block for the England side’s bid for success in international rugby.

According to the latest report in The Times, the ownership of Bristol Bears could also oppose the deal, having not yet made their position on the offer clear. With Bristol backed by Steve Lansdown, whose fortune is valued at over £1.4b, per that same Rich List report from 2017, they are another club not in need of the immediate injection of funds that the CVC offer would provide.

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Either Craig will need to be persuaded of the benefits of the offer between now and Tuesday, or CVC will have to amend their offer, either increasing their financial investment and thus the valuation of the Premiership – which they currently value at £550m – or withdraw their demands for a controlling stake, something which it seems they are unlikely to do.

Failing either of those actions, it looks as though the deal could be dead in the water come Tuesday.

 

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Jon 7 hours ago
Jake White: Are modern rugby players actually better?

This is the problem with conservative mindsets and phycology, and homogenous sports, everybody wants to be the same, use the i-win template. Athlete wise everyone has to have muscles and work at the gym to make themselves more likely to hold on that one tackle. Do those players even wonder if they are now more likely to be tackled by that player as a result of there “work”? Really though, too many questions, Jake. Is it better Jake? Yes, because you still have that rugby of ole that you talk about. Is it at the highest International level anymore? No, but you go to your club or checkout your representative side and still engage with that ‘beautiful game’. Could you also have a bit of that at the top if coaches encouraged there team to play and incentivized players like Damian McKenzie and Ange Capuozzo? Of course we could. Sadly Rugby doesn’t, or didn’t, really know what direction to go when professionalism came. Things like the state of northern pitches didn’t help. Over the last two or three decades I feel like I’ve been fortunate to have all that Jake wants. There was International quality Super Rugby to adore, then the next level below I could watch club mates, pulling 9 to 5s, take on the countries best in representative rugby. Rugby played with flair and not too much riding on the consequences. It was beautiful. That largely still exists today, but with the world of rugby not quite getting things right, the picture is now being painted in NZ that that level of rugby is not required in the “pathway” to Super Rugby or All Black rugby. You might wonder if NZR is right and the pathway shouldn’t include the ‘amateur’, but let me tell you, even though the NPC might be made up of people still having to pull 9-5s, we know these people still have dreams to get out of that, and aren’t likely to give them. They will be lost. That will put a real strain on the concept of whether “visceral thrill, derring-do and joyful abandon” type rugby will remain under the professional level here in NZ. I think at some point that can be eroded as well. If only wanting the best athlete’s at the top level wasn’t enough to lose that, shutting off the next group, or level, or rugby players from easy access to express and showcase themselves certainly will. That all comes back around to the same question of professionalism in rugby and whether it got things right, and rugby is better now. Maybe the answer is turning into a “no”?

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j
john 9 hours ago
Will the Crusaders' decline spark a slow death for New Zealand rugby?

But here in Australia we were told Penney was another gun kiwi coach, for the Tahs…….and yet again it turned out the kiwi coach was completely useless. Another con job on Australian rugby. As was Robbie Deans, as was Dave Rennie. Both coaches dumped from NZ and promoted to Australia as our saviour. And the Tahs lap them up knowing they are second rate and knowing that under pressure when their short comings are exposed in Australia as well, that they will fall in below the largest most powerful province and choose second rate Tah players to save their jobs. As they do and exactly as Joe Schmidt will do. Gauranteed. Schmidt was dumped by NZ too. That’s why he went overseas. That why kiwi coaches take jobs in Australia, to try and prove they are not as bad as NZ thought they were. Then when they get found out they try and ingratiate themselves to NZ again by dragging Australian teams down with ridiculous selections and game plans. NZ rugby’s biggest problem is that it can’t yet transition from MCaw Cheatism. They just don’t know how to try and win on your merits. It is still always a contest to see how much cheating you can get away with. Without a cheating genius like McCaw, they are struggling. This I think is why my wise old mate in NZ thinks Robertson will struggle. The Crusaders are the nursery of McCaw Cheatism. Sean Fitzpatrick was probably the father of it. Robertson doesn’t know anything else but other countries have worked it out.

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A
Adrian 11 hours ago
Will the Crusaders' decline spark a slow death for New Zealand rugby?

Thanks Nick The loss of players to OS, injury and retirement is certainly not helping the Crusaders. Ditto the coach. IMO Penny is there to hold the fort and cop the flak until new players and a new coach come through,…and that's understood and accepted by Penny and the Crusaders hierarchy. I think though that what is happening with the Crusaders is an indicator of what is happening with the other NZ SRP teams…..and the other SRP teams for that matter. Not enough money. The money has come via the SR competition and it’s not there anymore. It's in France, Japan and England. Unless or until something is done to make SR more SELLABLE to the NZ/Australia Rugby market AND the world rugby market the $s to keep both the very best players and the next rung down won't be there. They will play away from NZ more and more. I think though that NZ will continue to produce the players and the coaches of sufficient strength for NZ to have the capacity to stay at the top. Whether they do stay at the top as an international team will depend upon whether the money flowing to SRP is somehow restored, or NZ teams play in the Japan comp, or NZ opts to pick from anywhere. As a follower of many sports I’d have to say that the organisation and promotion of Super Rugby has been for the last 20 years closest to the worst I’ve ever seen. This hasn't necessarily been caused by NZ, but it’s happened. Perhaps it can be fixed, perhaps not. The Crusaders are I think a symptom of this, not the cause

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