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Report: New Zealand Rugby for sale in multi-million dollar deal
New Zealand Rugby’s negotiations with US private equity firm Silver Lake are advancing, with reports suggesting a minority stake of up to 15 per cent could soon be sold off.
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The Herald first revealed NZ Rugby’s landmark negotiations with Silver Lake last May.
With the realisation that NZ Rugby’s financial model could no longer rely solely on the All Blacks to fund the game, a high ranking NZ Rugby source explained how a private investment could be carried out.
“You would set up a subsidiary company of NZ Rugby and get investment into that company in some form of partnership,” the source told the Herald in May. “You put commercial assets into that company — whether that’s in combination with Sanzaar partners and something like Super Rugby in its reincarnated form, or the Rugby Championship.
“We’ve got to get revenue streams and we can’t afford to fund those ourselves.
“Certainly at the Super Rugby level, our financial model there is under huge pressure, both the competition and our teams. We’re grossly under-capitalised. That’s a critical area.”
Following the Herald’s report, which stated negotiations with Silver Lake and other private investment firms would resume once Super Rugby’s future had a firm blueprint, Sky News UK now suggests a 15 per cent stake could be sold.
NZ Rugby’s entity has been tentatively valued at US$2 billion ($2.79b NZD).
The development comes as Luxembourg-based CVC Capital Partners prepares to finalise a £365m agreement for 14.5 per cent of commercial Six Nations rights, with a five-year deal set to be confirmed later this month.
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In 2018, CVC took a 27 per cent holding in English club rugby’s Premiership.
While Sky News UK reported NZ Rugby’s deal could be completed by the end of the month, the Herald understands it may take up to three months to finalise details.
In an interview with the Herald last November, while revealing a $40 million hit to cash reserves due to the Covid-19 impact, NZ Rugby chief executive Mark Robinson confirmed talks with private investment companies were progressing.
Former Highlanders outside back Josh McKay has been handed a second chance at Super Rugby by the Crusaders ahead of the upcoming Super Rugby Aotearoa campaign. #SuperRugby #SuperRugbyAotearoa #Crusaders https://t.co/1C53a8cioy
— RugbyPass (@RugbyPass) January 12, 2021
“We are open to looking at partners who may invest in New Zealand Rugby,” Robinson said.
“We’re only at the initial stage of that but there’s clearly a lot of work going on around the world on that.
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“It’s only right for us as we look at doing the best possible things for the game and trying to explore all avenues that we investigate something like this.”
Silver Lake is one of the world’s leading technology investors, and its partnership with New Zealand Rugby is likely to focus on an attempt to build its digital and media rights strategy, reflecting a similar approach across City Football Group – the owner of Manchester City – portfolio of footballing interests.
Silver Lake was also part of a consortium which took control of UFC, the Mixed Martial Arts franchise, in 2016.
Comments on RugbyPass
Not sure exactly what went wrong for him at Glasgow but it’s pretty clear he ain’t Franco’s cup of tea. Suspect he would have been better served heading out of Scotland around the same time as Finn, Hoggy and Jonny!
1 Go to commentsBulls disrespected the Northampton supporters and the competition. Decide quickly, fully in or out.
24 Go to commentsI wonder if Parling was ever on England’s radar as a coach? Obviously Borthwick is a great lineout coach, but I do worry he might be taking on too much as both head coach and forwards coach.
1 Go to commentsJason Jenkins has one cap. When Etzebeth was his age he had over 80 caps. Experience matters. He will never amount to what Etzebeth has because he hasn’t been developed as an international player.
2 Go to commentsSays much about the player picking this gig over the easier and bigger rewards offered to him in Japan. Also says a lot about the state sanctioned tax benefits the Irish Revenue offers pro rugby players, with their ten highest earning years subject to an additional 40% tax relief and paid as a lump sum, in cash, at retirement. Certainly helps Leinster line up the financial ducks in a row to fund marquee signings like this!!! No other union anywhere in world rugby benefits from this kind of lucrative financial sponsorship from their government…
5 Go to commentsTrue Jordie could earn a lot more in Japan. But by choosing Leinster he’ll be playing with 1 of the best clubs in the world and can win a champions cup and URC…..
6 Go to commentsThanks for that Marshy, noticed you didn't say who is gonna win it. We know who ain't gonna win it - your Crusaders outfit. They've gone from having arguably the best Super Rugby first five ever, to having a clutch of rookies. Hurricanes all the way!
1 Go to commentsGeez you really have to question the NRLs ability to produce players of quality. Its pathetic. Dont the 25mil in Aus produce enough quality womens players. Sad.
1 Go to commentsBulls fan here, and agree 100% with the conclusion (and little else) of this article. SA sides should absolutely f-off from the champs cup until we get fair scheduling, equal support for travel arrangements and home semis. You know, like all the european teams get.
24 Go to commentsI’m yet to see why Grace would be an ABs contender. He’s pedestrian and lacks the dominance required of a top flight 8.
11 Go to commentsGee my Highlanders were terrible. They have gone backwards since the start of the season. The trouble began when we left Millar behind to prep as the 10 against the Brumbies and he was disconnected from the team that came back from Aussie. We rested Patchell for that game and we blew an avalanche of ball in good attacking positions in the 1st half. Against the Rebels we seem to of gone into a pod system with forwards hanging off from the breakdown leaving Fakatava to secure our ball!
80 Go to commentsPot Kettle, the English and French teams have done it for years.
24 Go to commentsHas virtually played every minute of previous games. Back row of Li Lo Willie , Grace and Blackadder would be the 1. Crusaders issue is a very average 1st 5 who cannot run. Kicking in general play is also below par They need to put Yong Kemara in. He must have so.e talent for them to bring him down from Waikato. Hoehepa would struggle to play in so.e club sided
11 Go to commentsI hope this a good thing making all these changes!
3 Go to commentsThe Hurricanes are good, especially with a decent coach now. However, let’s be real, the Crusaders and Chiefs are clearly a good degree weaker without the players they’ve lost overseas now. The Canes lost one player. It’s also why the aussie teams ‘seem’ to be stronger.
9 Go to commentsOr you could develop your own players instead of constantly taking from the SH competition and weakening it in the process? With all the player and financial resources these unions have compared to SH countries you’d think they could manage that, or is weakening the SH comps and their national sides an added bonus? Probably.
3 Go to commentsNot so fast Aaron, we might need you in black yet lol. God knows he’d be a lot less nerve-racking than hot and (very) cold players like Perofeta. It’s really a shame Reuben Love isn’t playing 10, we’ve got enough 15 options.
4 Go to commentsAnd those from the NH still seem to be puzzled (and delighted) why NZ’s depth isn’t what it once was. Over 600 NZ players overseas, that’s insane. This sort of deal is why Super Rugby coaches have admitted they struggle now to find enough quality to fill out their squads.
6 Go to commentsArticle intéressant ! La question devrait régulièrement se poser pour les jeunes français originaires de Nouvelle-Calédonie, Wallis-et-Futuna et de Polynésie entre la Nouvelle-Zélande et la Métropole… Difficile pour la fédération française de rugby de se positionner : soit le choix est fait de dénicher les jeunes talents et de les faire venir très tôt en Métropole, au risque de les déraciner, soit on prend le risque de se les faire “piller” par les All Blacks qui, telle une araignée, essaye de récupérer tous les talents des îles du Pacifique… À la France de se défendre en développant l’aura du XV de France et des clubs français dans ses collectivités d’Outre-mer !
4 Go to commentsWrong bay. He needs to come to the REAL BAY which is Bay Of Plenty and have a crack at making the Chiefs.
4 Go to comments