'We we will not grant approval' - Players' union pen shock letter to NZR over multi-million dollar equity sale
The organisation representing New Zealand’s professional rugby players have sent an explosive letter kiboshing a proposed 15 per cent sale of NZR.
Earlier this year an American tech giant – Silver Lake – tabled NZ$465m for 15 per cent of the money-generating side of New Zealand Rugby in the latest global private-equity play to hit the sport.
However, the NZRPA – who represent many of the countries highest profile All Blacks – have hit by back at the deal, penning a letter to the NZR in which they say they will not sanction such a move at the current time. The New Zealand Herald released the letter this weekend, which represents the views of board members which include current All Blacks Sam Cane, Sam Whitelock, Aaron Smith and Dane Coles.
The eight-page letter reads: “We had expected we would wait until the process had run its course and NZR had presented a full and complete proposal to NZRPA before assessing the proposal and granting approval or not. However, on the basis of information known to NZRPA today and the analysis and assessment of that information, we have concluded that we will not grant approval for the restructure and sale proposed by NZR and believe we should communicate that conclusion to you now.
“The decision to not grant approval to the restructure and sale of a minority interest in New Zealand Rugby has been arrived at after careful consideration by the board of NZRPA. The Board of NZRPA consists of 3 independent directors, one executive director and 10 player representatives, drawn from the All Blacks, the Black Ferns, the All Black Sevens, the Black Fern Sevens and the Super Rugby franchises.
“The remainder of this letter sets out our reasons for not approving the NZR proposal and outlines an alternative approach we believe NZR should investigate and pursue.
The NZRPA point out that they believe there is no need to sell 15 per cent of it capital to raise funds and that ceding veto rights to Silver Lake is not acceptable.
In one of the letter’s strongest sections, the players’ union outline how the deal could hurt the relationship between rugby union and the wider New Zealand public; titled: “Loss of the special and distinctive relationship between New Zealanders and New Zealand’s representative rugby teams.’
“The relationship between New Zealanders and the All Blacks, the Black Ferns and other representative rugby teams is difficult to put into words, but we all understand it to be a special bond related to New Zealand pride and identity.
“New Zealand’s rugby players play for themselves, their family and their country with a commitment to success that is demanded by history and required by legacy. New Zealand’s rugby fans understand this commitment and see in it the essence of what, from one perspective, it means to be a New Zealander.
“This, above all, is what NZR is selling and Silver Lake are buying. 129 years of history and talent and results that record extraordinary success, achieved only because of who we are and what rugby means to us. No one else has done it. No one else could have done it. We believe there is a risk that this special bond and the nature of what rugby means to New Zealanders, players and spectators alike, is at risk in the proposed transaction.
“In addition, as you know, Maori and Pacifica culture is woven deeply through the fabric of New Zealand rugby’s brands, reputation and revenue generating assets. We know many players are, and believe many other New Zealanders would be, uncomfortable with the thought that NZR was selling income-generating assets that relied, in part, upon cultural practises and understandings that they consider not for sale under any circumstances. There is an inherent risk of real or perceived cultural misappropriation given Silver Lake is an Anglo-American private equity firm.”
The NZRPA also believes the deal will lead to an inevitable financial conflict of interest, citing World Rugby’s failed 6 billion pound deal with a Swiss marketing firm, which they say was a result of CVC’s deals with various unions and leagues.
“It is clear to us the establishment of an unbreakable partnership with one private equity firm will place constraints on the ability of NZR to maximise value independent of that private equity partner in the future. NZR’s future options will be materially reduced by committing itself to deal only in circumstances that satisfy Silver Lake as well as NZR. It is therefore likely NZR will forego future value as a result of its commitment to Silver Lake.
“As an example of value foregone because of prior alignment to a private equity party we give the failure of the Nations Championship.
“Last year, World Rugby was forced to drop a £6bn deal with In front, a Swiss marketing agency, to create a new annual tournament dubbed the Nations Championship. The concept failed partly because it would have forced the countries that compete in the Six Nations to abandon their deal with CVC.”
“We accept that many other issues needed to be resolved for the Nations Championship to proceed but the conflict of interest between the national rugby unions and CVC was clearly a contributing factor.”
The New Zealand Rugby Players’ Association was founded by New Zealand’s professional rugby players as their independent representative body in 1999.
Comments on RugbyPass
No Islam says it must rule where it stands Thus it is to be deleted from this planet Earth
18 Go to commentsThis team probably does not beat the ABs sadly Not sure if BPA will be available given his signing for Force but has to enter consideration. Very strong possibility of getting schooled by the AB props. Advantage AB. Rodda/Skelton would be a tasty locking combination - would love to see how they get on. Advantage Wallabies. Backrow a risk of getting out hustled and outmuscled by ABs. Will be interesting to see if the Blues feast on the Reds this weekend the way they did the Brumbies we are in big trouble at the breakdown. Great energy, running and defence but goalkicking/general kicking/passing quality in the halves bothers me enormously. SA may have won the World Cup for a lot of the tournament without a recognised goalkicker but Pollard in the final made a difference IMO. Injuries and retirements leave AB stocks a bit lighter but still stronger. 12 and 13 ABs shade it (Barret > Paisami, Ione = Ikitau, arguably) Interesting clash of styles on the wings - Corey Toole running around Caleb Clark and Caleb running over the top of Toole. Reece vs Koro probably the reverse. Pretty even IMO. 15s Kelleway = Love See advantage to ABs man for man, but we are not obviously getting slaughtered anywhere which makes a nice change. Think talent wise we are pretty even and if our cohesion and teamwork is better than the ABs then its just about doable.
11 Go to commentsCompletely agree. More friday night games would be a hit. RFU to make sure every club has a floodlit pitch. Club opens again Saturday to welcome touch / tag. Minis and youths on Sunday
3 Go to comments1.97m and 105Kg? Proportionately, probably skinnier than me at 1.82 and 82kilos. He won’t survive against the big guys at that weight.
55 Go to commentsThe value he brought to the crusaders as an assistant was equal to what he got out of being there. He reflected not only on the team culture but also the credit he attributed to the rugby community. Such experience shouldn’t be overlooked.
5 Go to commentsGood luck Aussie
11 Go to commentssmith at 9 / mounga 10 / laumape 12 / fainganuku 14
54 Go to commentsBar the injuries, it’s pretty much their top team …
2 Go to commentsDon’t disagree with much of this but it appears you forgot Rodda and Beale, who started at the Force on the weekend.
11 Go to commentsExcept for the injured Zach Gallagher this would be Saders best forward pack for the season. Blackadder needs to stay at 7, for all of Christies tackling he is not dominant and offers very little else. McNicholfullback is maybe a good option, Fihaki not really upto it, there was a reason Burke played there last year. Maybe Havilli to 2nd five McLeod to wing. Need a strong winger on 1 side to compliment Reece
1 Go to commentsTo me TJ is clearly the best 9 in the competition right now but he's also a proven player off the bench, there's few playmaking players who can come off the bench as calm and settled as he is, Beauden can, TJ can and I doubt any of the scrumhalves in contention can, if they want to experiment with new 9s I want him on the bench ready to step in if they crumble under the pressure. The Boks put their best front row on the bench, I'd like to see us take a similar approach, the Hurricanes have been doing similar things with players like Kirifi.
54 Go to commentsROG has better chance to win a WC if he starts training and make himself eligible as a player. He won’t make the Ireland squad but I reckon he may get close with Namibia (needs to improve his Afrikaans) or Portugal. Both sides had 1000:1 odds to win the RWC in 2023 which is an improvement on ROG’s odds of winning a RWC as a coach. Unlike Top 14 teams, national teams can’t go shopping and buy the best players - you work with the available talent pool and turn them into world beaters.
5 Go to commentsthat backline nope that backline is terrible why would you have sevu Reece when he’s not even top 5 wingers in the comp why have Blackadder when there’s better players no Scott barret isn’t an automatic the guy is more of a liability than anything why have him there when you have samipeni who’s far far better
54 Go to commentsAh, good to find you Nick. Agree with everything about Cale. So much to like about his game
55 Go to commentsNot too bad. Questions at 6, lock and HB for me. The ABs will be a lot stronger once Jordan and Roigard return. Also, work needs to be made to secure Frizzell back for next season and maybe also Mo’unga; they’re just wasting time playing in japan
54 Go to commentsOn the title, i wonder for many of those people it is a case something like a belief in working smarter, not harder?
1 Go to commentsForget Sotutu. One of those whose top level is Super Rugby. Id take a punt on Wallace Sititi Finau ahead of Glass body Blackadder.
54 Go to commentsI’m a pensioner so I've been around a bit. My opinion of SBW is he is an elite athlete and a great New Zealander and roll model. He has been to the top and knows what he's talking about. To all the negative comments regarding SBW the typical New Zealand way, cut that tall poppy down.
18 Go to commentsI'm not listening to a guy moralise over others when this is the guy who walked out mid season on Canterbury RLFC when he had a contract with them, what a hypocrite. All the Kiwis sticking up for this unprincipled individual because they can't accept justified criticism, he has zero credibility or integrity. Those praising him are a joke.
18 Go to commentsI’d put Finau at 6 instead of Blackadder but that’s the only change I’d make. Can’t wait to see who Razor picks.
54 Go to comments