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Premiership boss leaving for CVC and what it could mean for the league

Gallagher Premiership trophy. (Photo by David Rogers/Getty Images for Gallagher)

Since the news broke that CVC Capital Partners would be investing over £200m for a 27% stake in Premiership Rugby, rumours have been rife about what it might mean for the competition.

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CVC’s track record in sport is one of commercial success, as exhibited by their involvement with Formula 1 most recently, but has also caused its fair share of controversy, not least for allegations centred around former F1 chief executive Bernie Ecclestone and concerns over the sporting value of the product they managed.

It seems as if the first domino to fall in CVC’s involvement in the Premiership is that of CEO Mark McCafferty, who will be leaving his role at the end of the season and is set to become an advisor to CVC. The man tasked with succeeding McCafferty is Darren Childs, the former CEO of UKTV, Britain’s biggest multi-channel broadcaster.

Ian Ritchie, Chairman of Premiership Rugby, said, “Mark has played a pivotal leadership role in the development of Premiership Rugby since 2005. The growth of the Club game in England and Europe during that time has been tremendous.”

He added, “As the game evolves under new ownership, we are excited about the expertise and insight that Darren will bring from his experience leading fast-growing media businesses. The Board looks forward to working with Darren to further develop the Premiership Rugby brand, product, digital and media execution.”

Childs has an extensive background in the media industry, not only enjoying significant success in his current role with UKTV, which includes increasing its revenue by 66% and almost tripling the group’s profits, but he has also worked with media giants such as MTV, HBO and the BBC. His hiring is clearly aligned with the Premiership’s goals of becoming a more commercially-appealing entity, something which they have cited as one of the key reasons behind their decision to accept the investment from CVC.

Speaking on his new position, Childs said, “I am excited about the challenge that working in a new industry brings, especially one on the cusp of a transformation like rugby. I have always admired the values rugby demonstrates on the pitch and in the community and it will be a fantastic opportunity to work with the clubs and the board to create even more fans of the sport. Premiership Rugby and European Professional Club Rugby are full of thrills and the future will certainly provide many more.”

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McCafferty’s move to CVC should also bring the two bodies into an even closer relationship, as not only will McCafferty work as an advisor to CVC, he will also retain his position representing the clubs on the Professional Game Board. The PGB is made up of representatives from the RFU, Premiership Rugby, the Championship clubs and the Rugby Players’ Association, and is tasked with monitoring and managing all aspects of the professional game in England. He currently sits on the board alongside Ian Ritchie and Bruce Craig, as part of the Premiership’s representation.

By retaining his spot on the PGB, McCafferty brings a direct link to CVC to the group, with the private equity firm having also expressed interest in the RFU and Six Nations in recent months.

Mark McCafferty, outgoing Chief Executive of Premiership Rugby (Photo by Tom Dulat/Getty Images).

McCafferty said, “Gallagher Premiership Rugby has become a brilliant and captivating competition for our fans, as the closeness of this season fully demonstrates, and it does what we believe professional sport should always do – demand excellence, create intense rivalry but mutual respect, and inspire people of all ages to become part of it. I am looking forward to ensuring an effective transition with Darren and to my continued involvement in rugby, working from a new vantage point alongside CVC.”

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During McCafferty’s time as CEO of Premiership Rugby, the competition has vastly increased its revenue from TV deals, negotiated a new title sponsorship with US insurance giants Gallagher, brokered two agreements between the Premiership and the RFU and helped establish the PGB, upon which he now sits.

Formula 1’s profits shot up under CVC’s stewardship and the organisation, which CVC bought a majority stake in for £1.4b, was valued at £8b when they sold up in 2016. For all the commercial value that was added, however, criticism that the product became poorer during that time has been rife over the last few years, not to mention a dramatically falling viewership due to the decision to move the sport of a free-to-air coverage.

Today’s announcement is another step towards a closer working relationship between CVC and the Premiership, something which should excite and concern fans at the same time.

CVC won’t be afraid of cracking some eggs to make an omelette and, as a private equity firm, are in this venture, first and foremost, to make money. The silver lining to this for the Premiership clubs is that their latest financial reports show they are certainly in need of some extra revenue. It seems as if the two entities’ interests are certainly in alignment at this point in time.

Watch: Saracens and Billy Vunipola both issue statements on the player’s recent social media controversy

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J
JW 3 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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