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Report: New Zealand Rugby for sale in multi-million dollar deal

(Photo by Mark Kolbe/Getty Images)

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.

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“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.

“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.

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J
JW 10 minutes ago
‘The problem with this year’s Champions Cup? Too many English clubs’

Well I was mainly referring to my thinking about the split, which was essentially each /3 rounded up, but reliant on WCs to add buffer.


You may have been going for just a 16 team league ranking cup?


But yes, those were just ideas for how to select WCs, all very arbitrary but I think more interesting in ways than just going down a list (say like fl's) of who is next in line. Indeed in my reply to you I hinted at say the 'URC' WC spot actually being given to the Ireland pool and taken away from the Welsh pool.


It's easy to think that is excluding, and making it even harder on, a poor performing country, but this is all in context of a 18 or 20 team comp where URC (at least to those teams in the URC) got 6 places, which Wales has one side lingering around, and you'd expect should make. Imagine the spice in that 6N game with Italy, or any other of the URC members though! Everyone talks about SA joining the 6N, so not sure it will be a problem, but it would be a fairly minor one imo.


But that's a structure of the leagues were instead of thinking how to get in at the top, I started from the bottom and thought that it best those teams doing qualify for anything. Then I thought the two comps should be identical in structure. So that's were an even split comes in with creating numbers, and the 'UEFA' model you suggest using in some manner, I thought could be used for the WC's (5 in my 20 team comp) instead of those ideas of mine you pointed out.


I see Jones has waded in like his normal self when it comes to SH teams. One thing I really like about his idea is the name change to the two competitions, to Cup and Shield. Oh, and home and away matches.

41 Go to comments
f
fl 1 hour ago
‘The problem with this year’s Champions Cup? Too many English clubs’

"Yes I was the one who suggested to use a UEFA style point. And I guessed, that based on the last 5 years we should start with 6 top14, 6 URC and 4 Prem."

Yes I am aware that you suggested it, but you then went on to say that we should initially start with a balance that clearly wasn't derived from that system. I'm not a mind reader, so how was I to work out that you'd arrived at that balance by dint of completely having failed to remember the history of the competition.


"Again, I was the one suggesting that, but you didn't like the outcome of that."

I have no issues with the outcome of that, I had an issue with a completely random allocation of teams that you plucked out of thin air.

Interestingly its you who now seem to be renouncing the UEFA style points system, because you don't like the outcome of reducing URC representation.


"4 teams for Top14, URC and Prem, 3 teams for other leagues and the last winner, what do you think?"

What about 4 each + 4 to the best performing teams in last years competition not to have otherwise qualified? Or what about a UEFA style system where places are allocated to leagues on the basis of their performance in previous years' competitions?

There's no point including Black Lion if they're just going to get whitewashed every year, which I think would be a possibility. At most I'd support 1 team from the Rugby Europe Super Cup, or the Russian Championship being included. Maybe the best placed non-Israeli team and the Russian winners could play off every year for the spot? But honestly I think its best if they stay limited to the Challenge Cup for now.

41 Go to comments
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