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Members of the organization that runs the legendary All Blacks in New Zealand have voted to sell a 12.5 per cent stake in a US private equity firm despite opposition to the strong association of rugby players.
Unions in 26 Pacific rugby provinces voted unanimously on Thursday to support $ 387.5 million ($ 281 million) in New Zealand rugby Silver Lake, A $ 75 billion acquisition company in California, known for its commitment to technology groups.
The contentious decision paved the way for high-stakes negotiations between game administrators and the New Zealand Rugby Players Association. The approval of this is necessary for the private capital transaction to proceed.
The deal, if approved by the association, would start the fight between Silver Lake and one of the world’s most popular sports in the world. CVC Capital Partners At a time when the Covid-19 pandemic has ruined rugby’s revenue.
The Luxembourg CVC already has a minimum participation in the English Premier League, Pro14 club competitions and Six Nations. He has also given talks with South Africa current world champions, about buying a 15-20 percent stake in the country’s commercial arm.
“What you just did was incredibly significant,” Brent Impey, New Zealand Rugby Chair, told the annual body meeting after the vote.
“The game needs to change, and Silver Lake’s capital injections would allow us to re-imagine rugby and invest in the areas of community gaming that they need most, especially teenage and women’s rugby.”
New Zealand rugby has lost $ 34.6 million in 2020 in a $ 55 million drop in revenue caused by the coronavirus pandemic discontinued tools.
Under a draft agreement called “Project Future,” by its proponents, Silver Lake would pay $ 387.5 million for a 12.5 percent stake in a New Zealand rugby company with commercial interests. all black, one of the most popular brands in the world of sports.
The agreement would value New Zealand’s commercial rugby interest at more than $ 3 billion and allocate $ 39 million to stakeholders, including the provincial unions that voted in favor of the deal.
New Zealand Rugby has said the deal will transform the game and provide investment in popular rugby, technology and other initiatives that will grow the sport.
Basically, it would provide more money to retain highly talented local players, who are increasingly being targeted by European and Japanese clubs, according to sponsors of the deal.
The Silver Lake proposal has been controversial. Critics warn of the risk of repeating the mistakes that shook football, where elite clubs tried to establish themselves getaway to the European Super League.
In January, the players ’association told New Zealand Rugby would not accept agreement due to loss of control and threats to the financial viability and cultural value of rugby in New Zealand.
“Because Silver Lake is an Anglo-American private equity firm, there is an inherent risk of actual or perceived cultural deviation,” the letter said, as seen by the Financial Times.
Silver Lake, this one too has a stake At Manchester City football club, he wanted to dispel the fear of players and fans by the fear that he would commercialize the sport too much. He pointed to the structure of the agreement, that the business would still own the majority and be under the control of New Zealand Rugby.
But some mediation sessions between the committee and the players ’association have failed to reach a consensus on Silver Lake’s offer.
Players ’general manager Rob Nichol told FT that mediation efforts have been suspended while the body consults with its members.
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