Rugby: New Zealand Rugby in talks with private equity firm Silver Lake on a $ 2 billion deal

New Zealand Rugby’s negotiations with US private equity firm Silver Lake are moving forward, with reports suggesting that a minority stake of up to 15 percent could be sold soon.

the Herald first revealed NZ Rugby’s historic negotiations with Silver Lake last May.

Realizing that NZ Rugby’s financial model could no longer solely rely on the All Blacks to fund the game, a senior source at NZ Rugby explained how a private investment could be made.

“I would establish a subsidiary company of NZ Rugby and obtain investments in that company in some form of association,” the source told Herald In May. “You put business assets in that company, either in combination with Sanzaar partners and something like Super Rugby in its reincarnated form, or the Rugby Championship.

“We have to obtain sources of income and we cannot afford to finance them ourselves.

“Certainly at the Super Rugby level our financial model is under great pressure, both from the competition and from our teams. We are very undercapitalized. That is a critical area.”

Following the Herald report, which indicated that negotiations with Silver Lake and other private investment firms would resume once the future of Super Rugby had a firm plan, Sky News UK now suggests that a 15 percent stake could be sold for an estimated $ 2 billion.

The development comes as Luxembourg-based CVC Capital Partners prepares to finalize a £ 365 million deal for 14.5 per cent of Six Nations’ trading rights, with a five-year deal to be confirmed. at the end of this month.

In 2018, CVC took a 27 percent stake in the English club rugby Premiership.

In an interview with the Herald Last November, while revealing a $ 40 million impact on cash reserves due to the impact of Covid-19, NZ Rugby CEO Mark Robinson confirmed that talks with private investment firms were progressing.

“We are open to seeking partners who can invest in New Zealand Rugby,” said Robinson.

“We are only in the early stages of that, but clearly there is a lot of work around the world on this.

“It’s right for us when we seek to make the best possible things for the game and try to explore all the avenues in which 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 media and digital rights strategy, reflecting a similar approach across the City Football portfolio. Group, the owner of Manchester City. of soccer interests.

Silver Lake was also part of a consortium that took control of UFC, the mixed martial arts franchise, in 2016.