New Zealand Rugby set to debate selling All Blacks share to American investors

Rugby officials argue the sale would secure future financial sustainability after finances were battered last year by the coronavirus pandemic; the All Blacks have won the Rugby World Cup three times and were also runners-up in 1995

Last Updated: 28/04/21 8:10am

The All Blacks have won the Rugby World Cup three times

New Zealand Rugby are set to debate whether to sell a stake in the commercial value of the All Blacks to American investors at its annual meeting later this week.

New Zealand’s 26 provincial unions will vote on a recommendation from New Zealand Rugby it should bundle its commercial interests into a new entity and sell a 12.5 per cent stake in it to California-based Silver Lake Partners for $279m (around £200m).

If the recommendation is carried, it will mark the first time in more than 115 years the All Blacks would not be wholly owned by New Zealanders.

Rugby officials argue the sale would secure its future financial sustainability after its finances were battered last year by the coronavirus pandemic.

In documents to be presented to the annual meeting, NZR proposes transferring its commercial assets to a new company to be called Commercial LP and to transfer NZ$43.75 million ($31.5 million) from the sale price to that entity as operating capital.

A further NZ$39 million ($28 million) will be distributed to stakeholders, mainly the provincial unions, who are also cash-strapped after last year’s disrupted season.

NZR said it will also establish a legacy fund for longer-term strategic initiatives to ensure the sustainability of all levels of rugby in New Zealand.

Silver Lake Partners was launched in 1999 and has focused mainly on investment in the technology sector with holdings in companies such as Airbnb, Twitter and Dell Technologies.

It also holds a stake in City Football Group which owns Manchester City and which it lists in its Content and Entertainment industry vertical.

NZR has embarked on a nationwide roadshow tour to sell the Silver Lake deal to provincial unions with the concept facing push-back from players who have sought assurances that important traditional and cultural symbols such as the silver fern and the All Blacks haka will not be sold and commercialized.

The All Blacks have won the Rugby World Cup three times and were also runners-up in 1995.

The recent, failed Super League in European football has also caused a tremor of concern among some New Zealand Rugby fans.

Those fans fear the attitudes of owners shown in the attempt to establish that Super League showed an apparent indifference to history and to fans’ close attachment to clubs which might also be reflected in the rugby deal.

Opponents say the American investors are unlikely to be interested in the grassroots level of New Zealand’s national sport, and likely to press for the All Blacks to play more matches in high-value markets overseas.

Silver Lake will seek to grow the value of its investment by enlarging the All Blacks fan base around the world but also by increasing income from current revenue streams such as broadcast deals, ticket sales and merchandise.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *