New Zealand Rugby seals deal with US private equity firm
New Zealand Rugby seals deal with US private equity firm
New Zealand Rugby said Thursday it had secured a lucrative investment from US private equity firm Silver Lake after overcoming opposition to the deal from the players' union.
The partnership will see Silver Lake put NZ$200 million ($134 million) into a joint commercial entity, which will remain majority owned by NZR, with a stake of more than 90 percent.
NZR described the deal as "transformational" for the cash-strapped body, providing money for priorities such as women's and grassroots rugby, as well as creating a legacy fund ensuring financial stability well into the future.
"This partnership presents rugby with an extraordinary opportunity to secure its future and unleash its true potential -- we are truly excited by what we can achieve together with Silver Lake's world class capabilities," NZR chief Mark Robinson said.
It follows almost two years of sometimes acrimonious negotiations when the New Zealand Rugby Players' Association threatened to veto the deal.
NZRPA chairman David Kirk, who last year told AFP he feared the investment would result in the famed All Blacks being sold out to commercial interests, said he now supported the partnership.
"The agreement provides capital on a sound economic basis and Silver Lake brings additional capability to execute on the new growth opportunities," he said.
Under the deal, Silver Lake gains a stake in NZR's commercial rights and is expected to take the lead negotiating merchandise and broadcast deals worldwide.
"Digital technologies are transforming all sports, and we look forward to bringing our global network and resources to help New Zealand rugby drive innovation and take advantage of all the opportunities ahead," Silver Lake managing director Stephen Evans said.
The focus for the Americans is the All Blacks, the three-time world champions recognised globally as the benchmark in rugby union.
(P.Tomczyk--DTZ)
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