US funds invest in New Zealand rugby

First change: 17/02/2022 – 13:18Last modified: 17/02/2022 – 13:16

New Zealand Rugby (NZR) offers a deal to create a business that enjoys a majority. Californians will initially invest $ 200 million (11 118 million, $ 133 million).

Later this year, institutional investors will be able to pay a further 100 million (59 million euros, $ 66 million), while NZR will have to hold 90% of the new company’s capital.

The purpose of the New Zealand Federation is to invest financial resources in women’s and regional rugby, while creating an endowment fund to ensure the long-term financial stability of the Federation, which is usually in short supply: 20 million euros ($ 22 million) in losses from the corona virus outbreak in 2020.

Mark Robinson, the federation’s director, said after two years of controversy that “this is an extraordinary opportunity to secure the future and unleash true potential for New Zealand rugby.”

NZR President Stewart Mitchell said he was pleased his organization had fulfilled its responsibilities as a “defender of the game”.

“The path to get here has not always been easy, with some healthy discussions and some changes on all sides, but always with the benefit of the game at the center of the process,” Mitchell added.

Oceanic Country Players Union (NZRPA) threatened to ban. NZRPA leader David Kirk told AFP last year that he feared the souls of all blacks would be sacrificed for business interests, but had changed his mind and now supported the coalition.

According to Kirk, “this agreement provides capital on a solid economic base and Silver Lake can create new growth opportunities.”

New emission rights

Silver Lake owns part of the trade rights to NZR and is responsible for negotiating new broadcasting rights or selling derivative products worldwide.

“Digital technologies are transforming all sports, and we look forward to bringing our global network and resources to promote New Zealand rugby and take advantage of future opportunities,” said Silver Lake CEO Stephen Evans.

At the center of this association is, of course, the All Blacks, three-time world champions, who are recognized as the absolute specialty of world rugby.

The deal is worth ில்லியன் 2 billion ($ 2.2723 billion) in New Zealand rugby. Silver Lake initially sought to own 12.5% ​​of the business, but feared that the shareholders’ association would give them too much power.

Silver Lake diversified its operations by acquiring a 10% stake in City Football, the owner of Manchester City Club 18 months ago.

Rugby attracts more and more investment funds, especially the wealthy fans who love overseas tours (like All Blacks, British Lions).

CVC Capital Partners has participated in the UK Championship, Six Nations Championship and Provincial Pro14 tournament in Great Britain.

For its part, he said recently that the Australian Federation is looking for other sources of income.

© 2022 AFP