WELLINGTON (AFP) – New Zealand Rugby is in talks with private equity investors after the Covid-19 pandemic reduced the union’s cash reserves, Chief Executive Mark Robinson revealed on Thursday ( November 5)
In a move that raises the prospect of selling the famous All Blacks name to the highest bidder, he said a fundamental overhaul of the game’s finances was needed for it to happen.
He told the New Zealand Herald that the NZR burned 47% of its NZ $ 86 million ($ 783 million) in cash reserves during the pandemic, which equates to over $ 40 million neo -Zeeland
Although he does not hit the NZ $ 100 million in revenue, he warned in April – when gambling was suspended and New Zealand was on hold – it still puts NZR under huge financial pressure
Robinson, a former All Blacks half-back, said NZR is looking for alternative sources of funding, including private equity
« We are open to looking for partners who can invest in rugby in New Zealand, » he told the NZ Herald. « We are only at the initial stages, but there is clearly a lot of work going on around the world on this It’s just for us that we’re looking to do the best things we can for the game and try to explore all avenues that we’re looking at something like this «
Robinson said that NZR is keen to use the capital and expertise offered by private equity to increase its income
He said that it « would provide some of the resilience that the game needs to stay sustainable and withstand the kind of shocks we’ve seen this year, if they happen again in the future »
Robinson has not named any potential private equity partners, but a report this week in the Australian newspaper indicates that NZR was in talks with US firm Silver Lake. The California firm specializes in technology investments, but holds stakes in mixed martial arts group Ultimate Fighting Championship (UFC) and City Football Group, the portfolio group that owns English Premier League finalist Manchester City
The All Blacks are three-time world champions and have an almost 80% win rate, which has earned them worldwide recognition backed by more than a century of tradition, including the famous challenge from before -haka match
The team have the most valuable brand in world rugby, according to UK consulting firm Brand Finance, which said last year it was worth £ 144million ($ 254m)
If such a profile would be attractive to a private equity firm, there would also be questions about what investors would want in return for an injection of cash
« Even before Covid, and certainly during and as we go through it, the game was not financially sustainable, and we had challenges in terms of engagement and participation at different levels, » a he declaredconz « We have to take this opportunity to address some of these things, be really honest about them and work with all of rugby to fix it »
Private equity is not a new concept in rugby CVC Capital Partners, which previously held a majority stake in Formula 1, has bought parts of the English Premiership and Europe Pro14 and is in talks to invest in the Six Nations
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Rugby, Super Rugby, New Zealand Rugby, Fiji, Mark Robinson, 2022, Private equity
World news – UA – Rugby: the New Zealand federation short of cash courting private equity
SOURCE: https://www.w24news.com
