(Reuters) -New Zealand Rugby (NZR) and the New Zealand Rugby Players Association (NZRPA) have approved a partnership agreement with U.S. private equity firm Silver Lake, NZR and NZRPA said on Thursday.
The partnership will provide “capital to invest in the game at all levels”, they said in a statement https://www.nzrugby.co.nz/news-and-events/latest-news/new-zealand-rugby-and-new-zealand-rugby-players-association-boards-approve-partnership-with-silver-lake, with Silver Lake to invest NZ$200 million ($133.74 million) in a new commercial entity that will “house all revenue-generating assets of NZR”.
Silver Lake, NZR and NZRPA will also invest together in rugby-related businesses outside of New Zealand.
“In the privileged role we hold as guardians of our national game, we are proud of where we have landed with this partnership,” NZR Chairman Stewart Mitchell said.
“I want to acknowledge that the journey to get here hasn’t been easy at times, there was healthy debate and some adjustments by all parties, but always with the good of the game at the heart of this process.”
In April, 26 constituent provincial rugby unions approved the sale of a 12.5% stake in NZR’s commercial arm, including rights to the All Blacks, to Silver Lake in a deal worth NZ$387.5 million.
But the NZRPA opposed the deal and counter-proposed the sale of a 5% stake through an initial public offering in the country’s stock market.
NZR said Silver Lake would own between 5.71-8.58% of the established ‘NZR CommercialCo’ after an additional co-investment later this year, compared to the 10-15% stake that had been previously proposed.
The co-investment will be offered to New Zealand-based institutional investors.
“A minimum of NZ$62.5 million will be offered, with the potential to seek up to NZ$100 million if parties agree. Silver Lake will underwrite this institutional syndication if it is not fully subscribed,” the statement said.
“NZRPA is excited for this partnership and what it means for the future of rugby,” NZRPA CEO Rob Nichol said. “It addresses our fundamental principles ensuring a true comprehensive partnership, allowing us to invest together in rugby globally, and establishing the right governance models.
“Silver Lake have shown great integrity and a commitment to getting the right deal in place. They were willing to listen to everyone and understand what rugby means to people in our country.
“We are confident that Silver Lake is the right investment partner.”
($1 = 1.4954 New Zealand dollars)
(Reporting by Rohith Nair in Bengaluru; editing by Clare Fallon)
