New Zealand Rugby votes in favour of selling stake to US equity firm

is it just panic because covid has reduced so much revenue to clubs and teams? Post covid will it be a decision that they will regret?

Hi nroko, we obviously have differing view which is fine. To me selling off the 12.5% just really grates and I'd hate to see it eventually get to the debacle we are seeing with the major soccer clubs in the UK in future years. I think professional sport in general needs a reset. None of the sports appear to be sustainable in their current form. I'm happy to pay a subscription to watch Super Rugby, etc, I not happy to pay a subscription to see any national play though, I think we've lost out way there.

Agree, one is not necessarily tied to another. They could bring in expertise to increase revenue but there are costs associated with that also. In the end the best possible chance to get revenue growth is to get an investor to also put their cock on the block (i.e. 387mil). Its a partnership.

I think you should check the books before saying they will use up all money. They still have approx 60mil cash after losses from 2020. How can you say NZR didnt manage the funds? They had 100mil at end of 2019. I think they have done an excellent job to be in a position to have 100mil cash. Compare to Australia who is borrowing money from banks and World Rugby. However it's not sustainable anymore as NZR needs to increase spending in amateur level.

Don't the German Bundesliga clubs have a fan ownership model as well?

Hi nroko, yes I made quite a few assumptions, but can I point out so have you. I base my comments on historical comments from the NZRFU about the previous broadcasting deals and the AIG deal that money would trickle down the unions and money would be put away for a rainy day. Now maybe it was, I haven't looked over the books, and maybe Covid has sucked away at the last dregs of the savings but then again maybe the NZRFU didn't manage those earlier funds properly either and may not manage the $387 million going forward.

Mate whoever said fan ownership meant providing expertise? Shareholders of public companies don't run the companies they buy into, they do have a say through voting rights at annual and extraordinary meetings though. If NZRFU need additional expertise then there are other ways to get that expertise rather than selling off 12.5%. One is not necessarily tied in the other.

Hi OB, I'm not saying that 12.5% revenue equates to equal control (although it probably does or close to it), rather that 12.5% revenue cannot be equated to 12.5% control which seems to be the impression many have. Silver Lake will probably get 2 directors, NZR will probably also get 2 or maybe 3 if the players don't get one. That is a better reflection on the balance of power that the 12.5% number. Because they are proposing a Limited Partnership, neither NZR or Silver Lake will be actively involved - so the commercial intellect they will contribute will be limited to a couple of directors and the abilities of the staff/management appointed to the general partner company that is set up to run the LP. There will be dedicated staff focused on increasing revenue but of course this is a whole new set of overheads too. Silver Lake may second some of their staff into the new business. The critical thing is what is in scope - is it just broadcast deals, merchandise and sponsorships or does it extend to fixtures, tournament structures, player and personnel recruitment etc. In Formula 1 Silver Lake completely restructured the locations and fixtures. We just don't know this, but it won't be easy to attain the doubling or tripling or revenue with 3 to 4 years that will be necessary to make this deal work for either partner just on broadcast, sponsorship and merchandise especially when some broadcast and sponsorship deals are already set for a few years. So there must be a suspicion at least that the general partner company will have more control over professional rugby in NZ than just the background commercial arrangements.

RIP Rugby Union

Central contracting is an affordable option. It doesn't cost. What does cost is allowing clubs to have the final say over national unions (see France and England). As for professional sport: nothing stopping Australian players from joining Kiwi clubs (Australian captain Caitlin Bassett in netball is now playing in NZ) or teams (the southern Huskies from Tasmania played in NZ's NBL until they became the Auckland Huskies; the club relocated from Tasmania to NZ!). Aussie players and coaches are free to play in NZ rugby (Pete Samu was a Crusader, Michael Alaalatoa is about to finish as a Crusader, Daniel Helangalu is at the Blues, Phil Mooney at Otago once upon a time) if they want. But do they want to? It's instructive that NZ athletes are more willing to travel for their sport while Aussies are less so. As for the NRL: please, take the Warriors now. I'd freely give them back if I could.

I know Im brilliant Wayne but do appreciate you confirming it…Cheers… Looks like you know didly squat about rugby in general and SA rugby and their plans and intentions in particular so I see no point in trying to educate you with those predetermined biases in some of your rants here…Enjoy your day Wayne….

No, what NZ has is the sport being culturally dominant in NZ, and the all blacks worshipped, THAT is their clear advantage. NZ can’t afford central contracting, and neither can Australia, hence why the whole system is going broke in Australia & NZ without South African broadcast revenue to prop them up. The point is New Zealanders want access to Australian professional sport, and get it, all done without Australia being able to claim them. Why a similar system couldn’t be arranged here is purely because you guys don’t want the aussies ( be it a pro side in Australia, or the wallabies) to benefit from it. Whenever NZ can benefit from it you guys are happy to have New Zealanders fully involved in Australian professional sport, hence why I keep calling out this hypocrisy from kiwis.

Rugby Australia has a habit of following New Zealand, which is risky for RA in its own right. NZ's central contracting (or protectionist as you call it) system is the absolute envy of all other rugby nations. Hamish McLennan is on the record as saying RA was prepared to add bar Wallaby call-ups for any Kiwi players that Oz Super sides may sign (like NSW did with Whetton and, more so, Caird) from NZ so soon after claiming that Aust had enough local depth to fill 5 teams. Remember Mike Harris? As for the NRL, how many of those Kiwis were born/raised in NZ and how many in Australia? I don't complain about the NRL because it's less of a threat (at the moment) then cashed up Aussie Super Rugby sides (looking at you, Force) chasing a quick fix by signing up Kiwi players sight unseen; BTW, how well did Willie Ripia work out for the Force?)

The competition has NEVER been financially viable under the NZ influenced protectionist system that Australia followed. The ONLY reason the super rugby system was viable previously was SANZAAR was relying on the fact that South Africa were providing the bulk of the revenue raised to fund Australia & NZ’s system…South Africa is gone now, and the system is naturally not financially viable in this format in Australia & NZ without outsiders giving them money! And once again fiwiboy, an open comp doesn’t have to mean NZR are losing players to Australia, that’s just silly. The NRL hires 40% of playing stock as kiwis. (Their major problem is letting players instantly defect to another nation though), and you don’t complain about that. Instead kiwis seem proud the NRL relies on their talent.

NZ are pragmatic; they know a TT player draft would turn Rugby Australia into another overseas poacher (which they are already doing anyway). Forget it. And my reply was focused on making the competition financially viable; not bailing out the misfiring Australian player development system.

And Sydney is a basketcase of a city: it's insanely overpopulated, geographically huge, and has a massively inefficient public transport & road system. Fiwiboy wouldn't even bother seeing the all blacks play the argies in Parramatta because he claimed it would take to long to get there and back from Manly...and how often do the all blacks in Sydney woodart?!! And what does the AFL playing some St Kilda games out of Wellington relate to anything here???

And why would I "make up a story" about my next door neighbour? :laughing: The point is people will travel for sports events that are culturally significant.

We've been through this before. If NZR were pragmatic a proper trans-tasman comp could be arranged with open recruiting/or and drafting of players. This model of "super rugby" will never realistically work for either nation, but was fine if South Africa was subsidising it, as per the previous arrangement. The sport would be better in Australia of maximising it's Sydney footprint (where most of the sport's actual grassroots support exists),a successful model as shown by the AFL & NRL, and maximise revenue. NZ might have the players, and the all blacks dominant, but they just don't have the money for this system. The PE firm delivers a one off sugar hit... but from now on sucks out 12.5% of all commercial revenue earned, and won't contribute another cent apart from their one time up front cash amount to buy in.

You missed my point that a stadium can hold other sporting and cultural events. The AFL’s Docklands stadium and the RFU’s Twickenham Stadium show this. If you don’t think that’s feasible then you can play the maximum amount of games out of Eden Park…simple!

one of the many points flying over your head ,is that nz rugby owning a stadium anywhere is an exceedingly stupid idea. when pressed on that point, you immediatley make up a story about your next door neighbour, when pressed on that, you try and pivot(again) and tell us that All Black games are something that us Kiwis will willingly travel for. best you talk about something you know about(if thats possible) because its obvious you know very little about NZ rugby(just enough to have a chip on both shoulders). you and suede should get a room and compare knowledge about NZ and NZ rugby(wont take long, ask for an hourly rate)