Where to for Super Rugby?

[Dismal Pillock]

A Smith

What could possibly go wrong with this noted legal scholar at the helm.

 

[Dismal Pillock]

As stated elsewhere, when you're the NZRFU and you're chundering thru 100 mill+ a season, the 500 mill will be gone quickfast and then youre reduced to spending the rest of eternity as the bitch playtoy lapdog of some boardroom fucks in JesusLand. Not flash.

 

[half]

From the Roar

Maybe I am not alone, and cough cough cough cough what I have been saying about private investment into a local domestic competition will come to pass.

In part the article reads

""" In recent weeks it has been reported that Rugby Australia Chair Hamish McLennan has begun discussions with potential private equity investors to invest in Australian rugby and resolve the code’s financial woes."""

Look forward to the normal brickbats but its the Grand Poobar now saying the same thing.

https://www.theroar.com.au/2021/03/...esnt-include-the-national-rugby-championship/

 

[Adam84]

I don’t think anyone was ever against attracting private equity in the model been proposed, if my memory serves me correctly you had suggested private equity stakes in individuals club, which I think people had doubts about.

 

[Rebel man]

The article is right we desperately need the NRC back the Tahs refusal to bye in is why they were left behind. Where did this Brumbies team start to develop? The Vikings and so on. People ask can we afford the NRC the question really is can we afford not to have it?

 

[Braveheart81]

The private equity deals happen due to financial necessity. The first deal in 2018 when the UK Premiership sold a 27% stake was because most of the clubs were losing a lot of money and needed cash.

COVID has then provided a prime time for PE (mostly CVC) to buy in to Six Nations, NZRU and potentially RA because organisations are cash-strapped and need outside investment.

This is classic PE. They look to buy when prices are deflated and businesses need capital to stay afloat.

Suggesting this should have happened a couple of years ago isn't necessarily reasonable because the two parties would have been a long way apart in terms of price.

 

[Dan54]

Yep it pretty hard to get your head around how it all works, there was a bit of discussion on Breakdown last night, generally were for it, but all admitted to not knowing all details on how it would play out. Apparently in nZ's case thay having a head banging session next week, and would assume that Justin Harrison will be talking to Rob Nichols after to see what they all think as players assoc from around the place seem to communicate over these thing quite a bit. They all got same interests etc.

 

[waiopehu oldboy]

NZR & NZRPA going to mediation on Wednesday:

https://i.stuff.co.nz/sport/rugby/a...rust-nzr-will-do-the-right-thing-for-the-game

 

[barbarian]

Man I hope the latest Queensland outbreak doesn't do anything to hurt the chances of a TT Super comp getting up this year.

 

[Rebel man]

I think private equity will be huge. I think setting up an AFL commission style board to run the game will be far greater then the model we have. This is by no means a shot at NSW and QLD but they are given too much power under the old model and are hopelessly conflicted. How can you do what’s best for the game nationally and for your state at the same time when they are competing interests?

 

[zer0]

Seems like the NZ situation has been resolved.

NZ Rugby will make a "special announcement" in Auckland on Thursday, fueling speculation it may have secured a deal with US private equity firm Silver Lake.

.....

NZ Rugby CEO Mark Robinson and general manager community rugby Steve Lancaster will attend the announcement on Thursday.

https://www.stuff.co.nz/sport/rugby...m-massive-deal-with-us-tech-giant-silver-lake

IIRC the official vote is by the unions at the general meeting in a few weeks, and they all (or, at least, overwhelmingly) seem to be on board. Presumably this announcement, then, will be 'NZRPA has no more issues' thus making the official vote a procession.

EDIT: jk. Never mind. They literally just updated the article to say it's unrelated.

 

[Rebel man]

Seems like the NZ situation has been resolved.



https://www.stuff.co.nz/sport/rugby...m-massive-deal-with-us-tech-giant-silver-lake

IIRC the official vote is by the unions at the general meeting in a few weeks, and they all (or, at least, overwhelmingly) seem to be on board. Presumably this announcement, then, will be 'NZRPA has no more issues' thus making the official vote a procession.

EDIT: jk. Never mind. They literally just updated the article to say it's unrelated.

Can’t see why you would want to buy into the NZRU where is the growth potential? You look at the population projections and it has them growing to 6mill by 2050. Like us they aren’t in an attractive time zone to sell the products into other nations

 

[Dismal Pillock]

Local Dingus Sells All Blacks

--NZ Herald--

NZRFU CEO Mark Robinson has sold the All Blacks.

"Oh, hay guyz, big news, I just sold the All Blacks to some Goldman Sachs-type American businessmen! They seemed nice! They even promised me some shares in the All Blacks! Does anyone know what 'shares' actually means? I guess it means I have a 'share' in the All Blacks! Those American hedge fund managers sure do sound friendly! Hay, check out my Herb Tarlek jacket. Ironic, right?"

 

[zer0]

Can’t see why you would want to buy into the NZRU where is the growth potential? You look at the population projections and it has them growing to 6mill by 2050. Like us they aren’t in an attractive time zone to sell the products into other nations

Because they're not looking locally. They're looking at the All Blacks global brand which is worth, to use the correct financial parlance, a butt load.

EDIT: Or if you prefer more fancy wordsmithing:

Details of the proposed $465 million New Zealand Rugby-Silver Lake deal are beginning to emerge, with the US-based investment company targeting a huge global pool of more than 60 million potential All Blacks fans who don't yet spend any money on the brand.

.....

The enormous global pool of potential supporters (and customers) is likely to have driven Silver Lake's $3.1 billion valuation of NZ Rugby's commercial arm, sources said, with $465m representing the 15 per cent share that it has offered to buy.

The private equity firm's belief is that it can reach those global supporters far more effectively than NZ Rugby can, with its experience in building the UFC juggernaut helping to cement that belief.

Even if only a percentage of those global supporters can be persuaded to spend some money on the All Blacks, the earning potential for NZ Rugby is significant.

Tapping into overseas markets has long been an ambition for NZ Rugby, with the inability to earn a cent from money-spinning tests in England – one of the few times rugby grabs serious media coverage in the UK – one enduring frustration.

However, there is a belief that Silver Lake's expertise can change the picture, with Japan' and the USA seen as particular markets of interest.

Japanese engagement in the 2019 Rugby World Cup was enormous, while North America holds an obvious commercial attraction.

https://www.stuff.co.nz/sport/rugby...-all-blacks-fans-for-huge-global-revenue-push

 

[Derpus]

'targeting a huge global pool of more than 60 million potential All Blacks fans who don't yet spend any money on the brand.'

The ABs are good at the ruggerby but fuck me they aren't exactly Man Utd. There isn't an ocean of African and Asian school kids running around with SBW shirts on? or maybe they think there could be if they asked nicely.

Plus that brand is set to wane if they don't fix their team. More likely to end up a slightly better Wallabies than some kind of gargantuan marketing monstrosity out of the EPL.

 

[Braveheart81]

Can’t see why you would want to buy into the NZRU where is the growth potential? You look at the population projections and it has them growing to 6mill by 2050. Like us they aren’t in an attractive time zone to sell the products into other nations

Their test matches are hugely valuable. Rugby globally is growing. AIG didn't have a lucrative sponsorship deal with the All Blacks because they were hoping to sell insurance policies in NZ, they targeting a global audience.

I'm sure their test matches would be worth more if tests in NZ were played in a better time zone but the matches they host against the Lions, England, Ireland, France etc. are always going to be worth a lot of money. The Rugby Championship tests are always going to be worth a lot of month because it features 4 of the top 12 teams and most of the time 3 of the top 5 or 6.

You buy a 15% stake now based on a low valuation due to financial pressures from COVID and then own that forever. Just recovering back to previous levels is going to increase the value of the investment. Your risk is that New Zealand ceases being a rugby powerhouse which most would consider unlikely.

 

[Derpus]

What do NZ stand to gain? bit of a short term sugar hit? I thought they had loads in the bank.

 

[Braveheart81]

What do NZ stand to gain? bit of a short term sugar hit? I thought they had loads in the bank.

Hopefully a strategic partner with a lot of capital that will invest to help them grow the value of the business.

 

[Dan54]

'targeting a huge global pool of more than 60 million potential All Blacks fans who don't yet spend any money on the brand.'

The ABs are good at the ruggerby but fuck me they aren't exactly Man Utd. There isn't an ocean of African and Asian school kids running around with SBW shirts on? or maybe they think there could be if they asked nicely.

Plus that brand is set to wane if they don't fix their team. More likely to end up a slightly better Wallabies than some kind of gargantuan marketing monstrosity out of the EPL.

Mate it had me buggered, but I have been in marketplace in France where you can buy French soccer shirts, and AB jerseys, and bugger all other sports gear. Seems the brand is huge. Son who lived in Italy always laughed how many people there were wearing AB jerseys etc, he reckoned apart from Italian soccer and the couple of big soccer clubs there it was probably one he saw the most, reckons that 80% that wear it don't know what rugby is, just know the brand etc. I know Adiadas reckoned that they were just behind Brazil shirts and Man U shirts in sales over quite a few years. See it like fashion if enough wear them , others want them. Personally I think many who buy them like the colour!

 

[Dan54]

What do NZ stand to gain? bit of a short term sugar hit? I thought they had loads in the bank.

A short term sugar hit and someone who will go to market and lift revenue by quite a margin.
I will add it maybe a bit above me, but seems some people are doing serious figures.

I will also add that an awful lot of so called knowledgeable people on forums absolutely rubbished them selling out to AIG for $20 mill a year and how bad that was going to be. I leave it to you to decide if it was bad.