Where to for Super Rugby?

[WorkingClassRugger]

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 serios figures.

Depending on how it's managed.

 

[Dan54]

Depending on how it's managed.

Of course, but isn't that the case with every single investment ever done, only good management ever make an investment good.

 

[Derpus]

So, apparently, Silver Lake are the organisation that rigged the UFC such that the fighters only earn about 10% of event revenue (apparently US average is roughly 50/50 - negotiated with unions etc).

So this could be good for the Wallabies.

Edit: it was 16% of revenue.

 

[Derpus]

Of course, but isn't that the case with every single investment ever done, only good management ever make an investment good.

You've obviously never bought property in Sydney.

 

[WorkingClassRugger]

So, apparently, Silver Lake are the organisation that rigged the UFC such that the fighters only earn about 10% of event revenue (apparently US average is roughly 50/50 - negotiated with unions etc).

So this could be good for the Wallabies.

Edit: it was 16% of revenue.

Probably made easier by there being no fighters union and a small number of star names dominating the earnings.

 

[WorkingClassRugger]

You've obviously never bought property in Sydney.

Wait. You've been able to buy property in Sydney!!!

 

[waiopehu oldboy]

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

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

The website formerly known as mitre10cup.co.nz has had a bit of a re-branding.....

https://www.provincial.rugby/provincial-rugbynewsyear/

I'd heard the new naming rights sponsor was going to be the former naming rights sponsor ITM but going by that they've swapped one Aus big shed for the other one.

 

[Rebel man]

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.

But NZ does not make money the last two years they posted a profit was when the Lions were out and the World Cup year. Their is little potential for growth within NZ as well and as mentioned there tests are in a terrible timezone for international markets

 

[Derpus]

If you buy in cheap and the value appreciates you've made money, more or less. Even if they arent posting huge profits.

 

[WorkingClassRugger]

The website formerly known as mitre10cup.co.nz has had a bit of a re-branding...

https://www.provincial.rugby/provincial-rugbynewsyear/

I'd heard the new naming rights sponsor was going to be the former naming rights sponsor ITM but going by that they've swapped one Aus big shed for the other one.

Bunnings cup.

 

[Rebel man]

If you buy in cheap and the value appreciates you've made money, more or less. Even if they arent posting huge profits.

The thing is where does this growth come from? Silverlake isn’t going to get the RFU to share the rights when NZ tour there. The target of Japan and the USA well it’s not going to generate much support for the ABs especially when they have such a small population. It’s not like when that Indian media company set up a cricket streaming platform in the US to sell games to all the expats.

 

[Rebel man]

Bunnings cup.

Best on gets a Bunnings snag

 

[Braveheart81]

But NZ does not make money the last two years they posted a profit was when the Lions were out and the World Cup year. Their is little potential for growth within NZ as well and as mentioned there tests are in a terrible timezone for international markets

This is the cyclical nature of international rugby. They are not designed to be a profit accumulating entity in that they distribute surplus revenue to sub unions and invest in the grassroots etc.

Look at the spikes in broadcast revenue when they have a good inbound tour. That is what Silver Lake are buying into.

The question of whether this is a good plan for NZRU is another question. It will all depend on the contractual obligations to Silver Lake and whether they have to pay them a portion of revenue at any point.

 

[Rebel man]

This is the cyclical nature of international rugby. They are not designed to be a profit accumulating entity in that they distribute surplus revenue to sub unions and invest in the grassroots etc.

Look at the spikes in broadcast revenue when they have a good inbound tour. That is what Silver Lake are buying into.

The question of whether this is a good plan for NZRU is another question. It will all depend on the contractual obligations to Silver Lake and whether they have to pay them a portion of revenue at any point.

I just feel NZ is a very risky investment with the small size of the economy. They may make it work but it could also fail

 

[WorkingClassRugger]

I just feel NZ is a very risky investment with the small size of the economy. They may make it work but it could also fail

I doubt Silverlake are looking to NZ to find their ROI.

 

[WorkingClassRugger]

This is the cyclical nature of international rugby. They are not designed to be a profit accumulating entity in that they distribute surplus revenue to sub unions and invest in the grassroots etc.

Look at the spikes in broadcast revenue when they have a good inbound tour. That is what Silver Lake are buying into.

The question of whether this is a good plan for NZRU is another question. It will all depend on the contractual obligations to Silver Lake and whether they have to pay them a portion of revenue at any point.

That'd be key. What will the profit share arrangement be. I suspect they may be looking to grow the AB brand into the likes of Japan and Nth America alongside the growth of MLR there. Which kind of raises the question of what our PE talks will look like as you'd imagine that the easiest way to do so is via something like the RC.

 

[Derpus]

Any idea who our PE talks are with?

 

[Rebel man]

I doubt Silverlake are looking to NZ to find their ROI.

Just think if you were considering buying into Aus or NZ you pick Aus over NZ. NZ has little growth potential. Nobody invests not hoping to get a return at some point and with a market that has next to no growth potential and a business model that is only profitable when the lions come out I just don’t see it.

 

[Rebel man]

That'd be key. What will the profit share arrangement be. I suspect they may be looking to grow the AB brand into the likes of Japan and Nth America alongside the growth of MLR there. Which kind of raises the question of what our PE talks will look like as you'd imagine that the easiest way to do so is via something like the RC.

I just don’t see it the rise of Japan and the US will se a rise in the interest of their national sides not NZs. Yes it will open more secondary markets to sell their games into and the Japanese will be a good match with the time zone so that will deliver some more money to NZ. But I think of NZ if they can’t drive growth of this deal and they return to where they are at struggling to be profitable they are going to be in a world of hurt

 

[WorkingClassRugger]

Any idea who our PE talks are with?

CVC, KKR and Silverlake have all been mentioned since the PE option came about. And of course Forrest.