The Māori Rugby Board and provincial rugby unions will need to ratify a just-signed partnership agreement between the New Zealand Rugby Board and the NZ Rugby Players Association with international investment firm Silver Lake, which will bring major capital to invest in the game at all levels in Aotearoa.
Under the agreement Silver Lake will invest NZ$200 million in a new commercial entity that will house all revenue-generating assets of NZ Rugby, with additional co-investment of up to NZ$100 million to be offered to New Zealand-based institutional investors later in 2022.
A new company will be created under the control of NZR under the arrangement. NZR CommercialCo will contain all the revenue-generating activities of NZR, and Silver Lakes investment, as well as the $100m by NZ investors, will eventually see Silver Lake own between 5.7% and 8.6% of the new company.
That is significantly lower than the 12.5% that had previously been discussed, which led to NZR and the players' association falling out at times. The deal has previously been supported and accepted by NZR, its 26 provincial unions and the NZ Māori Rugby Board but NZRPA rejected it, commissioning instead an alternative arrangement to have parts of NZR’s assets listed on the stock exchange.
NZR chairman Stewart Mitchell says “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.”
Pivotal moment
That relationship appears to be mended, with NZRPA chairman David Kirk and board member, and Black Ferns Sevens captain Sarah Hirini saying it’s a pivotal moment for rugby in New Zealand.
Kirk says the agreement provides capital on a sound economic basis and Silver Lake brings added capability to execute on new growth opportunities. "The proposed investment by New Zealand institutions provides an opportunity and natural pathway for New Zealanders to share in the growth of rugby over time."
Hirini says the partnership will position Aotearoa well into the future as rugby continually grows and develops around the world.
“This proposal brings new investment and capability into the game and will help us go after some exciting new opportunities, especially given 2022 is such a big year for women’s rugby. There’s a lot of change in rugby globally and this partnership will position us well.”
Silver Lake, NZR and NZRPA will also establish “Global Rugby Opportunities” to invest together in rugby-related businesses outside New Zealand, which will earn NZR and NZRPA a 15% share of the profits in return for their contribution of sports expertise, know-how and relationships.