Editorial: NZ Rugby looking for a Silver lining

NZ Rugby is considering a way to meet the challenge of rising outlays with a largely static income stream. Photo / Dean Purcell, File

Editorial

EDITORIAL

In the coming days, New Zealand Rugby will announce a decision on whether to sign off on a multimillion-dollar partnership with US investment firm Silver Lake.

When the proposal was announced, it seemed predestined after the Northern Hemisphere took similar measures. When the Six Nations committed to a deal with CVC, fears were expressed that New Zealand Rugby (NZR) would be left behind.

Silver Lake is a US fund manager and specialist in making investments in privately-owned technology companies. It has about $90b of assets under management, including stakes in Manchester City Football Club, UFC, IMG (a global sports and event management company), and the Madison Square Garden Group, which manages sports teams such as the New York Knicks.

An independent PriceWaterhouseCoopers review of the deal presented to NZR noted that Silver Lake believes it can double revenue for our national sport in the next seven to 10 years.

Illustration / Rod Emmerson

NZR says the deal means $37m will be distributed to provincial unions, Maori Rugby, clubs, and the Rugby Players Association, as well as other stakeholders such as the Rugby Foundation. Another $29m will go into a "legacy fund" to bolster and improve the community game.

Senior Herald journalist Gregor Paul has been working for months on a five-part series, leading up to the deal deadline. At the end of the series, Paul will deliver his verdict.

It promises to be a compelling read for anyone interested in the future of the game.