After winning Super Rugby Transtasman in 2021, the Blues now have new faces in their ownership, with NZ Rugby selling their stake in the franchise to a high-profile group. Liam Napier reports.
The Blues have secured a private investment deal with a consortium of local businessmen, led by former AllBlacks coach John Hart, to purchase a 40 per cent stake in the franchise for around $1.7 million.
New Zealand Rugby acquired the 40 per cent stake in the Blues three years ago after the messy ownership split from richlister Murray Bolton.
Having helped stabilise the Blues through a turbulent period of ownership, leadership, coaching change and financially fraught Covid challenges, NZ Rugby has attempted to offload its shares in the franchise for the best part of 18 months.
Hart, the All Blacks coach from 1996-1999, has compiled a group of 12 businessmen who, through their Better Blues Company Limited, will purchase the stake from NZ Rugby.
TJ Faiane and John Hart celebrate the Blues' Super Rugby Transtasman victory. Photo / Photosport
The Herald understands three bidders made the shortlist for the 40 per cent stake, including one offshore party. The Better Blues group were considered the best fit for the franchise and it is understood they will pay around $1.7m for their ownership share.
The five New Zealand Super Rugby teams are worth $4 to $6m each. All embrace some form of private investment.
The Companies Office lists three directors for Better Blues – Grant Graham, Hart and Richard Seton –alongside 12 shareholders including Mainfreight managing director Don Braid and Barfoot & Thompson director Peter Thompson, the latter already active in sponsoring the Blues and privately contributing to third-party deals involving high profile player recruits.
Mainfreight chairman Bruce Plested, NBR richlister Stephen Lockwood, Grant Ryder, Brett Russell, Graham Jackson, Matthew Willis and Chris Hart complete the investor group.
The remaining 60 percent of the Blues shares has been split between the provincial unions of Auckland, Northland and North Harbour since 2013.
The 40 per cent shareholding entitles the Better Blues group to three seats on the board. Two will be filled by Hart and Graham, with the third yet to be determined.
Hart, who with Graham served on the Blues board as NZ Rugby representatives for the past three years, outlined the investor group's motivations to the Herald.
"There is a recognition the Blues have a significant role to play in the region in terms of rugby in the community. All of these people are involved in sport in the community. It's a group of likeminded people we brought together to help the Blues consolidate and grow and give them the security," Hart said.
"We have full confidence in the management team structure, the board, so we want to give continuity which a new buyer often does not. That was an important element we brought to an organisation that has gone through a lot of change in the last few years. It's time now to back the Blues.
"The group won't be involved day-to-day at all. They're there for funding, giving enthusiastic support and I'm sure they'll be at a lot of games.
"We want the Blues to be successful on and off the field but you measure success in many ways. It's a tough competition in terms of all those local derbies. You've got to be careful saying you expect to do this and that. Yeah, sure, we'd like to win the Super Rugby title at some stage, but the main thing is we're competitive."
Blues chairman Don MacKinnon said while the Better Blues group were the preferred bidders their value was not determined solely from an investment perspective.
"It gives us real certainty about ownership. It's a real vote of confidence in the club. We had a significant amount of interest - some really high quality people were keen to be involved so we're delighted," MacKinnon said.
"From a financial perspective New Zealand Rugby were incredibly reasonable. Their main goal was to get back what they put in so they were extremely fair in that regard and they also consulted closely with our board.
"Ultimately it was their call, not ours. They selected the final bidder but we were consulted. The quality of the investor group, and the fact they're keen to follow the direction we're heading, appealed to New Zealand Rugby."
Locking in an investor group, on the back of claiming their first title in 18 years this season, is another sign of the Blues getting their house in order as they attempt to challenge for further silverware next year and beyond.
"It feels like we've come a long way in the past three years," MacKinnon said. "There has been a lot of change but we've got some really good people in place and despite Covid there's a good feeling around the club. Next year will pose its challenges with rehashed draws and adapting but we're very optimistic about where we're tracking. This is another piece in the puzzle, and an important one at that."
