Friday, 19 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Sport|Rugby

Rugby: History-making vote delayed in New Zealand Rugby's deal with Silver Lake

13 Apr, 2022 07:00 AM3 minutes to read
NZ Rugby House building in Wellington. Photo / Photosport

NZ Rugby House building in Wellington. Photo / Photosport

Gregor Paul
By
Gregor Paul

Reporter

VIEW PROFILE

The potential history-making vote to approve a $200m private equity deal between New Zealand Rugby and US investment firm Silver Lake has been delayed.

The deal, which will see Silver Lake pay $200m to hold a five per cent stake in NZR's commercial assets, needs to be ratified by the provincial unions.

The intention was for the vote to take place at NZR's annual general meeting on April 28, but the Herald understands that will no longer be happening.

It is understood that the unions have asked for more time to evaluate the deal which carries a level of complexity and is significantly different to the original Silver Lake investment proposal which they approved last year.

The deal the unions approved last year was to sell a 12.5 stake to Silver Lake for $387.5m – but it was a proposal that failed to win the backing of the Rugby Players' Association.

The proposal had to be majorly reworked to win the approval of the RPA and in February this year, a new deal was announced – one that had the players' blessing, but was of such material difference to the 2021 version, that it would require for the provincial unions to ratify it at the AGM.

There are several points of difference in the new deal, the most significant being that while Silver Lake will initially invest $200m, there will also be a second capital raise later this year which will allow domestic institutions such as KiwiSaver funds and ACC to co-invest alongside the US firm.

New Zealand Rugby CEO Mark Robinson. Photo / Dean Purcell
New Zealand Rugby CEO Mark Robinson. Photo / Dean Purcell

Under the terms of the new deal, Silver Lake's investment will effectively act as a bank loan for the first three years with a four per cent interest rate.

Advertisement

Advertise with NZME.

It will convert to an equity stake in 2025 compared with the first deal which would have seen Silver Lake immediately come in as an equity partner and enjoy higher returns.

Also, the new deal will see Silver Lake, RPA and NZR co-jointly create a vehicle called Global Rugby Opportunities which will look to invest in rugby-related technology business and possibly other national unions and competitions.

Related articles

Sport|Rugby

'It's our turn': How the Blues turned a corner ahead of Crusaders clash

13 Apr 04:30 AM
Sport|Rugby

Liam Napier: The ideal candidate to help fix Black Ferns' long-standing issues

13 Apr 12:30 AM
Sport|Rugby

Moana Pasifika blown away by clinical Hurricanes

12 Apr 09:04 AM
Sport|Rugby

Alice Soper: The most worrying thing about retaining under-fire Black Ferns coach

12 Apr 07:00 PM

Major accountancy firm PricewaterhouseCoopers were commissioned by NZR to independently review the new deal and their report was only made available to the provincial unions late last week.

The Herald has not seen the report but understands that PWC do not raise any red flags in their findings other than reiterating what many other analysts have already said, which is that for the deal to stack up financially, Silver Lake will need to deliver on the relatively ambitious revenue targets they have forecast.

One other factor that may be troubling the provincial unions is that an independent review of NZR's governance structure and processes has been agreed as part of the deal.

When the RPA rejected the initial deal last year, they agreed to come back to the negotiating table on the condition that regardless of whether a deal was later agreed with Silver Lake or not, that the national body would put its governance under the most intense scrutiny to determine whether it was fit for purpose.

It is believed that NZR chief executive Mark Robinson has written to the unions to inform them that the Silver Lake vote won't be taking place at the AGM and that he is hopeful that within the next few weeks, a date will be set to hold the vote at a Special General Meeting.

Advertisement

Advertise with NZME.

Latest from Sport

Video

Hawke Bay footballer topped ESPN's plays of the day

Premium
Sport|Rugby

'Joy, despair and disbelief': How Rotorua rugby schoolboys stunned Hamilton

18 Aug 10:17 PM
SportUpdated

Hawke's Bay footballer's wonder goal the top play on ESPN

18 Aug 10:11 PM
Sport

'It's sexual assault': Former NRL star banned after vulgar on-field act

18 Aug 09:17 PM
Sport|Rugby

Isa Nacewa: The 'masterstroke' that saved Ian Foster

18 Aug 07:20 PM

Most Popular

Mid-air horror: Panic on Air NZ flight as masks drop, emergency declared
New ZealandUpdated

Mid-air horror: Panic on Air NZ flight as masks drop, emergency declared

18 Aug 10:55 PM
Live: 400+ Nelson homes evacuated; Far North town isolated after slips
New ZealandUpdated

Live: 400+ Nelson homes evacuated; Far North town isolated after slips

18 Aug 10:41 PM
Murder charge after death at property in South Auckland
New Zealand|Crime

Murder charge after death at property in South Auckland

18 Aug 09:43 PM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP