NZ Rugby boss Mark Robinson. Photo / Photosport
The New Zealand Rugby board will meet this evening in the latest attempt to press forward on the imminent Silver Lake deal.
After painstaking year-long negotiations – and costly mediation – between NZ Rugby and the Players' Association, the Herald understands the two parties are close to agreeing terms.
Such a breakthrough would represent the biggest hurdle cleared in the quest to strike a deal with the US technology investment giants.
In an email, obtained by the Herald, sent to the provincial unions last Friday, NZ Rugby chief executive Mark Robinson outlined the definitive change in tone surrounding the deal.
"The Project Future Steering Committee (SteerCo) met this week and after a positive and productive discussion agreed that the Project Future investment proposal should go to the NZR Board, as part of the total package to consider," Robinson wrote.
"SteerCo also had an in-depth discussion in regard to process and confirmed the desire to have PWC review the revised proposal in order to provide an updated independent review of this opportunity for NZR members."
Engaging accounting firm PWC to review the new investment terms underlines just how close an agreement is.
Last December the Herald reported Silver Lake's offer had been revised to $262 million for a 7.5 per cent stake of NZ Rugby's commercial rights – a significant reduction on the original $465m offer for a 15 per cent share, but at a higher valuation.
Silver Lake's potential stake is now understood to be sitting between 5 and 7.5 per cent.
The deal is expected to be brokered as a convertible note featuring a three-year period at the end of which debt is able to be converted into equity.
Caveats such as pursuing $30 to $60m from a New Zealand institutional investor group – the likes of ACC, KiwiSaver or the NZ Super Fund – remain on the table, though not all parties believe they are necessary or beneficial.
Among the many compromises in nearing an agreement, the Players' Association is believed to have secured a seat on the CommercialCo board that will be charged with maximising commercial rights, including broadcast, sponsorship, merchandising and growing future revenue streams such as streaming, Esports and global coaching clinics.
Following tonight's board meeting, which is expected to sign off plans to proceed, NZ Rugby will brief the provincial unions on the latest Silver Lake proposal tomorrow.
New Zealand's 26 provincial unions will then be given a consultative period to provide feedback and voice any concerns on the latest proposal, before voting at either a Special General Meeting or April's AGM.
The Herald understands significant frustration exists towards the Players' Association among the provincial unions – to the point some want the current players' share of 36.5 per cent of NZR's revenue to be reduced in the next collective agreement.
Such a backdrop, and the sizable reduction in cash investment to the grassroots game, leaves NZ Rugby with a harder proposal to pitch this time around.
The deal is, therefore, unlikely to gain the unanimous provincial support the original offer received at last year's AGM but a majority of unions would still be expected to vote in favour.
"Go on ..." the message from a female friend begins with the accompanying picture.
"Too hard," I initially reply. Before seeking more context. "What's the game?"
"RWC final versus South Africa," she says.
"Okay, well, Lomu misses out against the Boks. Didn't score a try in 12 tests against them. Richie starts, DC off the bench to hit the winning drop goal."
My reasoning? McCaw led the All Blacks to two World Cup triumphs – the first in 2011 on a broken foot. His leadership and rapport with referees – the ability to flout breakdown rules and plant seeds – was peerless.
And for those questioning Carter's ability to nail a World Cup-winning drop goal, look no further than the tense 2015 semifinal win over the Springboks, or the final against the Wallabies.
Get in touch and share your selections.
Bad start last week. Ireland did not upset France, nor did they cover my +3.5 tip in their 30-24 defeat in Paris. Incidentally all the major players, excluding Italy, obviously, have won at home two rounds into the Six Nations. We will, therefore, learn much more about France's credentials in Edinburgh next week.
Despite Super Rugby kicking off this week I'm steering clear of rugby, my usual banker, and instead suggesting a healthy $3 draw no bet option on South Africa in their first test against the Black Caps. New Zealand boast a superb record at Hagley, winning seven of their nine tests there, but without Kane Williamson and Trent Boult appear a touch vulnerable.
New Zealand's fastest, bounciest pitch won't scare South Africa, who arrive after a 2-1 home series win against India.
Devon Conway – against his former countrymen – at $3.50 to top score for the Black Caps could be worth a nibble, too, especially with the Tab's bonus back option should he finish second or third highest NZ scorer.
The rugby World Nations Championship concept seems to be gathering steam, what are your thoughts on it? Good for the game and good for the All Blacks? - Phil, Titirangi.
I like the idea, provided it has integrity in the form of promotion-relegation between the two proposed 12-team divisions. Otherwise, it smacks of the rich getting richer and the divide between tiers one and two growing. As always, the devil will be in the detail. French and English clubs have long blocked moves to establish this concept. Getting them onside remains the major challenge. A world club concept – pitting the champions of the south against the north – would be a big drawcard, too. While the Nations Championship has its lure it does risk devaluing the World Cup golden goose. Expecting three different teams to tour New Zealand in the July test window is another problematic scenario from a travel and player welfare perspective.