Whanganui Rugby Football Union welcomes $200 million Silver Lake deal

Whanganui's Campbell Hart on the charge against Wairarapa Bush last season. Photo / Lewis Gardner

The Whanganui Rugby Football Union will soon have an extra $500,000 in its coffers.

On Thursday the country's provincial unions voted overwhelmingly in favour of New Zealand Rugby's $200 million deal with US investment firm Silver Lake, with a final tally of 89 for and one against.

A total of $6 million went to the country's 12 heartland unions, and Whanganui Rugby Union chief executive Bridget Belsham said its share would be "going in the bank" for the moment.

"We have been quite vigilant with the funds we do get, so what we've decided to do is add the money to our cash reserves.

"We are the custodians of the game in Whanganui so we need to make sure that where we invest the money will benefit and grow the game."

It wasn't just the Whanganui Rugby Football Union that would benefit from the deal, Belsham said.

"Our clubs will get anywhere between $10,000 and $20,000 each, depending on numbers.

"We will be working closely with them around that short-term, sustainable investment."

The money given to clubs comes from additional funding, not from the $500,000 allocated to the union.

"There will also be a legacy fund which starts off at around $60 million and the money generated off that will be invested into the community game," Belsham said.

"That was probably a massive part of the deal that the unions were pushing."

Whanganui Rugby Football Union chairman Jeff Phillips. Photo / Bevan Conley

Whanganui Rugby Union chairman Jeff Phillips was on hand at NZ Rugby's Auckland headquarters to cast the vote.

He said New Zealand Rugby would have key performance indicators (KPIs) around what unions could and couldn't do with the cash.

"The money is not to be frittered away.

"Whanganui needs to build its reserves up again. Covid hit everyone pretty hard."

While he was happy with the outcome of the vote, it was the first step in a long process, Phillips said.

"Now we need to make sure the commercial board that's being formed is up and running from day one and generating revenue.

"We have placed our faith in them to do this job and now it's up to them to do it.

"Overall, it's positive for rugby. Money is going to come back to our clubs and it's going to help strengthen the game around the regions.

"Our concern is grassroots rugby and making sure kids are doing something."

Belsham said it was "the biggest decision in New Zealand rugby for 130 years".

"It's awesome to get the money.

"We are going to make sure we grow the game and that people are enjoying it in our community."