Rugby Australia open to private equity proposals

"The RA [Rugby Australia] board met last week and has approved a pathway forward to private equity proposals," Hamish McLennan, the organization’s chairman, told The Australian. "We are tidying up a few loose ends with potential advisers and this will have the potential to chart an incredibly exciting period for rugby in Australia."

Rugby Australia reportedly posted a loss of A$10 million ($7.7 million) in 2019 following reduced match revenues, a less lucrative broadcast deal, and the loss of Qantas as a sponsor. Last year was challenging for sports organizations globally as leagues were suspended and only resumed with matches played behind closed doors or in front of small crowds.

The Super Rugby tournament, which is controlled by the sport’s governing bodies in South Africa, New Zealand, Australia, and Argentina, was cut short and replaced by domestic tournaments. However, Australia was able to host the Rugby Championship, contested by the same nations at international levels, albeit without South Africa, later in the year with crowds in attendance.

Private equity interest in professional sport revolves around more effective monetization, notably through branding and broadcast rights. CVC Capital Partners has minority stakes in the bodies that run domestic rugby leagues in England, Ireland, Scotland, and Wales. The GP is said to be finalizing a deal to invest in the Six Nations, Europe’s premier international tournament featuring England, Scotland, Wales, France, and Italy.

Meanwhile, it has been widely reported that Silver Lake has offered $340 million for a 15% interest in the commercial arm of New Zealand Rugby. The private equity firm already has an interest in sports and other live events in Australia and New Zealand through TEG, a ticketing business and events promoter.

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• Topics
• Australasia
• Media
• Expansion
• Australia
• Silver Lake