Rugby

Premiership rugby hails 'landmark' deal with equity firm

2018-12-20 12:54
Rugby ball (File)

London - Premiership Rugby hailed a "landmark" deal with CVC Capital Partners on Thursday after the private equity firm acquired a reported 27 percent stake worth more than 200 million ($254 million).

CVC, which had previous involvement in MotoGP and Formula One, initially sought a majority shareholding but that was rejected by the umbrella organisation for the English Premiership.

The clubs voted unanimously to accept the new deal, with the funds raised earmarked for developing facilities and stadiums and expanding the competition into new markets rather than paying increasing players' wages.

Member clubs will benefit from a multi-million cash injection, according to reports. Premiership clubs recorded losses of a combined 28.5 million in 2016/17.

"Premiership Rugby confirms a landmark new partnership with leading private equity and investment advisory firm CVC Capital Partners," said a statement.

"The investment... into Premiership Rugby marks the start of a new era for English professional club rugby."

"We're happy that CVC's track record speaks for itself," said Premiership Rugby chief executive Mark McCafferty.

"They were in MotoGP for eight years and only came out of that because of the requirements for moving into Formula One. They were in Formula One for the best part of 10 years.

"They are expecting to be in this for the long term and they understand what's required to invest and build."

McCafferty said the investment will help to broaden the appeal of the competition both at home and abroad.

"I expect Premiership Rugby in seven or eight years' time to be an even more globally followed business. That expansion needs support," he said.

"The clubs see this as a way to accelerate growth and bring new fans into the game and opening up audiences."

"We have a salary cap in place and that's not moving for the next couple of years," he added. "We are investing in operations and infrastructure, that's the key."

Read more on:    rugby

 

Read News24’s Comments Policy

Live Video Streaming
Video Highlights

 
 
Men
Women
Love 2 Meet
English Premiership flutter

Take Sport24's "expert" tips at your peril...

Featured

The 2018/19 Absa Premiership season is in full swing. Will Mamelodi Sundowns retain their title? Or can one of Kaizer Chiefs, Orlando Pirates, Wits, SuperSport United - or another team perhaps - snatch glory from the Brazilians? Be sure to visit Sport24 for all the latest news!

Latest blogs
Vote

Following the conclusion of the various end of year tours to Europe, who is your favourite for the 2019 Rugby World Cup title?

Twitter Follow Sport24 on Twitter

Facebook "Like" Sport24's Facebook page

WIN Enter and win with Sport24!

BlackBerry Stay in the loop on your BlackBerry

RSS Feeds Sport news delivered really simply.

 
There are new stories on the homepage. Click here to see them.