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Premiership rugby hails ‘landmark’ deal with equity firm
LONDON, Dec 20, 2018 (BSS/AFP) – 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 o200 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 o28.5 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.”
BSS/AFP/RY/1645 hrs