NZR finally get Silver Lake deal across the line

New Zealand Rugby and US equity firm Silver Lake have agreed on a deal worth up to $300 million deal.

Under the terms of the agreement, which remains subject to ratification by the Provincial Unions and Māori Rugby Board, Silver Lake will invest $200 million in a new commercial entity that will control all revenue-generating assets of NZR.

The entity will be called CommercialCo and remain under the control of NZR.

An additional co-investment of up $100 million will be offered to New Zealand-based institutional investors later in 2022.

At the conclusion of the additional co-investment, Silver Lake will own between 5.71-8.58% of NZR CommercialCo, representing $200-300 million investment, depending on capital needs and the uptake of New Zealand-based institutional investors.

It’s a drop in the initial proposal which was to be 10-15%.

The NZR says the decrease in Silver Lake share from the initial proposal has been countered with an increase in valuation driven by the improved future financial outlook from broadcasting and sponsorship.

“This partnership presents rugby with an extraordinary opportunity to secure its future and unleash its true potential,” said NZR chief executive Mark Robinson.

“We are truly excited by what we can achieve together with Silver Lakes world class capabilities: from fostering and growing our grassroots, to enhancing the experiences we can create for New Zealanders, and truly maximising our potential on the global stage.”

Silver Lake will remain a minority investor and NZR will retain full control over rugby as well as the commercial strategy.

Photo: Silver Lake

The new NZR CommercialCo entity board will be controlled by NZR and will comprise a new independent chair, and other independent directors.

The New Zealand Rugby Players Association will also have a seat on the NZR CommercialCo board.

Silver Lake, NZR and NZRPA will also through “Global Rugby Opportunities” (GRO) invest in global rugby and rugby-related technology businesses, earning NZR and NZRPA a 15% share of the profits of GRO (split 50/50) in return for their contribution of sports expertise, know-how and relationships.

-RNZ