Silver Lake buying a stake in the ABs?
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cool to see the Otago Chair pretty pretty open about things
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Pay-walled:
Top All Blacks block $465 million deal in explosive letter to New Zealand Rugby
A more correct title would have been "NZRPA to block $465 million deal in explosive letter to New Zealand Rugby".
Some snippets:In an explosive letter sent to NZ Rugby directors and clubs, obtained by the Herald, the New Zealand Rugby Players' Association (NZRPA) expresses serious concerns over an offer to sell a 15 per cent stake in the organisation's commercial rights to United States technology investment giant Silver Lake.The lengthy feedback, sent to NZR directors and clubs in late January, details concerns about "capital and expertise", "control" and "risk" and urges that alternative capital raising approaches such as government or public bonds be explored.The country's 26 provincial unions are set to vote on the deal - that would see the creation of a new separate entity dubbed CommercialCo - at an NZR board meeting next month. The Herald understands a sale ratio between 10 to 15 per cent will be agreed on Monday. As part of the collective bargaining process, however, NZR requires the NZRPA's approval to sign off on the deal. This is where a major standoff has ensued.The Herald can today reveal that $40m of the Silver Lake deal has been initially earmarked for immediate injection into the New Zealand game – 75 per cent of which would go to community level and shoring up balance sheets – with a proposal for the players to receive $6.5m. "From the players' perspective they are probably the one group that will be fine," Nichol said. "This is not about the players and what they earn, it's very much about is this the right thing for New Zealand rugby? Whatever is right for NZ rugby will ultimately benefit the players anyway.Constitutionally NZ Rugby requires 50.01 per cent support from the provincial unions to pass the deal but is seeking a more significant mandate. On the basis of the PWC report, the provincial unions are expected to largely vote in favour, which would leave the NZRPA kingmakers.(...) the NZRPA acknowledges the need to raise revenue. But it instead advocates hiring outside expertise, rather than selling a stake in the national game. It says NZR does not need to sell 15 per cent of income-generating assets, especially at a high cost of capital, to rebuild depleted reserves and grow revenue streams. "All of these ends can be achieved by accessing much cheaper capital, proceeding with the creation of a separate CommercialCo, hiring and incentivising world-class talent and engaging sports service providers directly," the letter states.The letter also claims that in future it is certain there will be a "divergence of interests" between Silver Lake and NZR, and that conflicts of interest will arise when the US firm inevitably invests in other national unions such as Australia.Listing risks, the NZRPA suggests the deal could change the nature of the relationship between supporters and their national teams, and cites concerns around the potential sale of Māori and Pasifika culture woven within NZ Rugby."The risks all arise because of the irrevocability of a sale of equity in NZR's income-generating assets. It is clear that once a share in the assets is sold it will never be bought back." -
Full text of the letter is here
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@booboo isnt that what the injection of cash is likely to do anyway, particularly at M10 and dev level?
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@taniwharugby said in Silver Lake buying a stake in the ABs?:
@booboo isnt that what the injection of cash is likely to do anyway, particularly at M10 and dev level?
This is RUPA. What does P stand for? They want more for themselves.
A bigger cut.
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This is an excellent letter. We should all be appalled by the idea that we sell NZ Rugby for capital. From what I have read Silver Lake will do nothing that someone else couldn’t do - well put in the letter. They are nothing special. Just a company selling a marketing idea and taking a permanent click of the ticket. Who exactly is taking the risk here?
I am reminded of all the infrastructure deals that groups like Macquarie set up. All that happened was the public paid more for these services, operating companies made money, and the risks remained with Governments and Councils.
Greed is not good. This just smacks of greed.
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465 mill into NZ rugby opens up a huge amount of opportunities and Silver Lake will undoubtedly look to raise the awareness of the All Blacks in the USA. Both are fantastic opportunities to help keep players local as well as upgrade a lot of the infrastructure which has been left behind.
BUT.
US Venture capital firms are slave driving, ruthless as fuck, money before everything else arseholes. IT won't be long before the AB's are 20 tests a year, and everybody is driven into the ground with literally zero regard / respect for anything NZ culture based, unless there is a buck in it.
I don't know if there is a better way though, but beware the poisoned chalice.
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@majorrage said in Silver Lake buying a stake in the ABs?:
465 mill into NZ rugby opens up a huge amount of opportunities and Silver Lake will undoubtedly look to raise the awareness of the All Blacks in the USA. Both are fantastic opportunities to help keep players local as well as upgrade a lot of the infrastructure which has been left behind.
BUT.
US Venture capital firms are slave driving, ruthless as fuck, money before everything else arseholes. IT won't be long before the AB's are 20 tests a year, and everybody is driven into the ground with literally zero regard / respect for anything NZ culture based, unless there is a buck in it.
I don't know if there is a better way though, but beware the poisoned chalice.
And it's not even a company like Adidas who at least have history in the sport. The Robinson era has been one misstep after another
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I've the feeling that NZR is using media tactics to get everyone behind the Silver Lake deal.
It threatens provincial unions with huge bills if they don't agree with changing the format of the Mitre 10 Cup.
They use it in discussions about a women's SR competition.
Now, apparently, Robertson staying in NZ hinges on that deal. What have they told him?I smell dirty politics ....
What about alternatives to the Silverlake deal? Have they thought of any or is this the only horse they're betting on? -
@stargazer There's media tactics on both sides.
You've got this players letter suddenly coming out the press in the last week despite the fact it was sent in late January.
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@kiwimurph said in Silver Lake buying a stake in the ABs?:
@stargazer There's media tactics on both sides.
You've got this players letter suddenly coming out the press in the last week despite the fact it was sent in late January.
that shit was nasty.
Players don't need to be in the media doing that. I am downright concerned about venture capital getting a stake in the ABs.
If it goes well, you get a Ports of Tauranga situation - good discipline, build markets, get expertise and contacts we just don't have. Overall really beneficial.
If it goes poorly, you screw the game, and you can't easily come back from it.
the consequence of going poorly worries me. You bet big with that stuff, and I'm not sure it's a good bet. Staying indepednet and self determining is really important I reckon
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Hard to fathom the protests of All Blacks who are happily bankrupting their governing body
What’s not in dispute is that NZR cannot continue to pay its mammoth player wage bill and that alternative revenue streams are required.
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@booboo said in Silver Lake buying a stake in the ABs?:
Hard to fathom the protests of All Blacks who are happily bankrupting their governing body
What’s not in dispute is that NZR cannot continue to pay its mammoth player wage bill and that alternative revenue streams are required.
Well that is a completely unhelpful take.
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@kirwan said in Silver Lake buying a stake in the ABs?:
@booboo said in Silver Lake buying a stake in the ABs?:
Hard to fathom the protests of All Blacks who are happily bankrupting their governing body
What’s not in dispute is that NZR cannot continue to pay its mammoth player wage bill and that alternative revenue streams are required.
Well that is a completely unhelpful take.
Is Hamish Bidwell a pseudonym for Mark Robinson?
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I am ok with the players letter. Did Management check with stakeholders prior to making the deal public? Doesn't sound like it. There might be urgency to do something but there is no emergency. Stop the drama and threats and start talking. Mark Robinson got it wrong with Super Rugby and he has got this process wrong again.
Ex Rugby players like Kirwan who have made money out of the professional game have added nothing to the conversation. No detail no facts just some opinions.
Wayne Smith was at least balanced last night.
