Silver Lake buying a stake in the ABs?
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This depresses me so much, that I haven't read anything much about it, or considered the alternative if dont take PE.
I'm against it.
I curse foreign leagues and unions with government bailouts and their own PE deals making this race to shittery necessary.
I'm just slowly disengaging from the sport.
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@mofitzy_ said in Silver Lake buying a stake in the ABs?:
@pakman
Sure, but Silverlake would have a vested interest in NZR succeeding, so it could be a mutually beneficial agreement.Not against Silver Lake, per se. Just better to structure more partnership style limited term venture and take less up front. If things work the money will take care of itself.
If not, priority to be able to ensure a clean break.
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If the deal goes ahead, it will be interesting to see the breakdown of income streams in years to come and whether it lives up to the hype.
NZ Rugby is already largely comprised of its commercial operations. Its 2020 accounts will get filed at this month’s annual meeting –scheduled for the 29th – where the unions will vote on whether to agree to a final proposal. In calendar 2019, the national union generated income of $187.1 million, of which $57.5m was from broadcasting rights, $72.9m from sponsorship and licensing, and $16.4m from matchday takings. $27.9m of other income largely came from the union’s $20.2m of Rugby World Cup grants and $5m from NZ government grants. Of its $194.5m expenditure that year, $54.2m went to the national teams, $92.3m to competitions and $14.1m on administration. Another $33.3m went to game development through NZ Rugby’s distributions to the 26 provincial unions. In 2018 and 2019, that sets the commercial operations cost base at about $150m, with commercial income of almost $170m in 2018 and $147m the following year. How that will actually look under a new model hasn’t been ironed out yet, with the prospective deal with Silver Lake still just a proposal.Source: https://businessdesk.co.nz/article/finance/the-missing-silver-lake-link-and-all-blacks-ltd
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@mofitzy_ said in Silver Lake buying a stake in the ABs?:
@pakman
Sure, but Silverlake would have a vested interest in NZR succeeding, so it could be a mutually beneficial agreement.I was also thinking this. The return on their investment is heavily dependent on the ABs success on the field. The value of the brand would collapse if the ABs went the way of Wales in the 90s and 00s.
But are the Yanks aware of this? They have iconic sporting teams in the US that are cash cows regardless of their success (look at the Nicks). Same probably applies for the top PL soccer clubs.
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A statement on behalf of the Heartland unions was sent to media on Friday afternoon:
Today, all 12 Heartland Provincial Unions want to unanimously express their public support for the proposed Silver Lake partnership with NZ Rugby. “We believe it is time for our views to be heard because rugby for all of our players and participants starts in our communities and Heartland Rugby is all about community rugby. “The grassroots level of the game is the cornerstone of rugby in New Zealand and we see the Silver Lake partnership with NZ Rugby, vital in ensuring community rugby survives” said Heartland Secretariat, Chairperson, Bridget Belsham. As custodians of the community game in their individual regions, the Heartland Provincial Unions represent a significant number of Clubs & Schools. Funding is required to ensure the important development pathways and participation programmes are available to support & grow the game in our regions. Rugby is facing immense challenges and investment into the community game must happen now. There are more than 150,000 rugby players in New Zealand and millions of fans. “We believe this opportunity deserves our unconditional support and is required to secure the long-term future of rugby in our country”. -
i find that reassuring
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Here is the full article on Stuff.
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The furore over the breakaway six in UK football is a window into the issues.
For big money the objective is to recruit international fans. The problem is that they want to watch the big ten countries play each other and aren’t so interested in Super rugby etc. And playing in Europe more practical than on other side of world.
The original fan base is easily disenfranchised.
Rather we throw our lot in with Japan.
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Former NZ Rugby boss fears ultimate cost of Silver Lake deal
Meaningless exhibition games for the All Blacks and a greater stake in New Zealand Rugby will be the ultimate outcome of the proposed $460 million deal with US tech giant Silver Lake fears a former head of New Zealand Rugby. Next week's New Zealand Rugby AGM will vote on whether to proceed with the proposed $460 million deal which would give Silver Lake a 15 percent stake in the game. But David Moffett, who was chief executive of New Zealand Rugby between 1996 and 2000, struggles to see where the value for Silver Lake is. "Silver Lake are not benefactors. They are not going to pump a whole lot of money into New Zealand Rugby without expecting a return (so) I am struggling to see how they can increase the revenue return to NZR and ultimately themselves that New Zealand Rugby haven't been able to do on their own," Moffett said. "After all, they (NZR) are the biggest rugby brand in the world. They are right up there with Manchester United and some of those other great sporting brands. "There wouldn't be a door that (CEO Mark Robinson) couldn't open to talk about raising money... so what happens if this doesn't work out?" The backlash from football fans in the Britain and Europe over the now suspended European Super League should also be a warning sign, Moffett said. "Clubs have sold their souls and then had to do complete backflip." But Moffett accepted the NZR was caught between a rock and a hard place in trying to secure its financial future "just like every rugby union in the world". "Even prior to Covid things were looking pretty difficult especially with the implosion of Super Rugby which was going to happen irrespective of Covid because they couldn't make up their mind just what sort of format it was going to take and people were turning off in droves and I hope for New Zealand Rugby's sake they have chose the right path to go down." If the deal did not lead to more flowing into grassroots rugby "it could have the opposite effect and that would be terrible", Moffett said. Under the proposal, Silver Lake will essentially get a 15 percent stake in the new commercial rights company that would be established, but Moffett felt Silver Lakes influence would translate to more than that. "If (Silver Lake) don't get the return they expect, they may very well say we want a bigger percentage and a bigger say. "Because if they don't get the return that has been worked out, because spread sheets are one thing but delivery is another, then they will be looking at ways at which they can and... the first place they will look at is how many times can we get the All Blacks to play and where they can get them to play. "Will it be exhibition matches in the United States for example? But whether it's now or in the future you will see the All Blacks playing more games and perhaps more meaningless games and that just devalues the greatest brand in rugby." -
@stargazer good god there is name I was happy to forget.
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@kirwan said in Silver Lake buying a stake in the ABs?:
@stargazer good god there is name I was happy to forget.
He does occasionally make sense post his involvement in actually running the game.
Was more than happy to see the back of him. He was no Chris Moller or Steve Tew.
On the other hand he was no David Rutherford.
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@kirwan said in Silver Lake buying a stake in the ABs?:
I'm starting to appreciate Tew more and more. We had bad management before him and it seems after him these days.
Appallingly bad decisions. Directly approaching Australian super franchises still makes me shake my head
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@kirwan said in Silver Lake buying a stake in the ABs?:
I'm starting to appreciate Tew more and more. We had bad management before him and it seems after him these days.
I thought Moller was good, and the pair of them made a good team.
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@stargazer said in Silver Lake buying a stake in the ABs?:
"Because if they don't get the return that has been worked out, because spread sheets are one thing but delivery is another, then they will be looking at ways at which they can and... the first place they will look at is how many times can we get the All Blacks to play and where they can get them to play.
Not sure if Moffat is entirely correct here.
The amount of money talked about is large to us (and in rugby terms) but is chickenfeed compared to other sports entities and commercial investments worldwide to a company like Silverlake.
My guess is that the proposal is a strategic long term one more than being based on an expected annual return.
Places them with a finger in the pie of another global brand to add to their portfolio.Now let's say that post COVID Amazon decides to shake up the sports broadcasting rights sector. They are simply waiting for the equivalents of SparkSport around the world to do the normalising for them IMO. Silverlake is making strategic investments in various places to hold some power in those changes and reap the rewards.
Whether that benefits NZ Rugby I don't know. We may get swept along in something with less say than we would like.
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I think Moffitt is on the money with his approach. Surely NZRU can open the doors of opportunity themselves without selling out their control for someone else to. Ultimately the players collective will determine where things move and NZRU must work closely with them as their primary partner I believe or the compromises will become intolerable.
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@arhs said in Silver Lake buying a stake in the ABs?:
I think Moffitt is on the money with his approach. Surely NZRU can open the doors of opportunity themselves without selling out their control for someone else to.
Maybe NZR have tried to do exactly that but haven't found any interested parties that were prepared to pay $400M+. So this is the best offer available, despite the risks.
