The PRO14 in takeover talks with private equity firm

Discussion in 'Guinness Pro14' started by snoopy snoopy dog dog, Jan 19, 2019.

  1. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    Full article here: https://www.rugbypass.com/news/exclusive-the-pro14-in-takeover-talks-with-private-equity-firm

    There were rumours of this a few months ago as part of a wider power play by CVC who are also looking to have a slice of Agustin Pichot proposed new international World Rugby leagues.

    Rugby is massively undervalued here as a sport. Maybe introducing a partner to look after commercial rights is the thing to do. Take the NRL as a comparison. Australia and New Zealand have a combined population of just over 30m, yet it garners a TV contract over 5 years of over €1bn. The Pro 14 has a combined population of about 130m yet get a fraction of that revenue. There are other factors at play in that international rugby and EPCR add to the pot but there's still massive scope for growth.

    I'd imagine if CVC or another partner were brought on board, they'd put pressure on the SARU and FIR to have teams in larger cities. Could we see Zebre, for example, move to Rome or Super Rugby teams from Jo'burg, Cape Town, Pretoria or Durban move north? CVC have previously shown they'll follow the cash by shifting the emphasis on the Formula 1 circuit to Asia and emerging markets there.
     
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  3. TRF_Olyy

    TRF_Olyy English Arrogance

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    I was told only the English are interested in making money and we're all evil because of it.
     
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  4. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    There's nothing wrong with making money, most reasonable people would think as much. The critics of the cash injection to the Premiership shareholder clubs are looking at it from a position of self interest. More money for them means it's harder to hold onto our players basically.

    Fair play to the Premiership for their deal with CVC. It's up to the Pro14, Top14 and Sanzaar to try combat it so their top players aren't raided en masse.
     
  5. Amiga500

    Amiga500 Senior Member

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    NO NO NO NO.

    A fuKKing disaster if this comes to pass.


    When will people cop on that vulture f*kking capitalists do not give 2 fiddlers f*kks about the long term health of the game - as long as they get their pound of flesh in the next few financial quarters.
     
  6. Amiga500

    Amiga500 Senior Member

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    Seriously?

    If CVC get their way, the English Premiership would become a closed shop - and players would not be playing for England. As for money toward grassroots development - no chance.


    CVC ran F1 into the ground.
     
  7. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    Formula 1 paid out $940m to it's 10 teams in 2017. If that's running it into the ground, sign me up. They took it off terrestrial TV and onto subscription services. Rugby did this 20 years ago. CVC chased money in Asia to increase revenue. The Pro 14 chased money in Africa to do likewise.

    Saying Premiership teams don't want their players playing for England is hyperbolic. They do, they just want to be fairly compensated for it. Their owners aren't philanthropists, they're businessmen. It's the RFUs job to grow the game, not a private 13 team clique.

    The Pro14 is a multi country competition which has the potential to grow beyond it's current borders to increase revenue streams. If bringing in investors with a track record of growing beyond their current base helps them do so, that's a good thing. CVCs investment in the Premiership has changed the landscape so there's no point burying our heads in the sand and hope it goes away. The Pro14 needs to be creative or else rugby in Ireland, Scotland, Italy, Wales and South Africa will be left behind.
     
  8. mdaclarke

    mdaclarke Senior Member

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    I assume you mean that the Super Rugby teams would still play in their cities but in the Pro 14 instead of Super Rugby, instead of the Super Rugby teams relocating to to the Northern Hemisphere (eg Lions playing in London, Bulls Playing in Birmingham etc)?
     
  9. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    Yep.
     
  10. Bruce_ma_goose

    Bruce_ma_goose Senior Member

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    I don't know enough on the topic to hold a strong opinion, but, as I often seem to do on matters of finances I find myself agreeing with SSDD, purely to avoid player drain.

    My instinct is that there is little to be feared by having some of the Pro14 unions have a more hands off approach to the competition and give more control to experts in commercial growth.
     
  11. Amiga500

    Amiga500 Senior Member

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    Yep - and viewing numbers have dropped off - so team sponsorship has dropped off. Now, the teams are a hostage to the TV deals.

    Furthermore, due to the law changes on their watch - the price of running a team for a year is now astronomical. $100m a year doesn't look at it bar just about making it to the grid and embarrassing yourself at the back.
     
  12. Amiga500

    Amiga500 Senior Member

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    That is a similar mindset to the property boom. You need to get on the ladder regardless of how mad it is.

    Sure Dublin is now back at astronomically high prices and it can only burst again - probably fairly soon. When all the little cogs in the machine cannot afford to live in the city or commute into the city - what happens?
     
  13. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    Nothing like it. The Irish model is built on growing their own players and holding onto them, not bringing in a team of imports. If Premiership clubs want to make a mistake and use the CVC money on foreign players, that's their choice. It doesn't follow that Pro14 teams will. They can invest in coaching and facilities for young players to bring through to the first team.
     
  14. Amiga500

    Amiga500 Senior Member

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    Who is they?

    The league owners would be on a crash course with the IRFU and provinces over not playing the "big names" week in week out (aka flogging them like England/France).

    The league owners won't give two flying f**ks about youth players - they'll want big names for big TV deals. Particularly CVC as they essentially operate on a pump'n'dump principle.
     
  15. snoopy snoopy dog dog

    snoopy snoopy dog dog Senior Member

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    "They" are clearly the Unions as it is their remit to grow the game. It will continue to be their remit even if there is outside investment.

    What the Premiership do is the Premierships business.

    Investors can't influence team selections.
     
  16. munstermuffin

    munstermuffin Senior Member

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    Lads people miss the whole point. The IRFU run a steady ship regarding wages. Like I think Premiership relies more on A league to develop where IRFU develop more in Pro14 but do it while winning. Like it's rare provinces aren't fighting for qualification at business end
     
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