Introducing Rugby Australia Private Equity to Public Brokers
Rugby Australia President Hamish McLennan will attend a meeting with the most influential brokers in rugby on Thursday and advocate for the game’s governing body to sell a significant private equity stake.
McLennan, RA Managing Director Andy Marinos and the president and general managers of each member state union will spend Thursday and Friday discussing the biggest issues facing the game.
Topping the list will be the proposed sale of a 10-15% share of the game’s commercial rights to private equity, which will raise money close to the $ 387 million New Zealand Rugby generated. by their agreement with Silver Lake.
McLennan admitted that in an ideal world, RA wouldn’t have to consider a private equity deal. But after recording a loss of $ 27 million in the last fiscal year, the game has little choice.
However, that did not stop McLennan from declaring that the investment had the potential to be “the best of all time.”
“We will be discussing the pros and cons of the private equity process and have a high level discussion of the percentages and potential returns and get their much appreciated input on what is good for the game,” McLennan said.
“Most connoisseurs understand that we need external investments. It’s important to note that the turntables are cleaned quite well – despite another COVID shock. We think everything is positive from here on out. It could be the best investment ever, while the game is on. “
McLennan and RA have mapped the finances of the game through 2025. They will take advice from states at the two-day conference before deciding exactly how much they are looking for from private equity firms.
While states will have a say, sources with knowledge of the package that will be offered to private equity firms told the Herald the tender documents will likely include a range of options, including 10 percent and 15 percent stakes.