'Monumental moment': US equity firm takes stake in New Zealand's All Blacks

WELLINGTON: US private equity firm Silver Lake secured a NZ$200 million (US$134 million) stake in New Zealand Rugby and its famed All Blacks on Thursday (Jun 2) after provincial unions overwhelmingly endorsed the deal following years of wrangling.

The vote by 89-1 ended a heated two-year negotiation that pitted rugby bosses against the players' association and provincial rugby unions, amid concern about selling off part of the country's culture to foreign owners.

Rugby is more than just a game in New Zealand and is seen as an integral part of the social fabric.

The All Blacks are regarded as national heroes, winning three of the nine Rugby World Cups, and are one of the most successful teams in world sport.

NZR chairman Stewart Mitchell hailed a "monumental moment in the history of rugby in New Zealand".

"It has taken us some time to reach this point and that is because our members care so deeply about our game, our communities, and our people," he said Thursday.

Right up until the vote, closed-door meetings were going on as New Zealand's 26 provincial unions sought assurances they would not be sidelined and there would be benefits for the game at the grassroots level.

The deal sees Silver Lake, a fund manager specialising in private equity investments and whose growing stable of sports interests already includes Manchester City, pay NZ$200 million for a 5.8 per cent stake in a new commercial entity operated by NZR.

An additional investment of NZ$100 million will later be offered to New Zealand-based institutional investors and Silver Lake's holding could rise to 8.58 percent depending on the share uptake.

Silver Lake is expected to provide expertise in areas such as broadcast, sponsorship and digital technology innovations.

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