New Zealand Rugby seals deal with US private equity firm

New Zealand Rugby secured a lucrative but controversial investment on Thursday from US private equity firm Silver Lake after allaying fears from the players' union that the deal risked tarnishing the famed All Blacks' legacy.

The partnership will see Silver Lake put NZ$200 million ($134 million) into a joint commercial entity, which will remain majority-owned by New Zealand Rugby.

Institutional investors will be given the opportunity to purchase a further NZ$100 million stake later this year, although New Zealand Rugby will retain ownership of around 90 percent.

New Zealand Rugby described the deal as "transformational" for the cash-strapped body, ensuring financial stability and providing money for priorities such as women's and grassroots rugby.

"This partnership presents rugby with an extraordinary opportunity to secure its future and unleash its true potential - we are truly excited by what we can achieve together with Silver Lake's world-class capabilities," New Zealand Rugby chief Mark Robinson said.

It follows almost two years of sometimes acrimonious negotiations when the New Zealand Rugby Players' Association threatened to veto the deal.

NZRPA chairman David Kirk, who last year told AFP he feared the investment would result in the All Blacks being sold out to commercial interests, said he now supported the partnership.

"The agreement provides capital on a sound economic basis," he said.

New Zealand Rugby chairman Stewart Mitchell acknowledged the tensions but was satisfied his organisation had met its responsibilities as "guardians of the game".

"The journey to get here hasn't been easy at times, there was healthy debate and some adjustments by all parties but always with the good of the game at the heart of this