NZ provincial unions to vote on Silver Lake deal next month

SYDNEY : New Zealand Rugby (NZR) has called a special general meeting in Auckland on June 2 to allow member unions to vote on a private equity investment from U.S. firm Silver Lake, the last step in the approval process for the groundbreaking deal.

The deal, which values NZR's commercial assets at NZ$3.5 billion ($2.21 billion), would see Silver Lake take 5.71 per cent-8.58 per cent of a new commercial entity following an additional co-investment offered to New Zealand institutions later in the year.

The 26 provincial unions will receive less cash compared to Silver Lake's previous offer of NZ$387.5 million for a 12.5 per cent stake a year ago, which was rejected by the players union.

The path was cleared for the revamped deal to go through when NZR struck a deal with the players in February.

The vote was originally scheduled to take place at last month's annual general meeting but the provincial unions requested more time to study the detail of the new deal.

NZR, whose finances have been buffeted by the COVID-19 pandemic, feel they need the cash injection to keep pace with northern hemisphere rugby powers who already have equity deals in place.

It remains controversial, however, with some New Zealanders resistant to the idea of any level of foreign ownership of the famous All Blacks brand.

($1 = 1.5865 New Zealand dollars)