Premiership Rugby hails ‘new era’ after announcing partnership with investment firm CVC
Premiership Rugby’s Chief Executive Mark McCafferty said the deal was agreed unanimously by all clubs
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Your support makes all the difference.Premiership Rugby has announced a partnership with private equity and investment advisory firm CVC Capital Partners. The investment is believed to have been in the region of £200m for 27 per cent of Premiership Rugby, valuing the league at £740m. An initial offer for 51 per cent in September was rejected by clubs.
The move will take Premiership Rugby into a “new era”, with the investment expected to be completed in the first quarter of 2019.
“Around 18 months ago the Board endorsed a strategy to take club rugby to a new level,” said Premiership Rugby’s Chief Executive Mark McCafferty, who confirmed the investment deal was agreed unanimously by the clubs.
“Since Premiership Rugby was formed in 1997, our owners have invested more than £400 million to build up the clubs and the competition which today sees the Gallagher Premiership broadcast in over 200 countries around the world. It was the perfect time for us to identify the right partner to help accelerate our next phase of growth.
“We are delighted to have partnered with CVC, a company which has a very impressive track record of helping to grow sports businesses such as Premiership Rugby. Further developing the global appeal and following for the Gallagher Premiership through investment in the product and fan experience is one of the main priorities for the partnership.”
Premiership Rugby has grown rapidly over the last decade with commercial income rising by more than 80 per cent in the past five years.
Ian Ritchie, the chairman of Premiership Rugby added: “We have agreed that the proceeds from CVC Fund VII’s investment will be re-invested to drive continued growth in the sport, for the benefit of the fans, Clubs and players. The structure of the deal ensures that there is strong alignment of interest between CVC and the Premiership Rugby Clubs. CVC support our vision of growing the sport and we are looking forward to working closely with them to take Premiership Rugby to the next level.”
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