‘Massive moment’… The union reached an agreement with an investment fund for the commercial rights of the All Blacks

New Zealand Federation Football (NZR) on Thursday agreed to a €122 million deal with California-based investment fund Silver Lake, ending a two-year battle for the trading rights to the iconic company. All black.

The 89-1 vote, which gives Silver Lake a large stake in those trading rights, has been described by NZR manager Stuart Mitchell as “a monumental moment in the history of New Zealand rugby”.

The agreement provides for the creation of a trading company

“It took us a long time to get to this point, and that’s because our members care deeply about our game, our communities and our people,” he added. The agreement provides for the establishment of a commercial company, the majority of which will be owned by the union, but the American company will invest 200 million New Zealand dollars in it, in exchange for a 5.8% stake.

An additional investment of NZ$100 million will then be offered to institutional investors in New Zealand and Silver Lake’s stake could increase to 8.58% depending on the equity stake. The fund was already part of the group of investors who bought UFCand acquired just over 10% of City Football Group, owner of the club Manchester city.

Respect for values ​​and traditions

In the run-up to the vote, New Zealand’s 26 provincial leagues sought to ensure through meetings that they were not sidelined and that there would be financial repercussions for New Zealand rugby at all levels.

“Digital technologies are transforming sport and media, offering many opportunities for rugby, and we stand ready to help seize them while respecting the values ​​and traditions of the New Zealand game,” emphasized Silver Lake CEO Stephen. Evans.

Rugby is an integral part of the archipelago’s social fabric. Winners of three of the nine World Cups, the All Blacks are one of the most successful teams in world sport, but they have failed to capitalize on their commercial potential.

Invest in women’s and regional rugby

Stuart Mitchell hopes to reap the benefits of this partnership “in the next four to five years”. In return for its expertise in better promoting New Zealand rugby and the All Blacks brand internationally, Silver Lake could acquire huge commercial rights currently valued at €2 billion.

The aim of NZR is to be able to invest money in women’s rugby and regional rugby, while creating a fund to ensure the long-term financial stability of a union that has often suffered from deficits in recent years. Notably NZR suffered €20 million in losses in 2020 due to the pandemic.