Rugby: New Zealand Rugby to raise $62.5 million as Silver Lake increases ownership stake in commercial arm

New Zealand Rugby (NZR) will proceed with a $62.5 million capital raise under its existing Silver Lake underwrite, after sealing agreement with its voting members and 26 provincial unions.

The capital raise will lift Silver Lake's stake in NZR's commercial arm, known as 'NZR Commercial', to 7.5 percent from 5.71 percent, said NZ Rugby.

NZR agreed to sell the initial stake to Silver Lake for $200 million in February, after securing agreement from the players' union.

The governing body says it considered institutional investors for the capital raise, but decided the Silver Lake underwrite "provided certainty".

"NZR will now conclude the capital raise process, which has already seen investment provided to NZR Commercial and stakeholders, including over 450 community rugby clubs, as well as the rebuilding of NZR reserves post COVID-19," said NZR.

The announcement comes after reports the NZ Rugby Players Association (NZRPA) was seeking to block the raise. The players' union has not provided immediate comment.

NZR says it consulted with the NZRPA over the capital raise, but does not mention whether the union had endorsed it.

An NZR spokesperson says the governing body does not need the union's endorsement for it to go ahead.

NZR says the capital raise and the establishment of a 'Legacy Fund' with committed capital of $60 million have been the final two outstanding elements of the initial Silver Lake deal.

NZR says the fund would be set up as an endowment to further grow the game from the "grassroots up" and support annual grants for community rugby initiatives.

Reuters

New Zealand Rugby (NZR) will proceed with a $62.5 million capital raise under its existing Silver Lake underwrite, after sealing agreement with its voting members and 26 provincial unions.

The capital raise will lift Silver Lake's stake in NZR's commercial arm, known as 'NZR Commercial', to 7.5 percent from 5.71 percent, said NZ Rugby.

NZR agreed to sell the initial stake to Silver Lake for $200 million in February, after securing agreement from the players' union.

The governing body says it considered institutional investors for the capital raise, but decided the Silver Lake underwrite "provided certainty".

"NZR will now conclude the capital raise process, which has already seen investment provided to NZR Commercial and stakeholders, including over 450 community rugby clubs, as well as the rebuilding of NZR reserves post COVID-19," said NZR.

The announcement comes after reports the NZ Rugby Players Association (NZRPA) was seeking to block the raise. The players' union has not provided immediate comment.

NZR says it consulted with the NZRPA over the capital raise, but does not mention whether the union had endorsed it.

An NZR spokesperson says the governing body does not need the union's endorsement for it to go ahead.

NZR says the capital raise and the establishment of a 'Legacy Fund' with committed capital of $60 million have been the final two outstanding elements of the initial Silver Lake deal.

NZR says the fund would be set up as an endowment to further grow the game from the "grassroots up" and support annual grants for community rugby initiatives.

Reuters

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