Sports Minister Grant Robertson is urging all parties to work together for the good of the game, as New Zealand Rugby (NZR) prepares for a vote on a multi-million dollar deal.
Sports Minister Grant Robertson. Photo: RNZ / Dom Thomas
NZR needs the backing of more than 50 percent of the country's provincial rugby unions at today's AGM, along with the approval of the New Zealand Rugby Players Association, for private equity firm Silver Lake to take a 12.5 percent stake in NZR's commercial interests.
The deal is worth $387.5 million for NZR.
Read more: The Silver Lake offer explained
Sports Minister and Deputy Prime Minister Grant Robertson said there were different views inside the rugby community about the deal, but NZR would in all likelihood resolve to support it.
"New Zealand Rugby has been working hard on it, trying to establish what it believes is a more secure financial base for the sport," he told First Up.
"Some of the details that are now emerging show the provincial unions will be getting some slice of the extra money that might be coming in, but other details are still a little bit unclear.
"And obviously on the other side of the equation you've got the Rugby Players Association who are concerned about both the salaries that the players get but also some other issues like protection of cultural icons such as the haka."
It was going to be a challenging issue for NZR to work through, Robertson said.
New Zealand Rugby chair Brent Impey. Photo: Photosport
NZR chairman Brent Impey said if the deal did not proceed because of the Players Association stance it would be "the biggest own goal in the history of New Zealand sport". He said mediation between NZR and the players association was ongoing and the players would not support the deal at the AGM.
"I'd just urge all parties to work together for the good of the game at the grass roots," Robertsons said.
"The Players Association has made the point that players want to be closely consulted, they're there to protect the welfare of players, wanting to know what it means for the individual elite players, and they're also concerned about some of the cultural issues that go beyond rugby as a sport.
"I'm certain New Zealand Rugby will be mindful of those matters. There is mediation in place. I just encourage both parties to continue talking because for the good of the game we need our elite players to be well looked after, happy to be playing here, and carrying on supporting the next generation coming though."
New Zealand Rugby was hit hard by the effects of the Covid-19 pandemic, losing $40 million, close to half their cash reserves.
AUT senior lecturer in sport management Richard Wright said the deal would not touch cultural elements such as the haka "because that's what's made the brand so powerful, so valuable".
"They're not coming in to change the product, what they're trying to do is seeing how many people they can get the product in front of," he told Morning Report.
Rugby was a small market and the question was how much more media exposure it could attract with the All Blacks playing at most 15 games this year.
"Rugby is quite a small market, different to Formula 1 or football which are global sports.
"To get that return on investment they're going to want to see the All Blacks playing and that ABs brand as much as possible."
The All Blacks brand is much bigger than rugby itself because of its unmatched winning record, he said.
Former New Zealand Rugby chief executive David Moffett agrees the All Blacks brand is global even though rugby is a niche sport.
He was concerned the deal would mean more fixtures for the All Blacks which risks "diluting the brand and the aura."
Former Black Fern Louisa Wall said rugby needed revenue and the Silver Lake deal was a "no-brainer" for New Zealand Rugby.
"I've been listening to quite a few of the provincial unions, and they need the investment, so if this provides an injection of cash for that infrastructure and then some ongoing revenue stream then from my perspective it's a no-brainer."
The Silver Lake offer would be for a share in a newly created NZR entity, likely to be called CommercialCo.
In 2019 the California-based private equity firm acquired a 10 percent stake in City Football Group (CFG), which owns reigning English Premier League champions Manchester City and teams in the United States, Australia and China.
