The final hurdle allowing New Zealand Rugby to sign a $200 million deal with US private equity firm Silver Lake has been cleared.
NZR chair Stewart Mitchell says the deal is the start of a new era for rugby in this country. Photo: PHOTOSPORT
At a special general meeting in Auckland this afternoon the 26 provincial unions and the Māori Rugby Board voted in favour of the deal - the last piece in the jigsaw the NZR needed to get the deal across the line.
The proposal was approved, with 89 votes for and one against.
The vote was by secret ballot, at the request of two of the unions.
The deal will see Silver Lake invest $200 million in a new commercial entity that will control all revenue-generating assets of NZR.
The entity would be called CommercialCo and remain under the control of NZR.
An additional co-investment of up to $100m will be offered to New Zealand-based institutional investors later in 2022.
Thirty-seven million dollars has been put aside for a short-term investment in rugby, with provincial unions set to receive $20m; $14m will go the NPC unions and $6m to the Heartland unions.
The Māori Rugby Board will receive $2m.
NZR chair Stewart Mitchell said it would signal a new era for rugby.
"This is a transformational moment for rugby in Aotearoa at every level of the game and will enable us to move forward, change, and take advantage of the massive opportunities in front of us," he said.
"Our collective challenge now is to grasp this moment and ensure we invest in the right areas of the game, in particular at the grassroots, in teenage and women's rugby, and in the technology which will allow us to engage with our fans around the world and ensure rugby is re-imagined for the next generation."
He thanked Silver Lake for its "patience and understanding."
Chief executive Mark Robinson said the yes vote was a win for everyone involved in rugby.
"This is a major milestone for our game - the entire rugby community is united in support of the Silver Lake partnership and all that we can now achieve together. The hard work starts now ..."
Mark Robinson says NZR needs to get on with the job to make the most of the new deal. Photo: RNZ / Samuel Rillstone
The union needed to move at speed so the sport could be transformed for the benefit of everyone involved, he said.
Those benefits will result in stronger revenue growth which will ultimately flow back into the game at all levels."
NZRPA chief executive said there had been "a robust process" and now there was the potential that a successful partnership had been forged.
Silver Lake managing director Stephen Evans said digital technologies were changing sports and media, "providing a lot of opportunities for rugby, and we are ready to help go after them-while respecting the values and traditions of the game in New Zealand".
Two years in the making
The deal has been a couple years in the making and there have been various incarnations.
The provincial unions weren't happy with a deal the NZR and the Players Association initially concluded and wanted changes made.
It's believed NZR offered the provincial unions a "capped funding agreement'', so if they get a percentage of commercial income, that would hit a maximum payout if turnover increased to a certain level.
The provincial unions want the cap removed.
They also want a seat on the CommercialCo board.
The players' association managed to get a voice at that table and the unions want one too.
Ultimately Silver Lake will own between 5.71 percent and 8.58 percent of NZR CommercialCo, representing $200m-$300m investment, depending on capital needs and the uptake of New Zealand-based institutional investors.