Premiership Rugby Sells Minority Stake To Cvc

Premiership Rugby has concluded a “landmark” partnership with CVC Capital Partners Fund VII, selling a minority share to the private equity and investment advisory firm.

CVC had previously seen its 51% majority share investment proposal worth in the region of £275m turned down in September, however, confirmation of this minority shareholding deal was, according to Premiership Rugby, agreed unanimously by the member clubs.

The investment in rugby union’s top-tier competition is expected to be completed in the first quarter of 2019 and is the latest commitment by CVC to the sports sector, following investments within the likes of Moto GP and Formula One.

Premiership Rugby has experienced rapid growth over the last decade with commercial income rising by more than 80% in the past five years.

Ian Ritchie, Chairman of Premiership Rugby, confirmed that the proceeds from CVC’s investment is to be reinvested to drive continued growth in the sport.

In a statement, it was revealed that the investment is to help Premiership Rugby further develop the global appeal and following for the Gallagher Premiership, as well as its fan experience, one of the main priorities for the partnership.

Commenting on the deal that’s hoped to take rugby to a new level, Ritchie, said: “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.”

Mark McCafferty, Premiership Rugby Chief Executive, added: “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.

“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.”

McCafferty added: “It was the perfect time for us to identify the right partner to help accelerate our next phase of growth.”