All Blacks to sell commercial stakes to US company | Sunday Observer

All Blacks to sell commercial stakes to US company

2 May, 2021

New Zealand Rugby will face a momentous decision on the future of the All Blacks at its annual meeting when it debates whether to sell a stake in the commercial value of the national team to American investors according to agency reports

The reports said New Zealand’s 26 provincial unions will vote on a recommendation from New Zealand Rugby that it should bundle its commercial interests into a new entity and sell a 12.5 percent stake in that entity to California-based Silver Lake Partners for 387.5 million New Zealand dollars (US$279 million).

If the recommendation is carried, it will mark the first time in more than 115 years that the All Blacks — the most successful team in world rugby — do not wholly belong to New Zealanders.

The reports further said that Rugby officials argue the sale is necessary to secure the future financial sustainability of New Zealand Rugby after its finances were battered last year by the COVID-19 pandemic.

In documents to be presented to the annual meeting, NZR proposes transferring its commercial assets to a new company to be called Commercial LP and to transfer NZ$43.75 million ($31.5 million) from the sale price to that entity as operating capital, the report said. (agencies)