THE GUINNESS PRO14 today confirmed that investment firm CVC has taken up a 28% share of the company running the competition, Pro14 Rugby, with the participating European unions owning the remaining 72%.
The deal, reportedly worth €140 million when it was agreed last year, has also brought Italy’s union (FIR) in as member of Celtic Rugby DAC after a decade of participation in the tournament.
CVC has given high profile cash injection to Premiership Rugby, in which it acquired a 27% stake, and has been linked with a major investment to take hold of 14% of the Six Nations.
This deal will only enhance their influence across European rugby, but CVC has already assured the Competition and Consumer Protection Commission (CCPC) that they will proactively notify flag any deal to acquire commercial rights of the Six Nations.
This morning’s statement by the Pro14 says that the investment will ‘allow the league to work towards its full potential – for the benefit of fans, players, clubs and unions in these key rugby nations over the years ahead.’
The statement outlines that a portion of the investment will be held centrally to improve operations within the organisation, while individual unions will invest in their own programmes for growth.
“As a Board, we have been ambitious in our outlook and have significantly developed the league in recent years. One of our key goals was to secure a strategic partner to help accelerate our plans and CVC bring a wealth of experience and great expertise in this regard,” says Celtic Rugby DAC chairman Dominic McKay.
“Sport, like all of society is dealing with major challenges currently that we could not have imagined just a few months ago, and it is testament to the strength of our partnership with CVC that they have committed to the game of rugby in a such a significant way.”
Pro14 Rugby CEO Martin Anayi said:
“We believe the Guinness PRO14 is a world-class club league, that is still in its growth phase and we are confident that it will become a major standard bearer in our sport. We are excited that CVC clearly shares that ambition and we look forward to working with them to deliver on the league’s promise in the years ahead.”
they couldn’t say no after all that’s happen. Could CVC be responsible for the whole pandemic in order to persuade unions to take their offer. Diabolical!
@Darren Byrne:
CVC rhymes with 5G too.
Coincidence?
Wake up sheeple!
This is not good news. They are hard nosed business men and don’t have the interests of rugby at heart, in my opinion.
For their investment they’ll want their pound of flesh, no question about that.
@Robb Stark: I keep hearing they’ll want their pound of flesh, what do you think they’ll do? They’ve paid a lot of money for 28% of the pro14 comp, hardly a money generating cash cow. They haven’t bought 28% of the irfu. If the pro14 starts losing money then they’ll have to take their beating as well as the unions. If they can generate more profit then everyone wins. The only threat I can see from them is potentially to the hcup if they start looking for a b&i league. Pro rugby is in a dodgy position, any new income is a bonus
@Robb Stark: agreed. Bad move for the league.
@Robb Stark: agreed. This deal will only be used to leverage a larger deal with the RFU for a British & Irish league, at which point the IRFU becomes a more junior partner with less control of what takes place. This will then become part of the restructuring of the 6 Nations & International competitions, at which point you’ll take what you’re given or you’re out in the cold. Each step will be made with a view to maximising profits and return of investment with ‘rugby values’ becoming a platitude that’s thrown in with each media statement.
@El Sparko: interesting idea the B&I league… from what I’m hearing Keith wood was advocating for so morning similar on his off the ball podcast… it seems they think it will be more competitive therefore generating more fan interest and revenue. Would be interesting to have a B&I league with teams then also competing in the European cup.
@Johnny B: lol bad move for the league to get this type of investment.. yourself and Robb are so clueless to the actuals of pro sport. Newsflash the pro 14 is a failing league. Without this investment it would not be in existence in 5 years
Bit of a cash injection is exactly what’s needed. Mightnt be to everyone’s taste but it’ll be good for the competition I think. Good to see the Italians being brought into it as well.
Good chance they will try to form a British and irish Super league over the next few years.
Hope the money gets filtered down to the clubs & not retained by the national unions.
€2M per club for 5 years would be very useful.
@TL55: giving money to clubs isn’t necessarily a good thing. It all depends on how they spend / invest it surely. Some clubs could go for the quick fix and buy in a few costly imports to try gain instant success. And disappear as quick when the money dries up.
With CVC having so much power across various competitions they could bring much needed consensus to really improve rugby.
@Benny: if they happen to improve rugby it will only be an accidental by-product for them making massive profits
@Benny: Exactly Benny. If and when Leinster begin high court proceedings to break away from the IRFU, this commercial deal will make it impossible for the IRFU to be able to threaten to exclude Leinster from any competition given they are the largest commercial entity in it.
@Sean Fahey: Cranky balls and past it Sexton to play until he is 78 if that is the case.
@Sean Fahey: the IRFU pays a few Leinster players wages. It’d be a tough divorce.
CVC are in talks to buy stake in Serie A too, in that deal they will apparently they will be putting some money up for maintenance and construction of possible new stadiums, interesting to see if they have anything like that in pro14 deal.
@Seamus Cummins: pro14 barely fills stadiums as is