NZ Rugby and the NZ Rugby Players Association have approved a controversial $300 million deal with US investor Silver Lake that has divided the sport in New Zealand over the past 12 months.
While agreement must still be ratified by provincial unions and the Māori Rugby Board, it has been hailed as a "pivotal moment in rugby in New Zealand", opening up investment opportunities through all levels of the game.
Initially, Silver Lake will contribute $200m into a new commercial entity that will include all revenue-generating assets of NZ Rugby, with another co-investment of $100m offered to NZ-based investors later this year.
The three partners will also establish a 'Global Rugby Opportunities' fund to explore opportunities in rugby outside New Zealand.
"This partnership presents rugby with an extraordinary opportunity to secure its future and unleash its true potential," says NZ Rugby chief executive Mark Robinson. "We are truly excited by what we can achieve together with Silver Lake’s world class capabilities - from fostering and growing our grassroots, to enhancing the experiences we can create for New Zealanders, and truly maximising our potential on the global stage."
Significantly, the deal comes with NZRPA endorsement, after many leading All Blacks and Black Ferns expressed their concerns over how American investors might treat the culture and heritage around the coveted black jersey.
At times, the debate became vitriolic, with All Blacks great Sir John Kirwan calling for changes in players association leadership, pointing the finger at chief executive Rob Nichol.
"The partnership is the outcome of long and considered discussions, and has been approved by the NZRPA board," says NZRPA chairman David Kirk. "This is a pivotal moment for rugby in New Zealand.
"The agreement provides capital on a sound economic basis and Silver Lake brings additional capability to execute on the new growth opportunities. The proposed investment by New Zealand institutions provides an opportunity and natural pathway for New Zealanders to share in the growth of rugby over time."
Key to the deal is NZ Rugby's control of the NZR CommercialCo and a new collective agreement that maintains current revenue-sharing levels between the national body and players.
"We are excited about this agreement and have confidence that it is a great outcome for rugby on all levels," says All Blacks captain Sam Cane. "We are impressed by Silver Lake's thoughtful approach and what they can contribute to help us become better at what we do off the pitch.
"This partnership is a great step forward for the game."
Black Ferns Sevens captain Sarah Hirini has praised the opportunities this investment opens up for women's rugby in a year when New Zealand will host the Rugby World Cup.
