Rugby: Privatisation of franchise some way off

Jeremy Curragh.
Jeremy Curragh.
The process of privatising the Highlanders continues but any deal is still some way off.

The southern franchise is the last of the five New Zealand Super rugby teams to seek a private licensing agreement, and negotiations are continuing over any investment from individuals or groups.

New Zealand Rugby has granted private licences for the other four franchises.

Initially, the Highlanders were not part of this process but, with finances more secure, the process has begun.

The owner of the licence gets to control some parts of the franchise and receives income from match tickets and sponsorship.

New Zealand Rugby will continue to pay the players and some of the management team and also gets to keep the broadcasting income.

The licensing agreement is being overseen by former Bay of Plenty Rugby Union chief executive Jeremy Curragh, who played a major part in the saving of the Otago Rugby Football Union from liquidation in 2012.

Curragh said yesterday that progress had been relatively slow in coming to an agreement with any investors.

He said talks had been positive and were continuing but any closure on a deal was still some time off.

He declined to say how many people or groups were interested.

It was initially hoped to have the process done by the start of the new season, but that was now looking unlikely.

Curragh, who is on the Highlanders board, said negotiations always took longer than hoped and there was no point rushing anything.

With the Christmas break coming up, any chance of getting a deal done by the start of the next playing season was very unlikely.

He would not put a date on when a deal, if reached, would be completed and whether they had a date by wich they wished to have a deal signed.

Any investment in the Highlanders is likely to include provincial unions.

In the other deals for a stake in one of the four franchises, provincial unions have teamed up with business interests to buy the licence.

Otago and Southland would want to be partners in a deal but may struggle to come up with any money to invest.

The Highlanders reported a profit for last season of $57,000.

Curragh is being assisted by board chairman Doug Harvie in the licensing process.

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