A group of South Island private investors has been granted a five-year licence to run the Highlanders.
The group, headed by Ticket Direct boss Matthew Davey, has taken a 77% stake in the Dunedin-based Super Rugby franchise, with Otago, Southland and North Otago Provincial Unions having a 13% stake.
New Zealand Rugby (NZR) retains a 10% share for the first two years.
The new venture is being underwritten by a guarantee of up to $500,000 from the Invercargill City Council. In exchange the Highlanders are guaranteed to play at least one game in Invercargill for each of the next five years.
"The Highlanders are now well placed to face the future with renewed confidence and build on what has been a very successful year on the field," said NZR Chief Executive Steve Tew.
"The investor group brings considerable commercial experience, particularly in the sports consumer marketing area and they have great knowledge of the business of rugby. This experience, coupled with strong provincial union support, will really help the Highlanders build a sustainable business and take full advantage of the opportunities ahead."
The investors said they could not pass up on the opportunity, with Davey highlighting his emotional attachment to both rugby and the Highlanders.
"For those who love rugby [like our group] it was simply too good an opportunity to pass up," Davey said on behalf of the investor group.
"We see this as a good business opportunity, but equally we have a strong emotional attachment to the South and for me in particular, the Highlanders.
"They've been my team from the very early days of Super Rugby but it's also fair to say that we've been impressed with the work and results that Roger Clark, Jamie Joseph and the previous Highlanders board have achieved, in building the Highlanders up to a point where a group such as ours would be interested.
"We are an experienced, well-resourced, innovative group and we look forward to a long and successful partnership with rugby in the South and it's certainly our ambition to build on the strong base that New Zealand Rugby has entrusted us with."
Doug Harvie, chairman of the board of the new operating company, was pleased with the arrangement.
"Having been involved with Provincial Unions and the Highlanders, I am very pleased with this investment consortium taking the reins for the ensuing years. The commercial acumen they bring is exceptional, and will put the Highlanders in the very best position to build on last year's success," Harvie said.
The responsibilities of a Super Rugby Licensee include managing the team on and off the field as well as marketing and promoting the team. They also pay administation, additional coaching and management staff, training facilities, match operations and marketing costs.
New Zealand Rugby will retain ownership of the Highlanders brand, continue to fund player, head coach and one assistant's contracts , while paying all travel and accommodation costs associated with the regular season.
The Highlanders were the last of the five New Zealand franchises to seek a private licensing agreement, and negotiations have been ongoing for more than a year.
