Unions double down over Silver Lake support

Photo: RNZ
Photo: RNZ
All 26 provincial unions have reaffirmed their support for the Silver Lake deal, saying a public offering had been looked at but was rejected.

After a Zoom meeting yesterday involving representatives of all 26 union, a statement was released which said the unions remained united behind the unanimous resolution passed at last month’s New Zealand Rugby (NZR) annual meeting to proceed with the Silver Lake partnership.

The deal would be worth $387.5 million to NZR although it would give up 12.5% of its commercial rights to Silver Lake.

The deal has become clouded of late after the New Zealand Rugby Player’s Association (NZRPA) refused to back the proposal and has offered the alternative of a public offering through Forsyth Barr.

But the 26 unions are still bullish about the Silver Lake deal.

The statement said the deal, which would create a legacy fund, would ensure the sustainability of rugby at all levels.

NZR’s move towards the private equity model is driven by the need to future proof the sport at both a community and professional level.

"The provincial unions have been supportive of NZR exploring all options to ensure the game’s long term financial viability, including an Initial Public Offering (IPO) option," the statement said.

"The proposed Silver Lake deal stood out as it meets all of the objectives; strategic capability, enhances growth and takes advantage of global revenue opportunities, helps build a legacy for rugby with the establishment of a legacy fund that will grow to over $200million in the next couple of years, boosts NZR reserves through a cash injection, and provides a funding distribution to stakeholders."

An independent review was conducted by PWC, at the request of the 26 unions, and a comprehensive document presented at a workshop held in March to examine its findings.

The proposed transaction document was also reviewed by Simpson Grierson before the annual meeting.

The statement also said NZR ran a robust consultation process before the vote at the annual meeting, which spanned several months, and considerable information was provided during due diligence.

"We recognise the decision is critical in securing the long-term future of rugby in our country and as a group we remain united in ensuring any decision that is made is to ensure the best outcome for Rugby Inc.

"To this end we fully support the NZR board and management leading any further discussions with Forsyth Barr and the RPA."

There would be no further comment from the unions until they had been briefed by the national union, following its meeting with NZRPA, the statement said. The parties were believed to have scheduled a session today, but it has been called off.

The statement was released by Auckland Rugby Union chairman Stu Mather.

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