LONDON (AP) – The Six Nations rugby on Thursday approved the injection of 5 365m ($ 508m) in much-needed cash from CVC Capital Partners, a private equity firm.
Negotiations on a five-year deal for a 14.3% share of the six countries’ commercial rights began in September 2019. In January, they were agreed by the six Welsh rugby unions of England, France, Ireland, Italy, Scotland and Wales.
The partnership includes six-nation rugby-controlled tournaments featuring men, women, and under-20s, as well as fall international players. Trade unions will retain control of sports issues և majority control over commercial decisions.
The Rugby Football Association of England, in its strongest market, will receive the largest share of the investment, հինգ 95 million over five years. Next is France, followed by Ireland, Scotland and Wales, who say they will receive up to միլիոն 51 million. Italy receives the lowest fee.
Bill Swinney, chief executive of the world’s largest and richest union, said the deal would allow them to invest in the game and help offset projected losses of ից 30m to միլիոն 50m this fiscal year.
With all the games taking place in the autumn, with the Six Nations continuing without spectators, the RFU predicted a drop in revenue from միլիոն 140 million in tickets, hospitality and broadcasting. In November, the UK government provided 135 135 million in English rugby loans by the end of this month and 44 44 million to RFM, which has cut more than 160 people.
“Our CVC capital investment priorities will be community asset development and English rugby,” Swinney said.
“This could include, for example, the development of clubs, stadiums, data, digital investments, and the development of women’s play. “In the short term, as a result of significant revenue losses, we will also allocate some CVC capital to repay debts and restructure reserves.”
The Welsh Rugby Union hailed the deal as “a milestone in the history of the Welsh international game”.
“We look forward to welcoming the laser trade attention that CVC will add to the historic organization Six Nations Rugby Ltd,” the WRU said. “CVC has experience in making successful investments in sports, and their proven commercial and technological experience will greatly benefit the game.”
The Luxembourg-based CVC is already investing in the Pro14 League, which includes clubs from Ireland, Italy, Scotland, South Africa, Wales, as well as the English Premier League.
More MS sports. Https://apnews.com/apf-sports և https://twitter.com/AP_Sports