PREMIERSHIP RUGBY, GOVERNING body for England’s top division, welcomed a ‘new era’ after confirming a deal which sees a private equity firm acquire a reported 27% stake worth more than £200 million (€221 million).
CVC Capital Partners, which had previous involvement in MotoGP and Formula One, initially sought a majority shareholding of 51% but that was rejected.
Premiership clubs voted unanimously to accept the new deal, with the funds raised earmarked for developing facilities and stadiums and expanding the competition into new markets rather than paying increasing players’ wages.
Member clubs will benefit from a multi-million cash injection, according to reports. Premiership clubs recorded losses of a combined £28.5 million in 2016/17.
“The investment… into Premiership Rugby marks the start of a new era for English professional club rugby,” said a statement today.
“We’re happy that CVC’s track record speaks for itself,” said Premiership Rugby chief executive Mark McCafferty.
“They are expecting to be in this for the long term and they understand what’s required to invest and build.”
McCafferty said the investment will help to broaden the appeal of the competition both at home and abroad.
“I expect Premiership Rugby in seven or eight years’ time to be an even more globally followed business. That expansion needs support,” he said.
“The clubs see this as a way to accelerate growth and bring new fans into the game and opening up audiences.”
“We have a salary cap in place and that’s not moving for the next couple of years,” he added. “We are investing in operations and infrastructure, that’s the key.”
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