Premiership Rugby is expected to reject a £275M ($355.7M) bid for a major share in England's top league from private equity firm CVC Capital Partners, "although two other finance-raising options are understood to be under strong consideration," according to Gavin Mairs of The London TELEGRAPH. It is understood several clubs believe CVC's offer "undervalues the tournament." Premiership Rugby's turnover has risen "dramatically" to £70M ($90.5M) this season, a rise of 88% in five years. Those opposed to the offer believe that it "does not reflect the potential growth of the league." One senior club source said, "Given the rise of the revenue over the last five years, the offer of £275 million is not enough. Selling 50 percent or more of the league might give us a short-term windfall, but it would result in lower central revenues going forward unless the investor is able to increase them significantly." Caution expressed over the CVC offer "could make two other options that will be presented to club owners on Tuesday more attractive." It is understood that clubs will also "consider an offer of smaller financial investment for a minority shareholding" as well as an option to effectively take out a "mortgage" on future league revenues, giving the clubs a "much-needed short-term cash injection" (TELEGRAPH, 9/5). In London, Owen Slot reported the Rugby Football Union has been "keeping a close eye on developments" and declined to comment on Wednesday. However, it is known that the RFU harbors a "justifiable concern" that with a private equity firm owning half the Premiership, there is a danger that future negotiations over the time and cost of release of the England squad for int'l duty "could become antagonistic." England Rugby head coach Eddie Jones said that his job "would become impossible if he were given less access to the players." Jones: "We can't get them any less. If we get them any less, we won't see them at all." Saracens Owner Nigel Wray was "quick to declare his support for the deal," saying, "To bring in a very strong financial partner like CVC, well respected, huge experience in sport via Formula 1, is a very good move" (LONDON TIMES, 9/6).
LONG TIME COMING: In London, Mark Souster reported in '14, CVC reportedly "made a play" for the 2015 Rugby World Cup as "part of a global sports strategy." It also "considered investing in club rugby but felt the scale was insufficient." In the past, CVC "looked at" ManU and Liverpool and "was interested in buying into Chelsea last year." After making about £8B from its decade-long ownership of F1, CVC "wants to buy into baseball, Wimbledon and the America's Cup" (LONDON TIMES, 9/6).
