The owners of Premiership Rugby clubs on Tuesday considered a second bid from CVC Capital Partners, the private equity firm whose attempt to buy a controlling stake in the league for £275M ($363M) was rejected last month, according to Owen Slot of the LONDON TIMES. The 13 shareholders of Premiership Rugby discussed "a number of other offers" that have been assembled by Rothschild, the banking firm acting as their adviser. Other private equity firms "have followed the CVC lead and are interested in buying a shareholding." Rothschild gave the market a deadline of last Friday for all bids to be tabled. It was expected that CVC would withdraw its interest "because it wanted to buy a majority stake in the Premiership" and the owners rejected the original proposal. However, CVC "has returned with a more creative bid" which does not give it a 50% shareholding but which, if accepted, "will buy the control of the commercial arm" of Premiership Rugby that it had "always desired." CVC’s "tenacity reflects the firm’s long-term, broader interest in rugby" (LONDON TIMES, 10/16). In London, Ahmed & Espinoza reported a source close to Premiership Rugby said that there had been "overwhelming interest" from private equity groups and financial institutions and "those would be under discussion." The source added that at Tuesday’s meeting, the owners wanted to "crystallize" their options and "choose a direction of travel" -- either sell a minority stake, borrow large sums, or work on a deal that would be a "combination of selling equity and taking on debt." Top-tier English rugby clubs "are desperate for cash." Most are unprofitable and make a combined annual loss of roughly £30M ($39.6M) (FINANCIAL TIMES, 10/16).
