The prospect of selling a stake in Premiership Rugby has seemingly gained momentum.GETTY IMAGES
Premiership Rugby believes it is "highly likely" a deal will be struck to sell a minority stake in the competition to an investor, which is expected to generate in excess of £300M ($393.8M) for the clubs, after claiming that it had received strong interest from a number of "serious global players," according to Gavin Mairs of the London TELEGRAPH. The investment options include an "improved offer" from CVC Capital Partners, a private equity firm which made £8B from its ownership of Formula 1. The option of raising cash by borrowing was also discussed at a meeting on Tuesday of all 12 Premiership clubs, including London Irish, which owns Premiership Rugby Ltd. shares. However, it seems the prospect of selling a stake to an investor "has gained momentum" and a deal could be completed "in a matter of weeks." Asked if it is now inevitable that a deal will be struck, Premiership Rugby CEO Mark McCafferty said, "I think inevitable is a very strong word. I think it's certainly highly likely. The shareholders want to do that, they want to continue the kind of growth we were talking about at the briefing where we've been growing 80-percent-plus over the last five years and they see the opportunities for continuing to do that." McCafferty said that the prospect of an overseas investor that has the ability to expand the reach of the tournament is "one of the key factors in the decision-making process." He added, "We're a very big domestic player, sporting-wise I like to think, but we're still relatively small on the international front. So, developing the global appeal and following for the Premiership is one of the things on our agenda" (TELEGRAPH, 10/16).
