Premiership Rugby's new investor, CVC Capital, is ready to use its deal with the top English clubs "as a launch pad for a commercial takeover of the sport at international level," according to Chris Foy of the London DAILY MAIL. The private equity firm agreed to pay in excess of £200M ($254.3M) for a 27% stake in the Premiership and, "crucially, the clubs are handing over control of their commercial operations to CVC." Emboldened by the financial backing, the elite clubs are "pressing for the immediate scrapping of relegation from the top division." However, sources have indicated that the negotiations over ring-fencing are "merely a precursor to a far more significant power-play by CVC." It is understood CVC's "ultimate objective is to obtain a controlling stake in international rugby" with a view to "presiding over a shake-up of broadcasting rights" in the test game -- which the firm considers to be "chronically under-valued at present." It recently emerged that a group of club chairs previously discussed buying the Rugby Football Union and Twickenham. Amid suggestions that such a "bold measure" may be revived now, one source said, "The RFU is in real danger of losing control of the game to CVC and the Premiership owners." Rugby is apparently "becoming the subject of CVC's next major sporting profit raid," after the company "shook up motor sport" as majority owner of Formula 1 from '06-17. There is talk of Premiership clubs seeking to promote their "brand" in America and China. CVC took F1 away from its "traditional European heartlands" -- with a 50% increase in races outside the continent during its tenure as owner (DAILY MAIL, 1/7).
