Welsh Rugby Union welcomes £50m CVC cash injection
- Published
Wales celebrate winning the 2019 Grand Slam
The Welsh Rugby Union (WRU) has welcomed the £50m cash injection they will receive after the announcement of a partnership between Six Nations Rugby Ltd and CVC Capital Partners.
Private equity firm CVC has acquired a 14.3% stake in Six Nations Rugby.
This means Welsh rugby will benefit from £51m over five years.
"This is a pivotal moment in the history of the international game in Wales," said interim chief executive Steve Phillips.
CVC already has a stake in Pro14 and the Gallagher Premiership. It will invest up to £365 million for a 1/7th share in Six Nations Rugby, working alongside the rugby unions of England, France, Ireland, Italy, Scotland and Wales.
The money will be split on a sliding scale between unions, with the Rugby Football Union receiving £95m.
Six Nations Rugby includes the Guinness Six Nations Championship and the autumn international fixtures.
Phillips believes funds from the sale of this equity will be invested in long-term projects which he says will pay regular dividends in the future.
"Ultimately, this deal will be a catalyst for the growth of our game," said Phillips.
"It will directly improve the international tournaments we participate in, further engaging new and existing fans alike.
"Increased interest drives other opportunities both on and off the field. Indirectly the investment will in turn provide the foundations on which the whole game can flourish.
"We look forward to welcoming the laser commercial focus that CVC will add to the historic organisation that is Six Nations Rugby Ltd.
"CVC have a track record of successfully investing in sport and their proven commercial and technology expertise will benefit the game enormously.
"The initial investment is obviously extremely attractive. We have our own investment strategy as evidenced by the hotel on Westgate Street. Once approved, this deal will enable us to both continue and accelerate these plans.
"It is also important to note that the Unions have retained total autonomy in terms of rugby matters."
The new partnership covers Wales' autumn international matches as well as Six Nations controlled tournaments in the women's game and at Under-20s level.
The WRU say the potential for growth in the women's game has been a particular attraction for CVC
Chairman Rob Butcher says the challenge lies in improving the earning potential of their tournaments, as well as the way the WRU re-invest over the next five years to replace lost future earnings.
"This is an exciting day, but the hard work starts here at both Six Nations and on a domestic front in Wales," said Butcher.
"Our responsibility is to the future of the professional game in Wales and to sustainability and development at community level.
"We need to make this money work hard for Welsh rugby in the long term.
"We now have the opportunity to advance and develop our game once we come through the current crisis, to secure its future and enter a new era for rugby.
"If the recent challenges faced across the sporting landscape teach us anything, it is that diversifying our income beyond the traditional stadium income model is vital."