HKRU gets behind Silver Lake deal
Successful union happy with money earmarked for rugby’s grassroots
Horowhenua-Ka¯piti Rugby Union has thrown its support behind the new deal between New Zealand Rugby Union and US investment firm Silver Lake.
HKRU chief executive Corey Kennett said the decision was made in due diligence with all member clubs, involving consultation with clubs, schools, referees, and Ma¯ori rugby representatives.
It had a clear mandate from its members to support the landmark deal that would see Silver Lake inject $387.5 million into NZR, with a large portion of the money earmarked for rugby’s grassroots.
“We think it’s a good deal. This is a chance for a capital injection that will benefit rugby at all levels,” he said.
HKRU was not alone. The 25 other provincial unions and New Zealand Ma¯ori Rugby Board (NZMRB) all voted unanimously in favour of a private equity deal last week.
It would see Silver Lake take a 12.5 per cent stake in the national game.
NZR last week announced an operating loss of $18.7m. A further $16m writedown of Sky Television shares added to a total loss of $34.6m for the financial year.
Kennett said HKRU saw the deal as a way of ensuring continued growth and support of grassroots rugby.
NZR had been “fantastic” in their support of HKRU and player numbers locally continued to grow.
“It’s like being at the bottom of a mountain. You can clearly see the stream where the drinking water is coming from,” he said.
HKRU is a poster boy for provincial unions, having posted a surplus for the past 13 seasons.
Through bulk funding from NZR and sound management, it was able to keep participation costs to a minimum for players at all levels. HKRU paid for ground hire on behalf of all clubs, and didn’t charge clubs affiliation fees.