New Zealand Rugby buying back stake in struggling Blues

New Zealand Rugby has taken a 40 per cent stake in the the Blues Super Rugby franchise.

The game’s governing body and Bolton Equities Limited (BEL) has agreed that NZ Rugby will take over, on an interim basis, the 40 percent partnership interest in the Auckland-based Super Rugby club following an independent review of the club’s governance structure.

The review concluded that the existing shareholding mix is unsustainable, a NZ Rugby release said yesterday, and recommended that BEL sell its shares to NZR.

NZ Rugby will now work with the provincial union shareholders to find a new group of investors.

NZ Rugby chief executive Steve Tew said: ‘‘We would like to thank BEL CEO Murray Bolton and his team for their contribution to the Blues over this period.

‘‘A large amount of progress has been made over this time highlighted by the establishment of the Blues’ home base in Epsom which is as good as any in professional rugby.’’

It’s understood NZ Rugby had major concerns over the governance of the poorly-performing franchise which has been consistently the weakest of the five Kiwi teams in Super Rugby this decade.

The poor results were thought to have contributed to wider problems of player numbers and rugby popularity in Auckland.

‘‘Whilst we have been required to sell our shares, we will continue to be a strong advocate and supporter for the Blues,’’ Bolton said.

NZ Rugby has agreed with the remaining Blues owners (Auckland Rugby Union, North Harbour Rugby Union and Northland Rugby Union) to hold its partnership interest until a process has been completed to identify alternative private investors and, the appointment of a new board chair.

Outgoing chair Tony Carter has agreed to remain as the independent chair during the period of the transition.