NZR offered $465m for 15% share

TENNIS

AUCKLAND: New Zealand Rugby has received a

$465 million offer from US technology investment giant Silver Lake for a 15% share of commercial rights valued at

$3.1 billion.

The deal, should it be signed off by NZR’s provincial unions, would be the biggest seachange since the game turned professional 25 years ago, and the largest transaction of this nature in New Zealand sports history.

NZR and Silver Lake have been in talks for more than nine months.

While Silver Lake’s minority stake remains under negotiation and could be anywhere from 10% to 15%, with terms yet to be finalised, it is understood the investment company has tabled a $465 million offer for 15% of a new, separate NZR entity.

The deal is conditional on acceptance from the majority of the provincial unions, with a decision not expected before NZR’s annual general meeting in April.

Provincial union and Super Rugby bosses canvassed by the Herald cautiously welcomed the move, but selling a stake in the national game is expected to evoke polarising reactions.

NZR executives yesterday began a series of threehour roadshow pitches to the provincial unions, starting in Dunedin, to outline the landmark offer and explain how the gamechanging funds would be distributed.

The NZ Rugby Players’ Association, as well as former All Blacks, coaches and Black Ferns are being courted as part of the nationwide consultation period.

NZR’s plans involve setting up a subsidiary company, dubbed CommercialCo, which will be responsible for maximising commercial rights, including broadcast, sponsorship, merchandising and growing future revenue streams such as streaming, Esports and global coaching clinics.

Silver Lake has $US40 billion ($NZ55 billion) in assets, while its portfolio generates more than $200 billion revenue annually.

Senior NZR executives have stressed the All Blacks, nor any other teams, were being sold and described the deal as an ‘‘incredible offer’’ that reflected the appeal of New Zealand’s 130year rugby legacy.

NZR’s pitch to the provincial unions details the benefits the cash influx will have on all levels of the game, particularly in propping up the underresourced grass roots, while outlining the need to manage expectations, form a war chest and be disciplined with future spending.

It is understood Silver Lake’s investment would be paid in three tranches over three successive years to help ensure it is carefully managed.

Plans for the funds include immediate and significant investment into the provincial unions; shoring up NZR’s cash reserves that took a $40 million hit due to the reduction of All Black tests and Covid19 shutdown last year, futureproofing the community and women’s game through the creation of a legacy fund, initiatives to tackle the sharp decline in teenage participation rates and covering ongoing costs of CommercialCo.

The funds will also assist in the ongoing fight to retain players, who through the Players’ Association have an agreement that ringfences 36.5% of NZR’s annual revenue. — The New Zealand Herald

SYDNEY: Alexander Zverev says it would mean ‘‘everything’’ to him to lead Germany to ATP Cup glory after setting up a cutthroat showdown with Novak Djokovic’s defending champion Serbia.

Zverev yesterday overcame fellow young gun Denis Shapovalov in a titanic twohour, 55minute encounter to clinch Germany’s daytwo tie with Canada.

Zverev denied Shapovalov 67 (57), 63, 76 (74) after JanLennard Struff had upset former Wimbledon finalist Milos Raonic 76 (74), 76 (72) in the opening rubber at Melbourne Park.

Having lost 21 to Serbia on Tuesday, Canada is now out of semifinal contention.

Serbia and Germany will duel for group A honours today.

Djokovic, a perfect 10 from 10 at the ATP Cup since last year’s inaugural competition, is up

against the seventhranked Zverev in a promoter’s dream.

Struff will play Dusan Lajovic in the other singles match, before the potentially decisive doubles rubber.

Zverev has amassed 13 singles titles, including three Masters 1000 crowns and the showpiece seasonending championship in 2018, but said winning a team tournament for Germany would

be something else.

‘‘Everything. Winning a team event, winning something for your country it’s one of the biggest things in our sport,’’ the 23yearold said.

‘‘The ATP Cup is just as big as the Davis Cup right now, with the new format that the Davis Cup is having.

‘‘So we want to go match by match. Tomorrow we got the defending champions; that’s not going to be easy for us.’’

Italy on Tuesday became the first team through to the semis after completing a comprehensive victory over France.

Fabio Fognini beat Benoit Paire 61, 76 (72) in yesterday’s opening singles rubber before Matteo Berrettini sealed the tie with a 64, 62 rout of Gael Monfils.

Nicolas Mahut and Edouard RogerVasselin scored a consolation win for France over Simone Bolelli and Andrea Vavassori in the dead doubles rubber.

Italy remains unbeaten and is assured of topping group C following its 21 triumph over Austria on Tuesday. — Reuters