ORFU hears NZR foreign investment pitch

ANY decision on whether the Otago Rugby Football Union supports or opposes private investment in the game is some way off.

New Zealand Rugby made a presentation in Dunedin on Wednesday outlining a proposal for private investment in the game in New Zealand.

New Zealand Rugby has received a $465 million offer from United States investment firm Silver Lake for a 15% share of commercial rights.

The commercial rights were valued at $3.1 billion.

Union chairwoman Rowena Davenport said it was very informative session in Dunedin, and outlined what the investment would mean.

She said the union has been consulted right throughout the process, and the roadshow on Wednesday was just another part of that.

She said a big part of the focus at the presentation was the benefits for community rugby, which was pleasing.

The national union has taken a cautious approach to the investment; it would set up a subsidiary company which would look after the commercial rights, and it would be this company that Silver Lake would be a part of.

All rugby decisions would still be in the hands of the national union. It was a chance to boost the game and give money to the grassroots of the sport.

Davenport said there were exciting aspects of the proposal and it was a chance to invigorate the game.

She said no decision would be made by the Otago union until all provincial unions had time to look at the proposal and study its strengths and weaknesses.

Silver Lake was an investment company which had seen sports as an area of growth.

Rugby was a growing sport globally and the All Blacks were at the centre of it, so it made sense for Silver Lakes to take a stake in New Zealand Rugby.

Though the money does seem attractive, especially after a season where New Zealand Rugby lost more than $40 million as tests and other games were cancelled, any proposal to sell off the national game to a foreign buyer is bound to be contentious.

A decision on whether to proceed with the Silver Lake proposal was likely to be made at the national union’s annual meeting in April.