Lake sides NZ Rugby risks alienating fans
NZ Rugby may not just have to brace for a prolonged scrap with the NZ Rugby Players’ Association as it attempts to thrash out a solution to the Silver Lake deal.
It also has to be cautious it doesn’t lose the support and loyalty of its most important stakeholders – those New Zealand rugby fans, amateur coaches, administrators and players who reside in every corner of the land.
The same, also, could be said for the NZRPA. It, too, needs to tread carefully.
While NZ Rugby convinced its board and provincial unions to endorse a deal with US investment giant Silver Lake, the NZRPA has continued to stonewall any progress. This saga could potentially drag on for many weeks, if not months.
There is a tremendous amount at stake for both entities after they failed to agree terms when mediation concluded last week.
NZ Rugby believe its plans to sell 12.5 percent of its future commercial income to Silver Lake for $387.5 million will not only assist in filling its coffers and help support the game in the community – up to $39m will go the provincial unions – but would also help tap into emerging markets and gain intellectual property that could future proof the game after the American firm has moved on.
The NZRPA is having none of it. It believes NZ Rugby is taking too big a risk by jumping into bed with a California-based private equity firm that isn’t entering the transaction just because it loves to see men and women in black uniforms pick up the ball and run with it.
Everyone accepts Silver Lake is in this to make tens of millions. It may have convinced a number of ex-All Blacks and coaches, in addition to the chairs and CEOs of the provincial unions and Super Rugby franchises, that its intentions are honourable, but NZRPA continues to flag its concerns.
The risk for NZ Rugby and the NZRPA is that the saga
turns rugby supporters against them as a blizzard of documents, through various sources, get leaked into the media.
Listening to NZ Rugby chairman Brent Impey and NZRPA president David Kirk, a former All Blacks captain, disagree in separate interviews about player payments on Friday provided an insight to the tension between the two parties.
All Blacks hooker Dane Coles said the NZRPA may have been getting ‘‘a bit of stick lately’’ but said it had an obligation to make the right call for the future of the game.
‘‘We wouldn’t be doing our job if we didn’t ask questions and have courageous conversations with NZ Rugby about what’s going on.’’
Where will it lead? Time will tell. Both parties should be mindful this has the potential to be a PR own-goal.
NZ Rugby had told stakeholders and players there’s no risk of Silver Lake being able to hijack the All Blacks, or follow the lead of the 12 powerful European football clubs that tried to create a breakaway competition.
Silver Lake is a minority investment with heavy controls around it, says NZ Rugby, and an independent
report commissioned by stakeholders stated it had never seen so many controls of the majority shareholder.
NZ Rugby also insists the legacy of the All Blacks and national teams, and cultural aspects of the organisation, heritage and history, will be safeguarded by tight controls around any agreements.
The NZRPA has suggested NZ Rugby ‘‘take debt’’ rather than work with Silver Lake but NZ Rugby rejects that, saying it doesn’t have any assets, so is limited by what it can borrow and will still have to repay that debt.
Impey also said it would be ‘‘terrible mistake’’ if the players don’t support the deal with Silver Lake.
‘‘We are at a critical juncture and need our players’ support if we are to make the most of the opportunity in front of us,’’ Impey said after NZ Rugby posted a loss of $34.6m at the annual meeting on Thursday.
So what now? NZ Rugby and the NZRPA will continue mediation in the weeks ahead. But this isn’t only about the money. Trust and respect is also important. The New Zealand rugby community, as the custodians of the game in the country, deserve the best service from both parties.