It’s not easy but Chiefs coach passes big test
As Damian McKenzie lined up his crucial penalty last week, Chiefs coach Clayton McMillan looked like he was thinking about what to feed his chooks.
McKenzie, of course, slotted the kick to give the Chiefs a magnificent 26-24 victory over the Hurricanes in Hamilton which qualified his team to meet the Crusaders in the Super Rugby Aotearoa final in Christchurch on May 8.
As the TV camera swivelled toward the Chiefs coaching staff, McMillan, having relocated to the back of his ‘‘office’’, portrayed the image of a chap who had settled on the decision to throw his feathered mates the leftovers from his fried breakfast.
Was he really that calm? Probably not. His heart must have been banging away like a hammer on tin. Don’t believe everything you see.
1. How good is McMillan as a coach?
His results say it all. Two early losses followed by five consecutive victories, and a chance to win the SRA title.
If you want to know how tough the coaching gig can be on the nerves, view the footage of how NRL coach Trent Barrett reacted after his Bulldogs held on to beat Cronulla last weekend.
Barrett could be seen wiping away tears after the Bulldogs recorded their first win of the season. He looked so nervous in the final minutes you wondered if his team had let it slip, whether he might have required oxygen from his medical staff.
Now to McMillan. Many thought he had walked into an ambush when he took over from Warren Gatland.
After the round three loss to the Crusaders, the Chiefs had equalled the Highlanders for the most consecutive defeats (11) by a New Zealand Super side.
Yet he convinced the players to trust him, and the positive results flowed. McMillan clearly can coach. And don’t let anyone tell you it’s easy.
2. Damned if you, damned if you don’t.
McMillan has been forced to roll the dice for the meaningless final round-robin against the Blues in Auckland in the final round.
Eleven men have been placed in cotton wool ahead of the final, with six to make their Super Rugby debuts at Eden Park.
The question will be whether he has overplayed his hand.
Some sports coaches are reluctant to change a winning team so close to a final, saying it is better to retain combinations and keep men confident.
Yet the risk of injury can be too great to ignore, especially when the Crusaders have the benefit of the bye.
3. Spare a thought for Blues coach Leon MacDonald.
He had to watch with a mixture of bewilderment and annoyance as midfielder Tanielu Tele’a was forced to leave the field in the 29-6 loss to the Crusaders last weekend because he was winded.
It’s understood the game-day doctor said he had to be replaced because of the length of time he was on the deck.
Tele’a, having copped a late shot in the 15th minute, appeared to have tried to milk a penalty. His Hollywood performance was too convincing.
Tele’a, who hadn’t been whacked in the head and was never asked to complete an Head Injury Assessment, had to go.
MacDonald said the Blues doctor told his counterpart that Tele’a wasn’t hurt. But if you stay down too long, you pay the price.
4. Still no sign of Patrick Tuipulotu.
The big All Blacks lock and Blues skipper will miss a fourth consecutive game for the Blues because of a neck injury. Fingers crossed he is fit for the transTasman competition.
5. Pick a winner between the Hurricanes and Highlanders?
Go with the Canes. They are due for some luck. They are better than a team that is one from seven. It pays to be optimistic. NZ Rugby and Silver Lake. What’s the fuss about? NZ Rugby wants to secure a deal worth $387.5 million with the US investment behemoth because it needs money and Silver Lake could, potentially, enable it to rake in some much-needed cash. At the annual meeting in Wellington yesterday, NZ Rugby announced a $34 million loss for 2020. This followed a loss of $7.4 million the previous year. Like many businesses in New Zealand and beyond, NZ Rugby has been hammered by Covid-19. Super Rugby was canned, and Super Rugby Aotearoa was born. That kept commercial partner broadcaster Sky Sports happy, and provided the five Super Rugby franchises with financial stability, but significant challenges remained. The All Blacks – NZ Rugby’s flagship team – was the big ticket item but finding opponents was an issue. The Rugby Championship was renamed the Tri Nations because the world champion Springboks refused to join the All Blacks, Wallabies and Pumas in the Sanzaar-run tournament and there was no northern tour. So 2020 was a year to forget. NZ Rugby, led by chief executive Mark Robinson, knows it has an obligation not just to survive but to thrive. That’s where Silver Lake enters the narrative.
What does the Silver Lake deal involve?
The Silicon Valley-based private equity firm wants NZ Rugby to sell it a 12.5 per cent stake in a new entity called Commercial LP for $387.5 million.
This new entity will control NZ Rugby’s commercial interests, with up to $43.75 million of the sale price committed to working capital for Commercial LP, in addition to the contribution from Silver Lake.
Make no mistake, Silver Lake is in this to make serious money.
It’s understood NZ Rugby will pay
Silver Lake 12.5 per cent of revenue from commercial operations after three years, starting from 3.5 after the first year and 7 following the second.
NZ Rugby rakes in just under $200 million a year in revenue. Silver Lake, if it can help NZ Rugby raise that amount, will therefore get a bigger slice of the pie.
So there is potential for it to make tens of millions of dollars.
NZ Rugby will also benefit, providing everything goes to plan.
NZ Rugby’s commercial rights, thanks mostly to the powerful All Blacks brand, is valued at around $2.8 billion. The injection of money could potentially enable up to $39 million to be distributed to NZ Rugby’s stakeholders.
That means the provincial unions, who voted unanimously at the annual meeting for the Silver Lake deal to go ahead, could use the funds to develop the amateur game.
That is sorely needed. Times are tough for many provinces.
So why hasn’t the deal been approved?
Because the New Zealand Rugby Players Association has tugged the handbrake, and agreed to nothing.
It entered mediation talks with NZ Rugby late last month and is expected to return to the negotiation table next month.
NZRPA, led by Rob Nichol, has expressed concerns about a number of things. It’s worried Maori and Pasifika cultural values could be misappropriated, and the financial risks that come with jumping into bed with an American company.
Players currently receive 36.5 per cent of NZ Rugby’s revenue and if Silver Lake invests in their employer that should be a good thing. It’s understood NZ Rugby has made it clear the players won’t be any worse off under the deal.
The NZRPA said in a letter to NZR that the transaction with Silver Lake could jeopardise the ‘‘special bond’’ New Zealanders have with the game here could be at risk.
NZ Rugby strongly refutes this. With Robinson in charge they have a former All Black and Crusaders midfielder who understands how meaningful the black jersey is to Kiwis in New Zealand and abroad.
We saw what happened when the 12 biggest football clubs in Europe recently tried to form a breakaway competition because their powerful, and wealthy, owners wanted to rake in more loot. What is there to prevent Silver Lake from demanding NZ Rugby does something similar with the All Blacks?
It’s understood NZ Rugby has inserted tight controls in the contract. That prevents Silver Lake, who will be a minority investor, from following in the boot prints of the ‘‘dirty dozen’’ football club owners.
An independent review, commissioned by NZ Rugby’s stakeholders, is understood to have reported it had rarely seen a minority-stake private equity deal with so many controls in favour of the majority stakeholder.
Silver Lake has signalled it wants to be involved with NZ Rugby for between seven to 10 years, but that term could be extended. It’s also likely NZ Rugby will put in a buyback clause.
By spending a decade working alongside Silver Lake, NZ Rugby hopes to garner the skills, knowledge, contacts and networks that could lead to it forging ahead under its own steam.
NZ Rugby has made it clear it is serious about the organisation’s heritage and cultural aspects and, they too will be safeguarded in any agreements that are signed.
Silver Lake isn’t doing this because it loves the ovalball game. Is there a chance it could use the All Blacks as a cash cow, by demanding they play more tests in obscure countries?
NZ Rugby has come out swinging on this issue, saying it won’t happen. Its message to stakeholders is there is zero chance of the All Blacks being exploited in such a manner. In fact, it has been saying the opposite – that player welfare will be as important as ever if the deal goes ahead. It’s understood NZ Rugby and Silver Lake have discussed this, and agree the best way forward is for the All Blacks to play the same amount of tests – currently at around 15 – a year, or less. If the tier-one nations can get together and agree on a fresh competition, as they did in 2018 when they tried to launch the Nations Championship, the All Blacks could be involved in the Rugby Championship in July and play northern teams each November. There is potential to play an international tournament every two or four years, with revenue-sharing opportunities through broadcasting rights and ticket sales. Stakeholders have been told by NZ Rugby that Silver Lake could use the strength of the All Blacks brand to push into emerging markets in North America and Asia. NZR believes its fan base, globally, is under-utilised. It wants to change this. Silver Lake can help on this front.
If the All Blacks play fewer games, how does that earn more money?
The key is to get the All Blacks involved in top-drawer tournaments.
Streaming games via the internet could be an option in future years (Sky Sport has a deal with NZ Rugby through to 2025) and selling merchandise could be huge if Silver Lake helps drill into new markets in Asia and North America.
Obviously playing games is paramount, but may not be such a crucial part of the business plan as has been in the past.
NZ Rugby has been impressed by Silver Lake’s capability and business plans.
Silver Lake, a cutting edge technology investor, could provide insights into how to access Esports and gaming. Developing technology in the years ahead could be key for NZ Rugby.
Can NZ Rugby and the NZRPA come to an agreement to allow the Silver Lake deal to be signed off?
Good question.
NZ Rugby has told the NZRPA and its stakeholders it doesn’t see any downside of a Silver Lake deal for the players. It has pushed the message that the Silver Lake deal would provide the chance to invest in the community game.
What does Silver Lake make of NZ Rugby’s impasse with the NZRPA?
We don’t know.
However NZ Rugby has repeatedly stated Silver Lake is prepared to be patient.
Silver Lake is understood to have discussed its proposals, and values, with former All Blacks, and representatives from provincial unions during the lead-up to the vote at the annual meeting.
Part of its sales pitch to the PUs was that advances in technology could potentially make life easier for volunteers, find ways to connect clubs to communities and monetise data.
Now it is a waiting game, until NZ Rugby and the NZRPA recommence negotiations.