WHO’S WHO IN THE POWER STRUGGLE
WHAT DEAL HAVE CVC DONE WITH THE PREMIERSHIP?
CVC Capital Partners bought a minority stake of 27 per cent in Premiership Rugby at the end of 2018 for around £200million. An initial offer for 51 per cent was rejected in September. The idea is for the money to be split among the 13 shareholders of Premiership Rugby (the 12 clubs plus Championship side London Irish) to help service debt and fund stadium improvements. The Premiership clubs were desperate for outside investment as the vast majority, apart from Exeter, lose money every year and collective losses total more than £25m.
WHO ARE CVC?
CVC are a private equity firm who were the owners of Formula One between 2006 and 2017, employing Bernie Ecclestone to run the business. They sold F1 to Liberty Media for around £6billion having sky-rocketed revenues, added lucrative circuits in Bahrain, Azerbaijan and Russia, and bumper TV deals. But they were accused of making F1 suffer. When they left F1, then deputy team principal of Force India, Bob Fernley, accused CVC of ‘raping the sport’.
WHAT IS THEIR GOAL?
CVC want to improve the global fanbase of the Premiership, increase its marketability and, of course, make profits. Ideas floated in the leaked minutes include playing more matches abroad, particularly in the USA and China, midweek fixtures, beefing up TV rights deals and putting an end to promotion and relegation by closing off the league. There was even talk of ‘unilateral action’ to split from the RFU and form a breakaway league.
WHAT IS THE PROFESSIONAL GAME BOARD?
THE PGB is a committee of the RFU board that oversees the men’s professional game in England. It was formed in 2008 and its remit is to monitor and manage all issues to do with playing professional rugby in England. The PGB have regular meetings to discuss issues including England player release, season structure, player welfare, use of the academies and the second-tier Championship. It comprises members of the RFU, Rugby Players’ Association and Premiership Rugby. In 2016, the RFU and Premiership Rugby signed an eight-year agreement for £220m, which runs out in 2024, giving England head coach Eddie Jones (left) greater access to players, two additional training camps and more rest periods. It also meant Jones could pick bigger national squads. Ian Ritchie, then the RFU chief executive, was key in negotiating the deal. He is now the chairman of Premiership Rugby, having left the RFU in the summer of 2017. If there were to be any Premiership breakaway, it would be entangled in red-tape as the PGB deal has five years to run. When releasing their annual report at the end of last year, RFU chairman Andy Cosslett said paying £220m to the clubs more than two years ago seemed ‘costly against updated revenue forecasts’. HOW ARE THE RFU INVOLVED IN PREMIERSHIP RUGBY? WHILE Premiership Rugby run their own league and are made up of 12 independent businesses (and 13 shareholders including Irish), all with their own interests, they are heavily reliant on the RFU. The governing body approve the rules of the league, are responsible for discipline and anti-doping and provide referees.