Premiership closes in on £220m deal with CVC

Premiership Rugby remains hopeful of completing a £220 million “landmark deal” with private equity firm CVC before Christmas, despite failing to reach agreement at a board meeting of the club owners yesterday.

Mark Mccafferty, Premiership Rugby chief executive, said a number of issues remained to be resolved – but insisted that he expected it would be “more a question of time rather than principle” for a deal to be struck.

The deal will centre on CVC, which made £8 billion from its ownership of Formula One, taking a stake of around 25 per cent in Premiership Rugby after its initial offer of £275 million for a 51 per cent stake was rejected in September.

It is thought that the outstanding issues include the share of the commercial revenue that the clubs are prepared to give up.

The cash injection is likely to ensure all 12 Premiership clubs, and Championship leaders London Irish who retain PRL shares, receive around £16 million each, a welcome boost given that they suffered collective losses of around £28.5million last year. A number of clubs, including Bath and Saracens, are also hoping to invest in stadium redevelopments.

“It is a landmark moment for us if we can get there and will usher in a new era for the club game going into next year,” said Mccafferty.

“It will allow the clubs to make the next wave of investments in the game. There are a number of clubs that are quite advanced in their stadium plans and training facilities and this can revitalise the club game further. It [the deal] comes down to a few issues and we have to work through those final remaining points.”

Ian Ritchie, the former Rugby Football Union chief executive who is now chairman of Premiership Rugby, said he hoped the investment would not be squandered on wage inflation for the players.

“There is no change to the salary whatever the outcome to these discussions,” said Ritchie. “The primary focus is on infrastructure and development and to make sure we grow the league and the clubs.”

Mccafferty also knocked down a proposal by the RFU interim chief executive, Nigel Melville – who is a former chief executive of USA Rugby – to introduce an expanded 14 or 16-club conference system to the Premiership.

“It is not on our agenda at all,” said Mccafferty.