It’s not a done deal yet
New Zealand Rugby’s controversial Silver Lake deal still has to overcome an impasse with the Rugby Players Association, despite its 26 provincial unions voting unanimously in favour of the $387m proposal yesterday.
NZR is waiting for sign-off from the players’ association, but sticking points remain, and it looks as though they will take some time to resolve.
NZRPA boss Rob Nichol told Stuff mediation between NZR and NZRPA wouldn’t resume for a few weeks.
‘‘We have agreed to put collective bargaining/mediation meetings on hold for a few weeks to allow us to reconnect with our respective stakeholders.’’
The two parties have been involved in mediation talks for the past three weeks without resolution – the players’ association has put up alternatives to the deal and is understood to be unhappy about an NZR proposal to reduce the players’ share of revenue.
The deal would result in the giant United States technology investment company Silver Lake taking a 12.5 per cent stake in a newly created NZR entity called Commercial LP for $387.5m, which would control NZR’s commercial interests.
Outgoing NZR chairman Brent Impey said it was ‘‘disappointing’’ the NZRPA hadn’t yet come to the party, and it would be a ‘‘terrible mistake’’ if the players didn’t support the Silver Lake deal.
‘‘The game has to change, and
Silver Lake’s capital injection would allow us to re-imagine rugby and invest in the areas of the community game that need it most, particularly teenage and women’s rugby.’’
However, he was pleased there was a unanimous vote from the provinces on the deal – NZR had required just over 50 per cent approval from them to proceed.
‘‘What a statement it was. This isn’t easy. Private equity from offshore ... there are opportunities with private equity, but there’s also risks if things don’t go well,’’ Impey said.
‘‘For the confidence [the provincial unions] showed in what we brought to them, I’m very, very proud of that.’’
Chief executive Mark Robinson said ‘‘there’s a lot at stake’’ but NZR wants to negotiate with the players’ association in ‘‘good faith’’.
There is no deadline for negotiations to end and Robinson said Silver Lake is supportive of the process.
‘‘The players are a critical partner in our game. They are essential to what we do. They are a strong part of the revenue we drive. We just need to take some time, settle down a little bit, step back from this and have another go at sitting down and talking about it,’’ Robinson said.
‘‘... [The players] care deeply about the game, they want to do the best thing they think for it as well and we’re trying to do the same.’’
Under the deal, up to $43.75m of the sale price would be committed to working capital for Commercial LP, along with a proportionate contribution from Silver Lake.
Another $39m would be distributed to stakeholders such as provincial unions, while a legacy fund would be set up to ensure the sustainability of rugby at all levels.
Whanganui Rugby chief executive Bridget Belsham supported the Silver Lake deal. She said it would be highly beneficial for her province.
‘‘We believe it’s the best future . . .for the game. Being in a heartland union, that’s solely around community rugby,’’ she said.
‘‘We know in order for the game to be successful and have a future, we needed this deal to go through.
‘‘Our vote ... was around being able to invest in the game – our clubs, schools and community. Our clubs need support.’’
The 12 Heartland provincial unions went public earlier this month to reveal why New Zealand Rugby should give the deal the nod.