Possible float of NZ Rugby??

All Blacks players union and Forsyth Barr proposing 5% sale of NZ Rugby for NZ investors as alternative to the Silver Lake sale.

More details here.

"Forsyth Barr believes the proceeds from an NZ Inc IPO Offer of 5 percent of income generating assets also allow NZR to make a capital contribution to Commercial Co of $50m as per the Silver Lake proposal, and result in NZR reserves of between $136m and $154m, significantly more than their reserves policy target (40 percent of their cost base) and pre Covid-19 reserve levels."

Slim chances of success or inspired idea?

I would make a donation to the cause. A return on investment would be a bonus.

Given Forbar’s track record of floating duds and dead beat companies (Feltex, CBL, Intueri, MPG etc etc etc), NZ Rugby better stay well clear of this proposal.

Seriously.

Is the purpose of NZ Rugby to generate financial returns to shareholders or to administer the game within NZ? These 2 things are mutually exclusive such that one group benefits at the expense of the other. IMHO it would be a mistake to go down this route when viewed from the grass roots perspective. There are still a number of volunteers within the Heartland Unions who make the weekly event what it is. In my view to float a part of the organisation would be a mistake, unless someone can put up a compelling case?

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Originally Posted by Balance

Given Forbar’s track record of floating duds and dead beat companies (Feltex, CBL, Intueri, MPG etc etc etc), NZ Rugby better stay well clear of this proposal. Seriously.

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I share your scepticism. It is also possible that David Kirk has a conflict of interest juggling dual roles as Chair of Forsyth Barr and President of the Players Assn.

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Originally Posted by Ferg

Is the purpose of NZ Rugby to generate financial returns to shareholders or to administer the game within NZ? These 2 things are mutually exclusive such that one group benefits at the expense of the other. IMHO it would be a mistake to go down this route when viewed from the grass roots perspective. There are still a number of volunteers within the Heartland Unions who make the weekly event what it is. In my view to float a part of the organisation would be a mistake, unless someone can put up a compelling case?

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I have soccer mad grandchildren who spend copious time playing x- box UEFA European league on-line games. One key reason given for the proposed 'partnership' with the Silver Lake is to earn the NZRA increased financial returns via developing and promoting improved on-line rugby games and merchandising on a world wide scale to entice young people. Think Manchester United with a huge fan and revenue base in Asia for instance.

I'm not sure an NZ sale would achieve this, but then again I'm not sure if NZRA's additional revenue claims from Silver Lake are realistic.

As a grass roots NZ Rugby fan..... I hope NZRA get this right.

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Originally Posted by Left field

I share your scepticism. It is also possible that David Kirk has a conflict of interest juggling dual roles as Chair of Forsyth Barr and President of the Players Assn.



I have soccer mad grandchildren who spend copious time playing x- box UEFA European league on-line games. One key reason given for the proposed 'partnership' with the Silver Lake is to earn the NZRA increased financial returns via developing and promoting improved on-line rugby games and merchandising on a world wide scale to entice young people. Think Manchester United with a huge fan and revenue base in Asia for instance.

I'm not sure an NZ sale would achieve this, but then again I'm not sure if NZRA's additional revenue claims from Silver Lake are realistic.

As a grass roots NZ Rugby fan..... I hope NZRA get this right.

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Not sure they have got much really right since March last year...

Quote:

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Originally Posted by Left field

I share your scepticism. It is also possible that David Kirk has a conflict of interest juggling dual roles as Chair of Forsyth Barr and President of the Players Assn.



I have soccer mad grandchildren who spend copious time playing x- box UEFA European league on-line games. One key reason given for the proposed 'partnership' with the Silver Lake is to earn the NZRA increased financial returns via developing and promoting improved on-line rugby games and merchandising on a world wide scale to entice young people. Think Manchester United with a huge fan and revenue base in Asia for instance.

I'm not sure an NZ sale would achieve this, but then again I'm not sure if NZRA's additional revenue claims from Silver Lake are realistic.

As a grass roots NZ Rugby fan..... I hope NZRA get this right.

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You mean Fifa that is the game the grand kids will be playing. Most other sports have lucrative franchising deals with gaming companies like EA and 2k. Football, Basketball, Ice hockey, baseball, American Football all have licenced games that are hugely popular.

There are a few cricket options but none anywhere near as popular as the above. It is doubtful Rugby would be very lucrative either, very much a minority sport, although New Zealanders will argue otherwise.

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Originally Posted by ratkin

It is doubtful Rugby would be very lucrative either, very much a minority sport, although New Zealanders will argue otherwise.

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They would have to be thick, or totally incapable of understanding statistics to argue with that - although you are undoubtedly correct.

If that game between the Crusaders and Brumbies was a sample of rugby to the world neither scheme would fly.

Frosty crook! Stay away!

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Originally Posted by Balance

Given Forbar’s track record of floating duds and dead beat companies (Feltex, CBL, Intueri, MPG etc etc etc), NZ Rugby better stay well clear of this proposal.

Seriously.

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Totally agree. Forbar are flying a huge kite here and confusing the unwashed as usual.
Take the Silver deal .

ForBar just playing on the widespread naivety and ignorance with the populist drivel - most likely it will happen... as the inept NZRU management cave to the petulant mob of players... who will win? ForBar

I confess that my views are coloured as I am a long term rugby fan, however, as soon as I heard of the Silver Lake proposal I didn't like it .

2 reasons ... I was sure that if the NZRU was selling part of itself, there would be plenty of NZ investor interest, and secondly, I did not believe that a US investor fund would have the same level of attachment that a NZ investor would have. Sure it must add up on all the financial yardsticks, but we have seen the ruthlessness of US investors with English football clubs willing to ditch the Premier League. NZ owners would be more in tune with NZ fans.

I was surprised that it took so long for an alternative to be put up, but now that it has, I don't care that it is ForBar. If not them it would be someone else.

I will invest if given the opportunity

zacman

Some interesting RNZ interviews this morning.

1.) Rod Oram discussing both the Silver Lakes and NZ/Players options FYI.

Listen to it here.

2.) Interview earlier this morning with David Kirk.

Here's the link to today's RNZ Kirk interview.

Coming up..... an important meeting this Friday with NZ Rugby and Players to discuss their proposals.

At least they are talking together.