The Money Monster

IS AN AWARD-WINNING WRITER BASED IN THE UK.

- RICHARD BATH

CHANCES ARE YOU’VE PROBABLY never heard of CVC Capital Partners. The private equity group may have US$85 billion under management, and own companies as diverse as luxury watchmaker Brietling, the Malaysian lottery and UK car breakdown service the RAC, but with the exception of a controversial period in which they were part-owners of Formula One, their investments have been largely below the radar.

Nor have CVC previously been involved in rugby. Until now, that is. In December 2018, they bought a 27 per stake in England’s Premiership Rugby for £230 million [NZ$460m]. In September 2019 CVC concluded a £300 million deal with the Six Nations that saw it cede 15 per cent of its commercial rights in a deal about which World Rugby boss Brett Gosper says he has “concerns”. In November 2019 CVC paid £120m for a 27 per cent stake in the Pro14 competition in which the top Irish, Scottish, Welsh and Italian clubs play, with CVC taking over the commercialization of the competition, particularly in the areas of sponsorship and broadcasting.

Quite what this all means has been a subject of enormous conjecture. There has been talk of a move into the North American market. Of the Six Nations no longer being free-to-air. Of the Champions Cup coming down from 20 teams to 18. Of a Northern Hemisphere versus Southern Hemisphere club play-off. Of a European league. If CVC got a tenner for every outlandish theory then they would already have made their money back. That there will be change seems beyond doubt, given CVC’s tenure in charge of Formula One and their habit of making a substantial profit on their investments. It is important to remember that private equity companies exist solely for the purpose of making a profit, and that all of the above rugby-related activity will be directed to that end.