Premiership for sale

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Old Hob
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Premiership for sale

Post by Old Hob » Wed Sep 05, 2018 9:06 am

The Times has a report today that Premiership Rugby Ltd is in talks reagrding a sale with CVC Capital Partners a private equity company based in Luxembourg. The price is reputed to be 275 million and negotiations have been ongoing for a year. CVC formerly owned Formula 1 and made 8bn pounds over the 10 years they had it.There will be a special meeting on Tuesday when the executive wil present the deal to the clubs.
Omnia dicta fortiora si dicta Latina

WhitecapTiger
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Re: Premiership for sale

Post by WhitecapTiger » Wed Sep 05, 2018 9:11 am

Faithless is he that says farewell when the road darkens.

Chobbsy
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Re: Premiership for sale

Post by Chobbsy » Wed Sep 05, 2018 9:19 am

Old Hob wrote:
Wed Sep 05, 2018 9:06 am
The Times has a report today that Premiership Rugby Ltd is in talks reagrding a sale with CVC Capital Partners a private equity company based in Luxembourg. The price is reputed to be 275 million and negotiations have been ongoing for a year. CVC formerly owned Formula 1 and made 8bn pounds over the 10 years they had it.There will be a special meeting on Tuesday when the executive wil present the deal to the clubs.
The 12 premiership clubs plus London Irish vote on it today
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Coops
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Re: Premiership for sale

Post by Coops » Wed Sep 05, 2018 9:20 am

Undervalues the premiership apparently, and although it could take the league to the next level - will it make the gap to championship even greater therefore making promotion even more difficult? Would there then be an argument to ring fence the premiership.

Windfall payment would be welcome by all the clubs but what do they want in return? More games abroad, more gimmicks. CVC did nothing for F1 (a sport I used to watch but walk away from it as it was soooooooo boring). Can't compare the two sports but I'd rather this didn't happen.

ourla
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Re: Premiership for sale

Post by ourla » Wed Sep 05, 2018 9:35 am

Chobbsy wrote:
Wed Sep 05, 2018 9:19 am
The 12 premiership clubs plus London Irish vote on it today
Odd. The BBC article quotes a Prem spokesperson "But a decision is not imminent." :smt017 :smt017
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RagingBull
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Re: Premiership for sale

Post by RagingBull » Wed Sep 05, 2018 9:36 am

The money from that and potential TV deals should set up us for a long time in terms of making profits (Provided we don't mess up monstrously).

But unless the Cap stays as it is the wages will go up so much and negate the cash boost if they are inflated with the deal.

Cagey Tiger
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Re: Premiership for sale

Post by Cagey Tiger » Wed Sep 05, 2018 10:31 am

RagingBull wrote:
Wed Sep 05, 2018 9:36 am
The money from that and potential TV deals should set up us for a long time in terms of making profits (Provided we don't mess up monstrously).

But unless the Cap stays as it is the wages will go up so much and negate the cash boost if they are inflated with the deal.
According to The Times (edited slightly by me) :

It is understood that the rules of of the new share issue will stipulate that the money is reinvested to make the game work.

Owners will not be allowed to pocket the £17 million and walk away. They can recoup personal debt, but no more.

There will be no second inflation of players wages.

Old Hob
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Re: Premiership for sale

Post by Old Hob » Wed Sep 05, 2018 10:47 am

Bath are against it apparently, but most others in favour. A concern is CVC's exit strategy. They will have 51% of PRL and they will at some point want to withdraw. Do they sell back to the current owners or on to someone else? There is also concern that the "assets" ie players will be more heavily controlled to generate more profit leading to bigger club/country disputes.
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ellis9
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Re: Premiership for sale

Post by ellis9 » Wed Sep 05, 2018 5:55 pm

If it means relegation and promotion is scrapped then whatever the positives are, it should be a thanks but no thanks. Relegation and promotion must stay.

Old Hob
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Re: Premiership for sale

Post by Old Hob » Wed Sep 05, 2018 10:09 pm

CVC are no sugar daddies; they would only be in it to make serious money. TV rights would probably go to sky.
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Chobbsy
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Re: Premiership for sale

Post by Chobbsy » Thu Sep 06, 2018 11:47 am

Old Hob wrote:
Wed Sep 05, 2018 10:09 pm
CVC are no sugar daddies; they would only be in it to make serious money. TV rights would probably go to sky.
Formula 1 has done OK by them
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mol2
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Re: Premiership for sale

Post by mol2 » Thu Sep 06, 2018 4:21 pm

Not sure F1 has done well other than financially, arguably turning into a parade for the sponsors and losing the fans which in the long run may kill it off. Who wan't to watch a race where only 3 teams can win and the races are taken to the back of beyond because a country will pay the circus to come to town even if the fans don't.

Short term big bucks for the clubs, then what?

The Premier league should be the top tier of club competition in English Club rugby not a stand alone franchise.
Promotion and relegation have to be integral to that.

Red Boots
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Re: Premiership for sale

Post by Red Boots » Fri Sep 07, 2018 9:28 am

I am not an accountant but my simplistic reading of the accounts have led me to this conclusion-
The latest Tigers accounts show the PR shares it holds as worth about £6m, valued by a standard method as the present value of an income stream of about £1m for 8 years discounted at 6%. The accounts also show an income from the PR of £5.4m.
Using this annual income suggests the PR shares could be valued at 5.4 times £6m which is £32.4m. The offer for half these is £275m divided by 13 which is about £21m which suggests the offer is about £5m above the value we could place on half our PR shares.

On the other hand a bird in the hand is worth two in the bush so it is tempting for debt ridden clubs.

My overall feeling is that tickets prices will rise, match times will be even more random, my TV viewing will be more costly and the England team will suffer.

ellis9
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Re: Premiership for sale

Post by ellis9 » Fri Sep 07, 2018 11:30 am

I'm sure I've read somewhere that the decision has to be unanimous and it seems Bruce Craig doesn't like the idea so unless someone or something can change his mind, then it won't be happening anyway.

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Re: Premiership for sale

Post by JP14 » Fri Sep 07, 2018 4:13 pm

Probably the only time I’m relying on Craig to do something right. 😂🙄
"Our Greatest Glory Is Not In Never Failing, But In Rising Every Time We Fall" Confucius

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