Majority of players and public want the All Blacks to be New Zealand-owned

Opposition to New Zealand Rugby’s plans to sell a 12.5% stake US private equity firm Silver Lake is seeing rising sentiment among many players as well as the wider public to keep the All Blacks entirely New Zealand-owned.

US-based Silver Lake offering $387.5 million for its stake, New Zealand Rugby is still seeking support from the New Zealand Rugby Players' Association (NZRPA) for the sale.

With NZRPA suggesting an alternative option to raise capital by a 5% listing on the New Zealand stock exchange, former All Blacks and Crusaders captain and Canterbury coach Reuben Thorne has shared his personal concerns about the lack of information about NZ Rugby’s current financial situation, stating “the major issue with NZ Rugby selling 12.5% of its commercial arm to Silver Lake is the uncertainty around the long term implications.

“A short term cash injection could lead to long term problems with governance and profit sharing. Most of us as former players and the wider public are not privy to the finer details of the agreement, so it is difficult to be completely assured that this is entirely in the best long term interests of NZ Rugby.

“NZ Rugby needs money at all levels for the game to survive. This appears at first glance to be a viable option that will provide an immediate cash injection as well as potential long term growth and sustainability if managed well.”

NZ Rugby has struggled to balance its books in the last 14 years since Thorne retired, challenged by operating in a relatively small market with small stadiums that do not generate enough income to sustain the game.

Thorne advised “this is the same for the ABs as well as the Super and provincial teams. It is not sustainable in its current format. The big carrot for NZR to partner with Silver Lake is their supposed ability to grow the game/audience and reach a huge untapped support base.

“NZR relies heavily on the All Blacks to generate income through sponsorship, tv rights and international gates.

“This is then expected to filter down and support the game at all levels. If the NZR can leverage more income by reaching a wider base of international supporters in new markets, as proposed by Silver Lake, then, it could become financially sustainable.

“The floating of a small percentage of NZR on the stock exchange, so Kiwi companies and the public could buy into it is an option.

“There seems to be a real desire from the players and the public to keep the All Blacks entirely New Zealand owned. This has obvious social benefits such as connection to the team and national pride.

“Corporate benefits probably are that ownership and control remain in New Zealand and this may be more attractive to local sponsors. It may also motivate a suitable New Zealand company to provide the same or similar level of support and technology to reach the untapped markets that are out there.”