New Zealand Rugby agrees All Blacks investment from US private equity firm Silver Lake

New Zealand Rugby has advised that it has secured a lucrative investment from US private equity firm Silver Lake - worth $200 million - after obtaining agreement from the New Zealand Rugby Players Association.

Under the deal, Silver Lake will invest $200 million into a new joint entity which will own the All Blacks’ commercial rights, which will remain majority owned by New Zealand Rugby, with a stake of more than 90%.

Agreed after months of debate, New Zealand Rugby (NZR) described the deal as “transformational”, providing money for priorities such as women’s and grassroots rugby, as well as creating a legacy fund ensuring financial stability well into the future.

NZR Chief Executive, Mark Robinson commented “this partnership presents rugby with an extraordinary opportunity to secure its future and unleash its true potential - we are truly excited by what we can achieve together with Silver Lake’s world class capabilities.”

The agreement to the investment followed months of discussions between NZR, the New Zealand Rugby Players Association (NZRPA) and other stakeholders, with the players blocking unhappy at private ownership of the All Blacks brand.

Acknowledging these discussions, NZR Chairman, Stewart Mitchell said in a statement "I want to acknowledge that the journey to get here hasn't been easy at times.

“There was healthy debate and some adjustments by all parties, but always with the good of the game at the heart of this process," Stewart Mitchell, chairman of New Zealand Rugby (NZR) said in a statement.

David Kirk, the former All Black captain and NZRPA Chairman, added “this is a pivotal moment for rugby in New Zealand.”

The statement also said that under the new agreement, NZR will "retain full control over rugby as well as the commercial strategy", with Silver Lake remaining a minority investor.

Speaking about the investment, Silver Lake Managing Director, Stephen Evans stated “digital technologies are transforming all sports, and we look forward to bringing our global network and resources to help New Zealand rugby drive innovation and take advantage of all the opportunities ahead.”

The deal values NZR CommercialCo, the new holding company for the revenue of All Blacks and other New Zealand rugby associations, at $3.5 billion.

Later this year, New Zealand-based institutional investors will be given the opportunity to take part in the sale of a stake in NZR CommercialCo of up to $100 million.

Silver Lake, which manages around US$90 billion of assets, already has other sport-related investments in its portfolio.

It has a stake of around 10% in City Football Group Limited, which owns or has significant stakes in several football clubs around the world, including Manchester City.

Other investments include stakes in the New York Knicks basketball team and the New York Rangers ice hockey team while in December, it acquired a 30% stake in the Australian Professional Leagues (APL).

It is also a backer of sports retailer Fanatics and Endeavor, the owner of the Ultimate Fighting Championship.

Media reports suggest Rugby Australia is also expected to agree a private equity investment.

Image: All Blacks star Richie Mo'unga with fans at Auckland's Eden Park. Credit: Eden Park.