Rugby Australia secures private equity $80 million loan

Rugby Australia has announced the successful conclusion of a capital raise program that will see it secure an $80 million loan as part of an agreement with Pacific Equity Partners (PEP).

Designed to underpin investment in the game during a crucial upcoming period the five-year deal sees the sport maintain its independence while indicating private equity may take a stake in Rugby Australia.

The announcement followed Rugby Australia having lost Harvey Norman as a major sponsor on Thursday.

Advising that pursuing a debt capital path was the right decision for the game, Rugby Australia (RA) Chief Executive, Phil Waugh stated "given the visibility we have on revenues from the British and Irish Lions and World Cups, it became clear that debt capital was going to be the best solution for rugby.

"This does not compromise RA's options down the road, which could include private equity investment. This approach ensures that we retain 100% of the commercial revenues from the game, that all capital raised will go into the game, and that RA controls its own direction during this next period of growth and development."

With the revenues expected from the British & Irish Lions Tour in 2025 and home Rugby World Cups in 2027 and 2029, this new upsized and flexible credit facility is expected to bridge the period through those events, allowing Rugby Australia to accelerate its key growth initiatives.

The additional investment will go to critical areas of the game’s development, with high-performance integration, women’s rugby, community and pathways being areas of focus.

PEP is an Australian-based private capital partner that understands the importance of Rugby in Australia, and the potential for growth in the coming years. It is one of the largest and most active private market investors in Australia with approximately $8 billion in assets under management.

Waugh added “in PEP, we have selected a partner committed to helping us on this path - they are likewise excited about this next chapter for rugby in Australia and support our vision and plan. They bring deep experience across different sectors, and investment types, including private equity and debt, and we look forward to working with them.”

Images: The Wallabies at Suncorp Stadium (top, credit: Suncorp Stadium) and a scrum as the Wallabies take on Georgia on 9th September at Stade de France, Paris during the 2023 Rugby World Cup (below, credit: Shutterstock).