The New Zealand Rugby Union (NZR) on Thursday approved a €122 million deal with California-based investment fund Silver Lake, ending a two-year battle for the commercial rights of the famed All Blacks.

The 89-to-1 vote, which gives Silver Lake a substantial stake in those commercial rights, was described by NZR manager Stewart Mitchell as a "monumental moment in New Zealand rugby history".

The agreement provides for the creation of a commercial company

"It's taken us a long time to get to this point and it's because our members care deeply about our game, our communities and our people," he added.

The agreement provides for the creation of a commercial company, majority-owned by the federation, but in which the American company would invest 200 million New Zealand dollars for a 5.8% stake.

An additional investment of NZ$100 million will then be offered to New Zealand-based institutional investors and Silver Lake's stake could increase to 8.58% depending on the equity stake.

The fund was already part of the group of investors who bought the UFC, and acquired just over 10% of City Football Group, owner of the Manchester City club.

“Respect for values ​​and traditions”

Leading up to the vote, New Zealand's 26 provincial unions sought to ensure through meetings that they would not be sidelined and that there would be financial fallout for New Zealand rugby at all levels.

"Digital technologies are transforming sport and the media, presenting many opportunities for rugby, and we are ready to help seize them while respecting the values ​​and traditions of the game in New Zealand," assured the chief executive of Silver. Lake, Stephen Evans.

Rugby is considered an integral part of the social fabric in the archipelago.

Winners of three of nine World Cups, the All Blacks are one of the most successful teams in world sport, but have failed to capitalize on their commercial potential.

Investing in women's and regional rugby

Stewart Mitchell hopes to reap the rewards of this partnership "in the next four to five years."

In exchange for its expertise to better promote New Zealand rugby and the All Blacks brand internationally, Silver Lake could get its hands on the huge commercial rights currently valued at two billion euros.

The objective for NZR is to be able to invest money in women's rugby and regional rugby, while creating a fund to ensure the long-term financial stability of a federation that has often been in deficit in recent years.

NZR notably suffered 20 million euros in losses in 2020 due to the pandemic.

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