Rugby Australia is making a historic move to attract private equity investment in order to improve their financial situation and give the struggling sport a much-needed boost. This comes as the organization faces financial challenges, including a $27 million deficit in 2020 due to the impact of the pandemic. The move is expected to inject much-needed cash into the sport and provide a second chance for Rugby Australia.
In contrast to New Zealand Rugby, which is currently embroiled in a dispute with their players’ association over a deal with private equity firm Silver Lake, Rugby Australia is making progress with their private equity pitch. They are planning to sell between 10-15% of their assets, a move that could help them follow the successful path of the New Zealand Rugby’s settlement for 12.5% investment.
The decision to attract private equity investment comes at a crucial time for Rugby Australia, as they are facing challenges with their national team, the Wallabies. The team recently suffered their 19th straight defeat in the Bledisloe Cup series and is currently ranked No. 7 in the world. Rugby Australia has also made changes to their eligibility laws in an attempt to improve the team, a move that could have significant implications for the sport.
Overall, Rugby Australia’s move to attract private equity investment represents a significant step forward for the organization and the sport as a whole. It has the potential to provide much-needed financial stability and support for Rugby Australia, while also offering opportunities for growth and development in the future. This historic move has the potential to transform the future of rugby in Australia and pave the way for a stronger, more successful sport.
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