PRL And CVC On Verge Of Agreement Over Minority Stake

premiership rugby balls16
shadow bottom

27 November 2018

Premiership Rugby Ltd is close to an agreement with private equity firm, CVC Capital Partners for a minority stake in the league after rebuffing an offer in September for more than fifty percent.

Media reports this week suggest that PRL have thrashed out a new deal - set to be ratified on December 11th - after an initial offer of £275m for a 50 per cent stake was turned down with the clubs believing they were worth double that figure.

Media reports suggest that after lengthy talks, CVC are willing to pay over £200m for around 30 per cent of PRL. It is suggested that an incentive has been built into the agreement for CVC to deliver increased income from sponsorship and television rights.

If CVC replicate the kind of increased earnings that transformed F1 – which they sold to Liberty Media for around £6 billion – they will be rewarded with a bigger share of PRL.

The Premiership clubs all need to increase earnings as cumulative losses for 2017-18 were expected to reach £35m for the 12 clubs, an average of nearly £3m each.

See also...

PRL "Highly Likely" To Sell Minority Share

Majority Sale Is Not Option Preferred By Premiership

Premiership Considers £275m Offer

 

To read the full article you need to be registered.

Please Register for FREE or Login.

 
There is no charge for registration. Registration applications will be limited to those involved in the business of rugby. Please see terms and conditions sections below for more information.

Share

Follow Us

LinkedIn Twitter RSS Feed

Regular Features