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The South Canterbury Rugby Football Union’s chief executive Craig Calder is celebrating the Silver Lake deal and what it means for provincial rugby. (File photo)
South Canterbury’s rugby boss is celebrating after there was majority approval for New Zealand Rugby to sign an investment proposal with Silver Lake, saying the proposal give the union a secure financial future.
South Canterbury Rugby Football Union chief executive Craig Calder attended the special meeting on behalf of his province on Thursday in Auckland.
Calder said the signing of the deal was a “monumental day” for South Canterbury Rugby.
“This is an incredible step forward for our game in New Zealand, South Canterbury and at the grassroots level,” he said.
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JOHN BISSET/Stuff
South Canterbury won the Meads Cup final against Thames Valley at Alpine Energy Stadium in 2021. (File photo)
“We can now work with our clubs further supporting them, all the time knowing our financial future is secure.”
The special general meeting on Thursday saw 26 provincial rugby unions come together to give majority approval for New Zealand Rugby to sign an investment proposal with Silver Lake.
Silver Lake, a United States-based global technology investment firm, will pay $200m for a minority ownership percentage of between 5.71% and 8.58% in NZR CommercialCo – containing all the revenue-generating activities of the organisation.
Later in 2022, an additional co-investment of between $62.5m and $100m will be offered to New Zealand-based institutional investors, with Silver Lake underwriting (and increasing its stake) if it is not fully subscribed.
“With stronger revenue gains coming from the international game globally, the financial benefits will flow back into our region,” Calder said.
RNZ
26 provincial rugby unions came together to give majority approval for New Zealand Rugby to sign an investment proposal with Silver Lake this week. (File photo)
Silver Lake will invest $200m in NZR, of which $7.5m will go to all New Zealand rugby clubs, $2m into Māori Rugby, and $20m into provincial unions. Immediately, on completion of the legal documentation, the South Canterbury will receive $500,000 from New Zealand Rugby.
“The South Canterbury Rugby Union will decide how and where to invest these funds,” Calder said.
“Each affiliated South Canterbury club will be allocated a proportion of the $7.5 million national fund pool, based on their player numbers,” he said.
“An approval process will be implemented for clubs to apply for those funds, they will need to submit how they propose to utilise the contributions.”
Bejon Haswell/Stuff
Craig Calder hopes funding into clubs from the Silver Lake deal will make it possible to support teenage and women’s rugby. (File photo)
Calder said the union is looking forward to South Canterbury clubs being able to utilise these funds, so they can be invested or spent in the right area of the game at a club level.
“In particular at facilities, and for teenage and women’s rugby.”
He said New Zealand Rugby is also making a $60m contribution to a new Legacy Fund, an amount set aside to invest in growth, and various investments across the game.
“The legacy fund is an exciting long term funding aspect for clubs and schools in our region.
“The fund will be set up in the long term where clubs and schools can apply for financial assistance for rugby related development projects.”
As custodians of the sport, the South Canterbury union is delighted with the deal and new fund, he said.
”[It will] provide a long-term equity base for the development of the game at all levels and specifically to ensure that there is a significant amount of money for community rugby in New Zealand,” Calder said.
