Former Formula 1 owners CVC Capital Partners are reported to be in talks to acquire Premiership Rugby – top division of English RugbyUnion system – in a deal worth $355 million (£275 million).
The Luxembourg-headquartered private equity firm is currently negotiating the takeover of Premiership Rugby in a groundbreaking which will see it buy 51% shares. Premiership League owners, according to The Times, will hold a board meeting next week to discuss a potentially ground-breaking offer which is the biggest of its kind in the history of club rugby.
The deal will see the 12 clubs of the English top tier rugby, many of whom have suffered heavy losses in the last season, get a significant cash injection.
The clubs suffered combined losses of $36.8 million (£28.5m) after 2016-17 season except for Exeter Chief which was the only club to declare profits. The clubs have sought to raise extra capital to take the league to the next level.
The league sources, according to The Guardian, have predicted that the total losses of the 2017-18 returns could be close to 20% worse, blaming the rise in the league’s wage cap, which had been increased in order to allow Premiership clubs to compete at the top end of European rugby.
However, CVC’s overall valuation of the league at around $750 million (£550m) reportedly falls short of the expectations of league owners. There are also concerns that the deal could create further friction between the Rugby Football Union (RFU) and the domestic teams.
In January 2017, CVC sold Formula 1 holding company Delta Topco to Liberty Media in a deal worth $8 billion comprising of cash, stock, and convertible debt.
https://goo.gl/bQVrdj
No comments:
Post a Comment