Home Rugby Premiership Club Owners To Approve £200m Minority Stake Bid By CVC

Premiership Club Owners To Approve £200m Minority Stake Bid By CVC

LONDON, ENGLAND - MAY 26: George Kruis of Saracens wins the lineout ball during the Aviva Premiership Final between Exeter Chiefs and Saracens at Twickenham Stadium on May 26, 2018 in London, England. (Photo by David Rogers/Getty Images)

Premiership Club owners are expected to vote in favour of selling a minority stake to the private equity firm, CVC for more than £200 million, according to a report in the Guardian

The company originally proposed a takeover bid, which was rejected by the club owners at a meeting two months ago. The revised bid would see CVC run the commercial side of the Premiership, but not the league itself, thus keeping the deal within World Rugby’s regulation on governing ownership.

CVC, who had a majority stake in Formula 1 from 2006 to 2007, have been meeting with Premiership officials over the last number of weeks and it is expected that their bid will be put to the club owners at a meeting on December 11.

The injection of funds would be widely welcomed by the 12 clubs with only Exeter currently reporting a profit. It is believed that the increased expenditure on clubs is due to increased wages costs.

As part of the deal, each club will receive £20 million with the money being used for infrastructure and to pay off debts.

A number of clubs already have a number of projects in the pipeline. Bath are hoping to redevelop the Recreation Ground while Harlequins are planning a new stand at the Twickenham Stoop.

Leicester hope to start a £22m project next summer which will see a hotel and a car park built alongside their Welford Road stadium.

 

About Marisa Kennedy

Marisa is a Digital Journalist with Pundit Arena. You can contact her at marisa@punditarena.com or on Twitter