Six Nations Rugby and CVC announce partnership
Six Nations Rugby has announced that it has agreed a long-term strategic partnership with CVC Fund VII.
Six Nations Rugby is the official organising body of the Six Nations Championships and Autumn Internationals which includes the Men’s, Women’s and Under-20’s Six Nations Championships.
The objective of the partnership is to invest to grow and develop the game; to further enhance the sporting spectacle of all the tournaments, the teams and the brands; and to build the data, technology, and broader commercial capabilities to support these ambitious plans. These steps will ensure continued development of these prestigious tournaments for the benefit of existing fans, and to attract a new more diverse and global fan base, which will support the wider rugby community, including the players, clubs, and unions, to achieve their full potential over the long-term.
CVC will bring to the partnership its significant experience in sports, as well as its global network, working alongside the unions and the Six Nations Rugby management team, to deliver on ambitious growth plans for the Six Nations Championships and Autumn International series. Under the terms of the agreement the six unions will retain sole responsibility for all sporting matters as well as majority control of commercial decisions. The CVC Fund VII investment into Six Nations Rugby will be paid to the six unions over a period of five years, reflecting the long-term nature of the partnership. This capital investment, combined with the expected growth of the tournaments, will help the unions to support the development of rugby at all levels in their respective territories over the years ahead.
Ben Morel, CEO of Six Nations Rugby commented: “This is a hugely positive development and I want to express my thanks to all parties involved. In particular, our six unions and federations, for the strong sense of unity and collaboration they have shown throughout this process to create a unified Six Nations Rugby and agree the partnership with CVC.”
“The Six Nations Championship is steeped in rugby tradition, stretching back to 1883, and together with the Women’s, Under-20’s and Autumn International series, is synonymous with all the excitement, passion and competitiveness that rugby has to offer. This external investment is an important validation of what Six Nations Rugby has achieved to date and is a key next step as we invest to grow the game on the world stage.”
“When we started this journey, our aim was to ensure we found the right strategic partner, who can add real value and is committed to a long-term relationship. CVC recognises the exciting potential in the Six Nations Championships and Autumn International series, and they are aligned with our vision for the future. CVC has a proven track record of partnering to support growth strategies in sport and is uniquely positioned to help promote collaboration across the sport of rugby for the benefit of fans, players, clubs and unions and all other rugby stakeholders”.
RFU reaction
Bill Sweeney, RFU CEO said: “We are delighted that the Six Nations Unions have unanimously decided to partner with CVC. Their expertise will help to grow rugby union through the evolution of improved competitions and events and the growth of a more diverse fan base.
“CVC capital of around £95m over the next five years will allow the RFU to invest in revenue-generating activity to continue to support the community and professional game for many years to come.
“The RFU has benefitted from the Government’s business rates holiday and the furlough scheme however, we will not be the direct beneficiary of Government loans or grants, these will flow through us to the Community game. We have undertaken significant restructuring to reduce our cost base. Despite this with 85% of our revenue coming from hosting international matches at Twickenham, revenues have reduced by around £140m in the last year and we expect a loss of around £30-35m this financial year.
“Subject to the conclusion of the deal, our CVC capital investment priorities will be asset development in the community game and England Rugby. This could for example include club, ground and stadium development, data and digital investment and opportunities to further grow the women’s game. As a result of significant revenue losses, we will also apportion some CVC capital in the short term to pay down debt and rebuild reserves."
