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CVC's 300m investment in the 6 Nations at risk
Discussion started by Faithful_City , 09 October, 2020 09:15
CVC's 300m investment in the 6 Nations at risk
Faithful_City 09 October, 2020 09:15
Quote:
Wales Online

CVC Capital Partners' proposed 300m investment into the Six Nations could be at risk due to the home unions seeking a Government bailout in order to cope with the financial backlash of the coronavirus pandemic.

The private equity group are in talks to purchase a 14 percent stake in the Six Nations and it was thought a deal was close to getting over the line back in February.

But now, according to the Daily Mail, it is unclear whether CVC will go ahead with their sizeable investment because the Government will seek swift repayment if the unions' coffers are bolstered by a cash injection from the private equity firm.

The RFU, who stand to make approximately 70m from CVC's proposed investment, the largest share of any nation, have submitted their financial records to the Department for Digital, Culture, Media and Sport and chief executive Bill Sweeney has confirmed the Union are seeking Government money as they face losses of 60m and a reduction in revenue of 138m.


Wales have already been boosted by a cash injection of 20m from NatWest bank to help fund the four Welsh regions, but they, too, along with the Scottish Rugby Union, want financial backing from central Government.

Sources have told the Mail that talks are still ongoing over a deal, but the news that any cash injection would mean a prompt repayment to Government has thrown the whole situation into uncertainty.

CVC have committed 200m to the Gallagher Premiership, representing a 27 percent stake, and 120m to the PRO14, a 28 percent stake, within the last two years.

The report adds that should CVC back out of a deal for the Six Nations, they could choose to up their investment into the two club competitions.


Could be a bit more for The Premiership, but would this also mean any government bailout for PRL would have to be paid back sooner?

Re: CVC's 300m investment in the 6 Nations at risk
Offa 11 October, 2020 08:46
I don't know, but I believe C&J will make the best decision for us - should one be on the table.


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