Rugby Australia has been warned Super rugby golf equipment could die if the game pursues a $200m non-public fairness funding plan within the coming years.
In a stark warning to Rugby Australia chairman Hamish McLennan who has been brazenly speaking in regards to the potential for promoting off the sport to personal traders, native officers have pointed to the struggles within the UK the place a number of golf equipment have folded simply 4 years after large money injections.
A CODE Sports Investigation into the state of rugby union has uncovered division inside the ranks, not solely across the $5m Joseph-Aukuso Suaalii deal but in addition in how the sport builds a legacy from the 2027 rugby World Cup and looming determination round Private Equity.
Two well-known English golf equipment, Worcester Warriors and Wasps, collapsed this season as a consequence of insurmountable debt regardless of non-public fairness companies CVC Capital Partners sinking $376m into the English Premiership 4 years in the past.
Several sources spoke to CODE Sports on the situation of anonymity, however stated there was real fears inside the sport that any transfer to Private Equity creates a “hunger games” state of affairs the place each determination relies upon revenue and loss.
“If it’s a loss-making exercise, they won’t be as attached to the five teams as Rugby Australia is,” one supply stated.
“They have no allegiance to the history and culture of clubs, they invest in sport because they want influence, and expect return on their money.”
As one other main powerbroker stated: “PE will give the game the immediate sugar hit we need. What we don’t know is what the game lookslike five years from now.”
READ THE FULL STORY ON HOW PRIVATE EQUITY COULD KILL CLUBS
Source: www.news.com.au
