Silver Lake buying a stake in the ABs?
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The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
It was a deal that screamed short-term fix, which was underlined when the greatest advocates of short-termism, the provincial unions, voted unanimously to jump into bed with Silver Lake and cuddle up one hand each on the family silver between them.
The unions were promised a windfall when the deal went through and – with their pokies money drying up, sponsorships shrinking and crowds dwindling – of course they said yes to Silver Lake's cash, deaf to the dissenting voice of the Rugby Players' Association (RPA) which was asking pertinent questions about the longer-term implications of a deal that had no performance measures nor a defined exit strategy and no detail on how the US firm was going to double the revenue as it was forecasting.
Former NZR chairman Brent Impey famously said the professional players would be scoring an own goal if they didn't support the transaction, saying the $3.1bn valuation placed on the business was unprecedented in the field of private equity investment in sport and an unbeatable deal.
It appeared to be all part of a narrative pushed by NZR to paint the RPA as greedy and self-interested in blocking the original deal, because that's what happens in the post Trump-era – those who perceive they hold absolute power rely on a suite of tricks such as pejorative and bombastic statements and accentuating the fear of missing out to wield it.
Four months on and Silver Lake, who have since July been communicating directly with the RPA, have radically reshaped the deal from a smash-and-grab raid to one that could potentially have significant long-term benefits. They have upped their evaluation – believed now to be $3.6bn – are willing to take just a 7.5 per cent stake, with a timeline and mechanism to trigger their exit having been discussed.
The greatest own goal in the history of sport would in fact have been agreeing to the supposed deal of a lifetime that NZR were pushing back in April.
Short-termism is such a powerful movement, however, that the provincial union chairs were in Wellington this week, pitchforks in hand and burning effigies of RPA boss Rob Nichol, demanding to know from the NZR where their Silver Lake deal (cash) is.
The questions they should be asking are why this new, better deal wasn't on the table back in April and what sort of advice are NZR receiving from their investment bank advisers, Jefferies, who, it is believed, stand to make $6m if agreement is reached with Silver Lake.
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
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The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
@booboo said in Silver Lake buying a stake in the ABs?:
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
I don't want people thinking I'm supportive of the Silver Lake deal, but was that report written by someone that does covid-19 or treasury modelling..?
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The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
It was a deal that screamed short-term fix, which was underlined when the greatest advocates of short-termism, the provincial unions, voted unanimously to jump into bed with Silver Lake and cuddle up one hand each on the family silver between them.
The unions were promised a windfall when the deal went through and – with their pokies money drying up, sponsorships shrinking and crowds dwindling – of course they said yes to Silver Lake's cash, deaf to the dissenting voice of the Rugby Players' Association (RPA) which was asking pertinent questions about the longer-term implications of a deal that had no performance measures nor a defined exit strategy and no detail on how the US firm was going to double the revenue as it was forecasting.
Former NZR chairman Brent Impey famously said the professional players would be scoring an own goal if they didn't support the transaction, saying the $3.1bn valuation placed on the business was unprecedented in the field of private equity investment in sport and an unbeatable deal.
It appeared to be all part of a narrative pushed by NZR to paint the RPA as greedy and self-interested in blocking the original deal, because that's what happens in the post Trump-era – those who perceive they hold absolute power rely on a suite of tricks such as pejorative and bombastic statements and accentuating the fear of missing out to wield it.
Four months on and Silver Lake, who have since July been communicating directly with the RPA, have radically reshaped the deal from a smash-and-grab raid to one that could potentially have significant long-term benefits. They have upped their evaluation – believed now to be $3.6bn – are willing to take just a 7.5 per cent stake, with a timeline and mechanism to trigger their exit having been discussed.
The greatest own goal in the history of sport would in fact have been agreeing to the supposed deal of a lifetime that NZR were pushing back in April.
Short-termism is such a powerful movement, however, that the provincial union chairs were in Wellington this week, pitchforks in hand and burning effigies of RPA boss Rob Nichol, demanding to know from the NZR where their Silver Lake deal (cash) is.
The questions they should be asking are why this new, better deal wasn't on the table back in April and what sort of advice are NZR receiving from their investment bank advisers, Jefferies, who, it is believed, stand to make $6m if agreement is reached with Silver Lake.
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The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
@booboo said in Silver Lake buying a stake in the ABs?:
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
I think that was the NZRPA commissioned report. That's why they were so against it, their pencil necks said it was a very hard deal with no guarantees. Just a 'we'll double your income'. That's it
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@booboo said in Silver Lake buying a stake in the ABs?:
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
I think that was the NZRPA commissioned report. That's why they were so against it, their pencil necks said it was a very hard deal with no guarantees. Just a 'we'll double your income'. That's it
@machpants said in Silver Lake buying a stake in the ABs?:
@booboo said in Silver Lake buying a stake in the ABs?:
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
I think that was the NZRPA commissioned report. That's why they were so against it, their pencil necks said it was a very hard deal with no guarantees. Just a 'we'll double your income'. That's it
It was a smash and grab deal by a bunch of investment Bankers. Those guys are never your friends. Mark Robinson, Brent Impey blinded by money up front (chump change for those guys) just bought into the narrative of we need investment and sold the Unions a pup. The Bankers eliminated their downside risk, talked up their market contacts but NZR were taking all the risk - that’s not investment that’s just Finance.
What you can’t forgive is their arrogance in presenting it as a done deal as if they were saving NZ Rugby ( we are the heroes ) and dismissing opposition. This is the same way NZRFU treated Australian over Super rugby - the Aussies just gave them the finger.
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@machpants said in Silver Lake buying a stake in the ABs?:
@booboo said in Silver Lake buying a stake in the ABs?:
The Herald was leaked a report which showed that had NZR taken that deal with Silver Lake as it stood in April, they would most likely be running at an operating loss by 2025 and living off the investment returns of their cash reserves.
Who wrote the report and what was their agenda?
I think that was the NZRPA commissioned report. That's why they were so against it, their pencil necks said it was a very hard deal with no guarantees. Just a 'we'll double your income'. That's it
It was a smash and grab deal by a bunch of investment Bankers. Those guys are never your friends. Mark Robinson, Brent Impey blinded by money up front (chump change for those guys) just bought into the narrative of we need investment and sold the Unions a pup. The Bankers eliminated their downside risk, talked up their market contacts but NZR were taking all the risk - that’s not investment that’s just Finance.
What you can’t forgive is their arrogance in presenting it as a done deal as if they were saving NZ Rugby ( we are the heroes ) and dismissing opposition. This is the same way NZRFU treated Australian over Super rugby - the Aussies just gave them the finger.
@kev Can't say I've followed this deal closely - but, when you look how poorly NZR performs in comparatively simple things like running fair and balanced competitions, I have zero faith in them not being taken to the cleaners by Silver Lake.
As you point out - their Super rugby negotiations with the Aussies are a glaring example - but, I've been nominated for a broken record for criticising a variety of others.
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@machpants said in Silver Lake buying a stake in the ABs?:
https://www.stuff.co.nz/sport/rugby/300485991/nz-rugby-light-at-end-of-tunnel-for-silver-lake-deal
Um maybe, now there maybe light at the end of the tunnel
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As I’ve said before, if Silver Lake can add commercial clout it ought to be prepared to sign up to a share of future revenue growth, that is have no share in existing revenue.
If further semolians are required, some form of preference share ought to be capable of delivering the necessary.
As pointed out by Dr. Egon Spengler it is calamitous to cross the streams.
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now lets watch and see if rugby as we know it slowly unravels in NZ or the rot is stopped, hopefully the latter
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now lets watch and see if rugby as we know it slowly unravels in NZ or the rot is stopped, hopefully the latter
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
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@duluth said in Silver Lake buying a stake in the ABs?:
It certainly looks alot better for NZ rugby (&NZR) than the initial deal, which appeared to my non business mind very much favoured Silver Lake
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@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
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@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
@antipodean said in Silver Lake buying a stake in the ABs?:
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
IF it is done well (big fat IF), then it should generate more value than you give away. Leverage the brand, generate way more than 10% more revenue; Silver Lake win, we win, and we have a nice nest egg to carry us through.
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@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
@antipodean said in Silver Lake buying a stake in the ABs?:
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
we should immediately buy Roger Tuivasa-Sheck
wait...
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@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
@antipodean said in Silver Lake buying a stake in the ABs?:
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
Considering that NZR went into covid with millions in the bank I don't see it happening. One thing NZR had done is made the money to as far as possible, hopefully this deal means we have more money to use wisely :crossed_fingers:
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@antipodean said in Silver Lake buying a stake in the ABs?:
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
IF it is done well (big fat IF), then it should generate more value than you give away. Leverage the brand, generate way more than 10% more revenue; Silver Lake win, we win, and we have a nice nest egg to carry us through.
@nzzp said in Silver Lake buying a stake in the ABs?:
@antipodean said in Silver Lake buying a stake in the ABs?:
@taniwharugby said in Silver Lake buying a stake in the ABs?:
@kiwiwomble hopefully those at the top of the tree dont get any bonuses...
Lets see if they squander it like the ARU did.
IF it is done well (big fat IF), then it should generate more value than you give away. Leverage the brand, generate way more than 10% more revenue; Silver Lake win, we win, and we have a nice nest egg to carry us through.
Read some article NZ Herald today about the Players costing the Provinces money with this new deal. Probably the stupidest thing I have ever read - then it was only the Herald who resemble Fox News more and more every day. The only thing worse would be that it was true and we have Provinces who think the original deal was better?
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