Silver Lake buying a stake in the ABs?
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@gt12 said in Silver Lake buying a stake in the ABs?:
@Rapido said in Silver Lake buying a stake in the ABs?:
NZRU 'buy' 1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever.
I think that article states that it increased to 7.5% after the second round?
Yes. They increase it from 1.9% to 7.5% (which is an extra 5.7%) in return for $62.5m from Silverlake. And NZRU's revenue last year was about $240m.
Hence: "1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever."
And if revenue even stays the same - They'll (we'll) have to fork out an extra $13.6m next year for the pleasure of that 60m this year. And then the following year do similar, and the next, and the next ...
@Rapido said in Silver Lake buying a stake in the ABs?:
@gt12 said in Silver Lake buying a stake in the ABs?:
@Rapido said in Silver Lake buying a stake in the ABs?:
NZRU 'buy' 1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever.
I think that article states that it increased to 7.5% after the second round?
Yes. They increase it from 1.9% to 7.5% (which is an extra 5.7%) in return for $62.5m from Silverlake. And NZRU's revenue last year was about $240m.
Hence: "1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever."
And if revenue even stays the same - They'll (we'll) have to fork out an extra $13.6m next year for the pleasure of that 60m this year. And then the following year do similar, and the next, and the next ...
OK, but I think it increased from 5.7% to 7.5%.
We were already in the hole for 5.7% before round two.
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@Rapido said in Silver Lake buying a stake in the ABs?:
@gt12 said in Silver Lake buying a stake in the ABs?:
@Rapido said in Silver Lake buying a stake in the ABs?:
NZRU 'buy' 1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever.
I think that article states that it increased to 7.5% after the second round?
Yes. They increase it from 1.9% to 7.5% (which is an extra 5.7%) in return for $62.5m from Silverlake. And NZRU's revenue last year was about $240m.
Hence: "1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever."
And if revenue even stays the same - They'll (we'll) have to fork out an extra $13.6m next year for the pleasure of that 60m this year. And then the following year do similar, and the next, and the next ...
OK, but I think it increased from 5.7% to 7.5%.
We were already in the hole for 5.7% before round two.
@gt12 said in Silver Lake buying a stake in the ABs?:
@Rapido said in Silver Lake buying a stake in the ABs?:
@gt12 said in Silver Lake buying a stake in the ABs?:
@Rapido said in Silver Lake buying a stake in the ABs?:
NZRU 'buy' 1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever.
I think that article states that it increased to 7.5% after the second round?
Yes. They increase it from 1.9% to 7.5% (which is an extra 5.7%) in return for $62.5m from Silverlake. And NZRU's revenue last year was about $240m.
Hence: "1 quarter of a single year's worth of their own revenue, upfront. For the price of giving away 5.7% of their own revenue forever and ever."
And if revenue even stays the same - They'll (we'll) have to fork out an extra $13.6m next year for the pleasure of that 60m this year. And then the following year do similar, and the next, and the next ...
OK, but I think it increased from 5.7% to 7.5%.
We were already in the hole for 5.7% before round two.
Ah, .... crap (for me).
Slightly better, for NZRU.
So that means the more correct maths would be a 1/4 of a years revenue for 1.79%.
Using last years revenue number (and keeping it static) that would be buying that $62.5m for the price of $4.2m a year.
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@BerniesCorner said in Silver Lake buying a stake in the ABs?:
@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
there seems to be some confusion as to exactly what the deal is and what its trying to achieveSums up the AB rugby organization and selection process between 2019- early 2023 as well. Confidence is gone.
No it just sums up the people that are confused. Lets face it , it's the Fern (or any rugby forum) if the NZR (or in Aus, Wales, etc etc) make any decision, all those that sit at home and read headlines would of done much better, and of course haven't been tolsd what's going on while perusing their chosen websites etc? As I said go to almost any forum in any country, it's exactly the same. I am constantly amazed at how many different ways that Australian rugby can be run in Aussies site, and found same in Welsh one I used to go into. The only thing they all have in common is they would all do it so much better, and the ones who have run coached etc) rugby for last 20 odd years were wrong.
Hey but it's all good , it's the internet.@Dan54
No the coach selection process was non existent, the successful SR coach side-lined for ages then NZR getting panicky that he might be going overseas and doing a deal. Then some last minute level headed assistant replacements giving us a good WC. Now we have a forever and ever equity loss that we are stuck with. -
@Dan54
No the coach selection process was non existent, the successful SR coach side-lined for ages then NZR getting panicky that he might be going overseas and doing a deal. Then some last minute level headed assistant replacements giving us a good WC. Now we have a forever and ever equity loss that we are stuck with.@BerniesCorner said in Silver Lake buying a stake in the ABs?:
@Dan54
No the coach selection process was non existent, the successful SR coach side-lined for ages then NZR getting panicky that he might be going overseas and doing a deal. Then some last minute level headed assistant replacements giving us a good WC. Now we have a forever and ever equity loss that we are stuck with.Which selection process was non existent? Because we didn't agree with who they selected doesn't make it non existent. I may of missed one appointment where there wasn't a selection process, but it wasn't in my memory, perhaps you can enlighten me when one was just appointed without unless you talking about Hansen?
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Launched last year on the eve of the World Cup, NZR+ was hoping to win one million registrations by the end of the tournament.
By the week of the quarter-finals, it had just 60,000 and that was after spending an estimated $2m plus on content that featured Hollywood director Taika Waititi and various former All Blacks such as Dan Carter, Richie McCaw, Andy Ellis and George Bower.
This is the time for the US fund manager to shine – to deliver on the presentations it made in 2021 and play an influential role in helping NZR secure a much-improved broadcast contract.
Since Silver Lake came on board, it has produced no new or innovative ways to grow revenue and increasingly, those who supported bringing the US fund manager in as an equity partner, have told the Herald that they are beginning to think that significantly upping the value of the broadcast deal is the only trick in the investment house’s playbook.
But several sources have said that the difficulty of improving the current deal, can’t be underestimated.
To start, Silver Lake’s 7.5 per cent equity stake means that NZR needs to up the next deal to $108.1m just to have the equivalent amount of money.
NZR chief executive Mark Robinson has, however, said that audience numbers for the early rounds of Super Rugby Pacific are up about 25 per cent on last year and Sky has never hidden the fact that rugby continues to help it win and retain subscribers.
But without the fear of losing the rights, few analysts expect Sky will be willing to offer anywhere near the $100m it currently pays.
There is an assumption that Sky will be looking to reduce the price to around $80m-a-year, leaving Fenton having to find close to another $30m-a-year just to hold the current financial position.
As the Herald understands it, Fenton will target winning a major uplift in the price of the international rights to off-set any reduction in the home market.
It is thought that the current value of the international rights is only about US$10m – through deals with the UK and France which Sanzaar negotiated.
Nations Cup will be needed to increase revenue.
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BTW:
In selling the Silver Lake transaction to its member unions, NZR said it would set up seven new business initiatives, one of which would be NZR+ and that it forecast it would make accumulated profits of $20.4m from this platform across its first four years.
Now this is the scenario:
The decision to effectively decommission NZR+ as the weight-bearing pillar of the content strategy is an indication that neither the audiences nor the associated data have yet been generated – which is just one of many issues that Fenton will be wrestling with when he begins renegotiating NZR’s broadcast contract in the next few months.
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BTW:
In selling the Silver Lake transaction to its member unions, NZR said it would set up seven new business initiatives, one of which would be NZR+ and that it forecast it would make accumulated profits of $20.4m from this platform across its first four years.
Now this is the scenario:
The decision to effectively decommission NZR+ as the weight-bearing pillar of the content strategy is an indication that neither the audiences nor the associated data have yet been generated – which is just one of many issues that Fenton will be wrestling with when he begins renegotiating NZR’s broadcast contract in the next few months.
@Tim so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....and didn;t think they needed to do much at all to actually raise interest in the AB's or NZ rugby at all
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@Tim so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....and didn;t think they needed to do much at all to actually raise interest in the AB's or NZ rugby at all
@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....
NZR+ is a free platform
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@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....
NZR+ is a free platform
@Duluth what really? i thought it was subscription based....it was going to make a $20M profit on advertising?
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@Tim so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....and didn;t think they needed to do much at all to actually raise interest in the AB's or NZ rugby at all
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@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
so it seem like they just though there was loads of people with money burning a hole in their pocket just looking for a way to spend it on AB content.....
NZR+ is a free platform
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@Kiwiwomble I'm very sceptical of any talk of "international fans", as rugby is a hard game to understand, and very few people watch or play it overseas. Much different to different flavours of motor-sport or fighting sports.
@Tim especially if we're not doing anything different to "sell" the ABs...there are definitely out there that will just jump on a bandwagon (T swift and the chiefs)....but you have to do...something...to sell it to them...have we tried introducing Taylor to scooter?
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Launched last year on the eve of the World Cup, NZR+ was hoping to win one million registrations by the end of the tournament.
By the week of the quarter-finals, it had just 60,000 and that was after spending an estimated $2m plus on content that featured Hollywood director Taika Waititi and various former All Blacks such as Dan Carter, Richie McCaw, Andy Ellis and George Bower.
This is the time for the US fund manager to shine – to deliver on the presentations it made in 2021 and play an influential role in helping NZR secure a much-improved broadcast contract.
Since Silver Lake came on board, it has produced no new or innovative ways to grow revenue and increasingly, those who supported bringing the US fund manager in as an equity partner, have told the Herald that they are beginning to think that significantly upping the value of the broadcast deal is the only trick in the investment house’s playbook.
But several sources have said that the difficulty of improving the current deal, can’t be underestimated.
To start, Silver Lake’s 7.5 per cent equity stake means that NZR needs to up the next deal to $108.1m just to have the equivalent amount of money.
NZR chief executive Mark Robinson has, however, said that audience numbers for the early rounds of Super Rugby Pacific are up about 25 per cent on last year and Sky has never hidden the fact that rugby continues to help it win and retain subscribers.
But without the fear of losing the rights, few analysts expect Sky will be willing to offer anywhere near the $100m it currently pays.
There is an assumption that Sky will be looking to reduce the price to around $80m-a-year, leaving Fenton having to find close to another $30m-a-year just to hold the current financial position.
As the Herald understands it, Fenton will target winning a major uplift in the price of the international rights to off-set any reduction in the home market.
It is thought that the current value of the international rights is only about US$10m – through deals with the UK and France which Sanzaar negotiated.
Nations Cup will be needed to increase revenue.
Yet the NZRPA supported this deal didn't they. That's looking more and more like a total disaster
Maybe the NZR Board members responsible for it should all resign. As should anyone else who supported it. Although if it's as bad as it seems to be it's too late now. As its unlikely there is any way to get out of it
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Yet the NZRPA supported this deal didn't they. That's looking more and more like a total disaster
Maybe the NZR Board members responsible for it should all resign. As should anyone else who supported it. Although if it's as bad as it seems to be it's too late now. As its unlikely there is any way to get out of it
@Winger that would be dependant on what they were sold, if silver lake isn't doing what they said they would to grow things then THEY should be held to account
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Yet the NZRPA supported this deal didn't they. That's looking more and more like a total disaster
Maybe the NZR Board members responsible for it should all resign. As should anyone else who supported it. Although if it's as bad as it seems to be it's too late now. As its unlikely there is any way to get out of it
@Winger said in Silver Lake buying a stake in the ABs?:
Yet the NZRPA supported this deal didn't they.
They were very sceptical of it, and forced a review of the deal. That lead to a reduction of the revenue share sold to Silver Lake, which was sold at a much higher price.
I wouldn't blame the NZRPA for this deal. They wanted NZR to explore raising money locally instead.
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@Winger that would be dependant on what they were sold, if silver lake isn't doing what they said they would to grow things then THEY should be held to account
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@Winger that would be dependant on what they were sold, if silver lake isn't doing what they said they would to grow things then THEY should be held to account
@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
@Winger that would be dependant on what they were sold, if silver lake isn't doing what they said they would to grow things then THEY should be held to account
But so what? I doubt if there is a clause to cancel the agreement if SL doesn't perform. I kind of think NZR might have been taken for fools. Just on the little I have read on it. So, it could in fact be a wonderful deal.
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@Kiwiwomble Holding a well-funded US private equity firm to "account". Not easy!
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@Tim very true....but at very least the poor semi amature PU board members shouldnt be punished if it was to be found silverlake had dropped the ball
@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
found silverlake had dropped the ball
Thye haven't though. From their viewpoint. It's a small up-front investment for guaranteed ongoing good returns it seems.
I just hope its not as terrible as it seems from NZR viewpoint. 7.5% is a lot of money to loss year after year
poor semi amature PU board members shouldn't be punished
Aren't 6 out of 9 appointed. So, they shouldn't be incompetent. But if proven to be just that they should go. Along with the 3 too. We don't want fools on the board of NZ rugby
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@Kiwiwomble said in Silver Lake buying a stake in the ABs?:
found silverlake had dropped the ball
Thye haven't though. From their viewpoint. It's a small up-front investment for guaranteed ongoing good returns it seems.
I just hope its not as terrible as it seems from NZR viewpoint. 7.5% is a lot of money to loss year after year
poor semi amature PU board members shouldn't be punished
Aren't 6 out of 9 appointed. So, they shouldn't be incompetent. But if proven to be just that they should go. Along with the 3 too. We don't want fools on the board of NZ rugby
@Winger my understanding of the deal was they had actions in growing the revenue too, it wasn't a straight equity injection (we give you some money and you give us some profit later), silverlake sold the idea of tapping into new revenue streams they had access too...and we havent seen any of that
