CVC injects £365m into Six Nations rugby tournament

CVC will secure a seventh of Six Nations Rugby's equity, working alongside the rugby unions of England, France, Ireland, Italy, Scotland and Wales, which will together retain six sevenths. The £365m investment will be paid to the six unions over a period of five years, in a move that CVC said reflected the long-term nature of the partnership. 

CVC will invest via CVC Capital Partners VII, which closed on €15.5bn in June 2017, though the firm closed its eighth-generation fund on €21.3bn in July 2020.

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. All parties said in a statement that the deal would ultimately aim 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 plans". CVC and the unions also said they would aim to attract a more diverse and global fan base.

The deal has been a long time in the making, with Six Nations Rugby initially receiving a £500m bid from CVC for a 30% stake in March 2019. In February 2020, the Financial Times reported the firm was expected to acquire a 14% stake for £300m. The proposed deal was further delayed by the pandemic shutdown and the related financial assistance sought by the unions, according to various media reports.

CVC and the unions have highlighted the GP's experience with sports investments as a driving force behind the partnership. CVC is perhaps most well known for its investment in Formula One, which is widely reported to have resulted in very strong returns for the GP. 

On the rugby front, CVC acquired a 27% shareholding in the Gallagher Premiership's commercial arm, Premiership Rugby, for £220m in late 2018. The firm also acquired a 28% stake in Guinness Pro14 last year for approximately £120m.

More recently, CVC invested in the International Volleyball Federation (Fédération Internationale de Volleyball, FIVB), the Switzerland-headquartered governing body of volleyball. The deal was reportedly valued at around $300m.

The GP is also involved in another long-running attempt to seal a deal for a major sports league: CVC teamed up with Advent and FSI to invest in Italian football league Serie A in €1.7bn deal, which seemingly inched closer to the finish line in November last year. However, the consortium most recently put its bid on hold, Italian-language daily Il Sole 24 Ore reported in early March, following more delays as the November offer was blocked when seven of the 20 clubs making up Serie A voiced opposition to the deal (14 clubs have to vote in favour for the media rights newco for it to go through).

Company
Six Nations Rugby is the official organising body of the annual Six Nations championships and Autumn International Series. Working in partnership with its member unions and federations in England (RFU), France (FFR), Ireland (IRFU), Italy (FIR), Scotland (SRU) and Wales (WRU), Six Nations Rugby has responsibility for the promotion and operation of both tournaments, as well as the negotiation and management of their centralised commercial rights.

The Six Nations championship is the oldest international rugby tournament in the world, the parties said in a statement. Its original incarnation dates back to 1883, later expanding to its current format of six teams in 2000. It currently consists of three annual tournaments: men, women and under-20s.

People
Six Nations Rugby – Ben Morel (CEO).

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• Topics
• Expansion
• Consumer
• UK / Ireland
• CVC Capital Partners