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SL set for cash injection ?

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Saw a headline from today’s League weekly suggesting Super league could be set for a private cash injection. Not had chance to pick up a copy as yet. Anyone know what was said or is it more pie in the sky ? 

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This was mentioned in the pre-match stuff on Thursday I think, but no real details as far as I remember

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You would wonder what a PE firm would see in Super League without some pretty drastic changes in the obvious areas such as P+R, geography, broadcast etc. 

The good thing is that it cant be an asset stripping exercisers there are next to no assets to strip

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I think there is far more upside for a PE firm to get involved in Rugby League compared to what we recently saw in Rugby Union.

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We will get all excited about this and then find out it's a firm no one has heard off putting in £30K to sponsor the corner flags.

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12 minutes ago, Mr Frisky said:

We will get all excited about this and then find out it's a firm no one has heard off putting in £30K to sponsor the corner flags.

To be fair that outcome covers all bases :kolobok_ph34r:

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1 hour ago, Mr Frisky said:

We will get all excited about this and then find out it's a firm no one has heard off putting in £30K to sponsor the corner flags.

Does it matter whether we’ve heard of them or not? Isn’t £30k from one company not worth the same as £30k from another?

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4 hours ago, leaguefan13 said:

Saw a headline from today’s League weekly suggesting Super league could be set for a private cash injection. Not had chance to pick up a copy as yet. Anyone know what was said or is it more pie in the sky ? 

Reading the article, Elstone has only had initial discussions.  Doubt it's worth getting excited about just yet.

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Given that the standard deal is for PE firms to take over commercial control of a competition including rules and format, I'd stay far far away, doubly so if it's who I think they are.

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What constraints on the use of the money would there be?

There are already rumours that Worcester,London Irish and Newcastle in ru will simply reduce their existing debt.I suspect Sale would like to do something similar.

In league could Leeds use it to simply reduce their debt on the new stands?

Could Lenegan and Davy get back some of their current losses?

Could Cas use it to patch up their tatty ground for another couple of Leeds.

Could Salford reduce their debts whilst playing in front of 3,000 spectators.

Obviously I would welcome additional revenue but on the basis of past investments,the clubs will gobble up the money,with absolutely nothing to show for it in 2/3 yrs time.What conditions will their be over how and what the money is used for? Should it go to any loss making clubs? Should it go to any clubs with 1960's facilities? Should it go to clubs with less than 4,000 weekly spectators? Dont know the answers but past history would worry me.

 

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20 minutes ago, Moove said:

Is this the Hearn's again?

I suspect it's CVC. CVC have bought a stake in Prem RU, including taking control of structure, organisation and some rules. They are negotiating for a stake in P14 RU and it is reported that they want to create a pan-British Isles competition. If they're sniffing round SL then it's a short but terrifying jump to a bad conclusion. And the SL club owners aren't called Super Greed for nothing.

Edited by Chamey

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There was a thread in April that suggested clubs getting £150k each from a commercial sponsor.

I can’t see it being CVC, although I suspect if it was it wouldn’t cost them anywhere close to what their 30% in RU. If it was, we’d be in 1895 territory and there’d be a lot more noise than a rumour. 


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1 minute ago, cookey said:

What constraints on the use of the money would there be?

Possibly many

2 minutes ago, cookey said:

In league could Leeds use it to simply reduce their debt on the new stands?

Yes, possibly

3 minutes ago, cookey said:

Could Lenegan and Davy get back some of their current losses?

Possibly not but they possibly could .

4 minutes ago, cookey said:

Could Cas use it to patch up their tatty ground for another couple of Leeds.

Depending on the outcome it could be an option

6 minutes ago, cookey said:

Could Salford reduce their debts whilst playing in front of 3,000 spectators.

Yes, but possibly no too.

7 minutes ago, cookey said:

What conditions will their be over how and what the money is used for? 

Depends upon just what constraints are placed on how the money can be used.

8 minutes ago, cookey said:

Should it go to any loss making clubs? 

its an option at this stage but not certain

10 minutes ago, cookey said:

Should it go to any clubs with 1960's facilities? 

If the conditions are right then its a possibility

11 minutes ago, cookey said:

Should it go to clubs with less than 4,000 weekly spectators?

With the right criteria in place and full agreement it's an option that could be explored

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2 minutes ago, Manx RL said:

Possibly many

Yes, possibly

Possibly not but they possibly could .

Depending on the outcome it could be an option

Yes, but possibly no too.

Depends upon just what constraints are placed on how the money can be used.

its an option at this stage but not certain

If the conditions are right then its a possibility

With the right criteria in place and full agreement it's an option that could be explored

So, what are ya saying?

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Charmey,if I read your note correctly,please tell me why a company would want to invest in a sport,only then to change that sport to another sport? Ludicrous.

However,you can only sell the family silver once.Sell it,waste it and you cant sell it again.

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4 hours ago, cookey said:

Charmey,if I read your note correctly,please tell me why a company would want to invest in a sport,only then to change that sport to another sport? Ludicrous.

However,you can only sell the family silver once.Sell it,waste it and you cant sell it again.

Private equity is mental. Sharp suits by day, straitjackets by night.

Take the 13 Prem RU clubs, add Leeds, Hull, St Helens, Warrington, Wigan and the P14 RU (minus Italy and SA) and you have a pan British Isles league, nice and lucrative for a big tv contract.

4 conferences of 7. Home and Away your own conference (12 games), Home or away a second conference (7), then your equivalent finisher in the other two conferences (2). That gives you 21 games, welcome to NFL British Isles style.

However it all falls apart when you consider that the five crossover clubs would lose 90% of support overnight, and given history it would be mad, however the total cost of putting it together would be half a billion or less, so they'd consider it a low risk high reward gamble, knowing that they could likely salvage most of the initial money even if it went badly.

I've worked with enough small and medium sized businesses who have investors who seemed like they only meant the best only to see them absolutely screw the company with mad agendas and ideas, hence it's always worth bearing in mind the worst case.

Edited by Chamey
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I hope we don’t go down the same road RU has on this. It just looks to me like you are selling your future income for cash upfront. I can’t see that ending well. 

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17 minutes ago, Chamey said:

Thanks for that. Very interesting.

I hope SL has some decent independent advisors on this.


Build a man a fire, and he'll be warm for a day. Set a man on fire, and he'll be warm for the rest of his life. (Terry Pratchett)

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I cant imagine that If it were CVC they would be looking to merge SL with RU. Doesn't really make sense. I can see the added value to RU as a sport to having one national competition but the cost of essentially buying a whole sport to get Leeds (who already have an RU club, playing at headingley that they could have for pretty much free) Wigan, Sts, Wire and Hull doesn't really seem worth it. 

What I would think is much more likely is that they see the value in buying a sport they can wrap up and package and sell across quite a vast market. Especially because they could also look to buy the NRL rights and possibly championship/L1 rights for a relative pittance. 

You could, come 2021, if you already owned the SL tv rights, for maybe £5/6/7m a year have a full Northern Hemisphere version of 'Watch NRL' you could sell to the UK, France, Canada who would have their own sides in the comp, you would have the possibility of an expanded WCC and the option to sell this as an OTT service directly, as an app to Sky similar to how Spotify and Netflix can be accessed through their box, as a channel to Sky, BT, Virgin as a package to Amazon or Netflix globally. 

If you also happened to own the RU Premiership, Pro14, you could probably pick up the Super Rugby, Currie Cup, Top14, NH rights pretty cheap two and all of a sudden you have a rugby package you can leverage as content to sell to a provider like Sky, BT, directly to consumers.

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1 hour ago, bobbruce said:

I hope we don’t go down the same road RU has on this. It just looks to me like you are selling your future income for cash upfront. I can’t see that ending well. 

Its a weird one because this can be pretty much the worst excess of right-wing vampire capitalism. Looking to strip assets and funding for that quick profit and destroying jobs and the underlying business. 

It could just be, some vulture capital scumbag firm seeing a distressed business it can pick the bones of and in 5 years time when the carcass has been stripped clean the sport is dead. 

On the other hand, what would they actually be buying? Super League isn't really a normal business, it doesn't really exist as a real business. It has no assets for them to really strip, if the sport has a good idea of how much it is worth, then the only real way for an investor in SL to make money from it is to grow that pie. They really need to see SL as undervalued in some way for them to make money. There isn't much point in paying out (say) £300m for 30% of £1b over the next 25 years. You would have just lost a load of money to inflation.

I would be cautiously optimistic about this happening because for a long time many people have argued that SL hasn't really taken advantage of its commercial potential, that the game has further growth potential in terms of new areas (not least france and now NA, along with the WCC) and if there is a group of investors who see that if they invest X they can grow the game by Y then that is possibly exactly what the game needs.

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2 hours ago, cookey said:

Charmey,if I read your note correctly,please tell me why a company would want to invest in a sport,only then to change that sport to another sport? Ludicrous.

However,you can only sell the family silver once.Sell it,waste it and you cant sell it again.

Depends upon outcomes.   They are only interested in maximizing their financial take and are very successfully at that. They have no interest in the sport long term purely as an investment to take profit from.  Nowt wrong with that if they increase the monies flowing in the sport, take their profits from the revenue each year, then sell on the rights again at a profit.  They have no interest in the long term only in their investment window of typically 2-7 years, although F1 lasted 10 years.

They will load up with loans, revenue used to pay those loans, whilst extracting profit themselves. Of course they need to grow the revenue but as the F1 teams found that meant less money to the teams as the loans and their profit took more monies.  The sport has less people watching than previously as they have expanded the sport of F1 outside of Europe but lessened the TV viewing to less than 30% of what it was.  Never-the-less they have made plenty of monies plus the sport has increased revenues, although the teams not so.

If their investment doesn't build as they expect, they may well look how to maximse and expand the sport of Rugby as distinct from worrying about RU/RL, they may see it as a good financial bet to expand Premership as is by including say to 5 northern teams to create a country wide Rugby sport to sell to media rights of.

Not saying it would happen but one could see a scenario if one is only interested in financial side with no interest in the sport except as a financial opportunity and nothing else.

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