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7 hours ago
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The Rugby Football League is in advanced talks with several private equity firms about selling a stake in Super League.
The Guardian has learned that the RFL has had multiple offers from funds interested in buying into the competition after the collapse of a proposed investment in Super League from Australia’s National Rugby League.
One of the approaches is understood to be from LionCap Global, a US-based investment firm that incorporated a UK company in May as a precursor to investing in this country. Talks have also taken place with Oakwell Sports Advisory, the London-based firm that brokered CVC Capital Partners’ investments in rugby union’s Six Nations Championship and Premiership Rugby.
A spokesperson for Rugby League Commerical, an offshoot of the RFL in charge of their commercial, sponsorship and broadcast rights negotiations, told the Guardian: “One of the workstreams emanating from the Strategic Review held earlier this year has been to explore recapitalisation of the sport, including the Super League.
“While we won’t confirm any individual discussions, there are multiple interested parties. This process is ongoing, and the outstanding events of the last weekend showed again what a good investment proposition the sport of Rugby League represents.”
Hull KR became the first new Grand Final winners for 21 years on Saturday with a thrilling win over Wigan Warriors at Old Trafford to complete a historic clean sweep of all three domestic trophies for the club. In another potential boost for the cash-strapped sport, the first Ashes series for 22 years begins this month, with England meeting Australia at Wembley on 25 October.
The potential private equity sale comes at a pivotal time for rugby league, which has been threatened with the withdrawal of Sport England funding worth £16m due to governance concerns. The RFL’s Strategic Review recommended the expansion of Super League to 14 clubs next season, with an independent panel led by Lord Caine due to announce which clubs have been successful this week.
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A source with knowledge of the investment discussions told the Guardian that the expansion process is linked to the proposed sale due to the RFL’s belief that a bigger league will lead to a higher valuation. The size of the stake the RFL is proposing to sell is not known.
The RFL considered selling part of Super League four years ago when many clubs were in financial distress after the Covid-19 pandemic in a process managed by investment bank Rothschild, but a proposed deal was eventually rejected by the RFL Board.
The NRL subsequently expressed interest in buying a stake in Super League, with talks held with the chief executive, Peter V’landys, during the rugby league roadshow events in Las Vegas in January involving Wigan and Warrington, but the RFL’s expansion plan lessened their interest.
The NRL is understood to have wanted to buy into a 10-team competition, with clubs in London and France, and a plan to rebrand it as NRL Europe. This model was rejected by several established Super League clubs in the north of England, who were concerned about being shut out of the competition.
The Super League talks follow a growing trend of private equity firms looking to buy into competitions and leagues. CVC owns 33% of Prem Rugby, while football’s Women’s Super League and the England and Wales Cricket Board have both rejected offers from private equity funds to buy into their competitions.
