WORLD RUGBY’S PROPOSED Nations Championship is now off the table but rugby is facing into a period of change nonetheless.
The Six Nations has a major decision to make imminently, after private equity firm CVC Capital offered £500 million [€555 million] for a 15% stake in the tournament, according to the Daily Telegraph.
As one of the member unions in the Six Nations, the IRFU has been pondering the value of accepting the investment from a private source, which would mean relinquishing some of the power the union possesses but also swell their coffers.
Ireland were Grand Slam champions in the Six Nations last year. Source: James Crombie/INPHO
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CVC involvement would likely result in a move to the Six Nations no longer being shown exclusively on free-to-air television, with some games being screened on subscription service channels, or potentially a streaming service provided by the Six Nations itself.
It’s understood that a deal with CVC would also involve the November Tests hosted by the Six Nations unions.
Whatever the terms of any agreement between the Six Nations and CVC, it appears that investment from a private equity firm is now a case of when rather than if.
CVC has already paid £230 million [€255 million] for a 27% stake in the Premiership, pumping new funds into England’s top clubs, while it’s believed that the firm is in talks with the Guinness Pro14 about a similar deal.
Speaking yesterday in Dublin, IRFU CEO Philip Browne stated that investment from private equity firms “is the reality of the here and now,” while accepting that the Six Nations being screened on free-to-air television is important.
“It has to be,” said Browne. “The big challenge is trying to maintain the balance between free-to-air and the more lucrative pay-per-view or going right out into the digital space where people can buy highlights.
“My kids don’t go to matches, they’d much rather be at home watching it on the television or on the laptop – it’s curious. It’s trying to find that balance.
“The reality is there isn’t the same revenue available from selling rights to free-to-air platforms or broadcasters.”
Browne said there has been “a paradigm shift in the way sports media rights are being purchased” and pointed to the value of the Six Nations unions “aggregating” their rights to make the product more attractive.
“We ended up last autumn with matches kicking off at the same time on different channels,” said Browne of last year’s November Tests. “That is not a very rational way of selling the sport.”
Philip Browne at the IRFU’s AGM yesterday. Source: Ryan Byrne/INPHO
The IRFU chief executive also underlined that digital platforms must be considered in the same vein as television has been in the past.
“We’re seeing it in the States and the Far East, where it’s all about digital platforms with tablets and iPhones,” said Browne.
“For people of my generation, it becomes a bit difficult to keep up but the reality is that people are consuming sport in a very different way, across different mediums and platforms.
“That requires a significant change in the way we present our sport and that requires a significant investment.
“To some extent, that’s why there’s a lot of interest in private equity… that allows you to make the investment required to deliver across all these channels and platforms.