So it turned out that selling 12.5% of the national sport wasn't actually the greatest deal the world had ever seen
PLUS: The Week That Was and the Weekend That Will Be; and Notes from The Oval #9
Question everything.
If there’s one lesson to come from the Silver Lake saga, one of the most drawn out sports administration power plays in New Zealand history, it’s to do the above.
The mechanics of the deal to sell a stake of New Zealand Rugby’s commercial interests to the US private equity giant Silver Lake have been thrashed out and require ratification from the country’s unions. Despite noises of “underwhelmed” unions it is fait accompli - NZR cannot let this bleed into another winter. It’s reputation and relationships are at stake.
Underwhelming is the wrong adjective anyway. It should be embarrassing for unions. They were the ones who signed off on the original deal1, which is strikingly different to this one.
They were the ones buying everything then-chairman Brent Impey was selling when he went on his media lap of honour, saying it was not only the greatest deal in history, but the only deal.
It would be, he said, the greatest own goal in history if 12.5 per cent of the national sport wasn’t sold to the US for $387 million.
Way too many people drank the Kool-Aid without once asking why the cordial smelled of almonds.
It didn’t pass the players’ sniff test, however, not when you had strong voices like David Kirk, who runs an equity fund, challenging the numbers and structure of the original deal, and Richie McCaw and others challenging the assertion they were being greedy.
It became an adversarial situation and the players won by a TKO.
Silver Lake invests $200 million into the sport through an NZR-controlled subsidiary company in the form of a bond that can convert to equity after three years. Investment opportunities up to $100m will be offered to New Zealand-based institutional investors - something that was written off as unworkable by NZR not so long ago.
There will be an immediate injection of $37m cash into the game, mostly through the unions (referred to by some in the game as “the bribe”) - not as much as originally proposed but given the unions’ spending history, this is a good thing. The community game needs investment, yes, but smart and efficient investment.
After the investment runs, Silver Lake could own, roughly, between 5.5-9 percent of NZR’s commercial entity. NZR also has the option of buying back equity.
So working back from the “best deal ever”, we now have a situation where NZR is valued higher, sells off less of its equity and encourages investment from New Zealand institutions. It also has the option to piggyback on any investments Silver Lake makes in rugby across the globe (except Australia, which would indicate the Americans are close to a deal across the Tasman, too).
It’s a radical refit that demonstrates how committed Silver Lake was to be part of the global rugby picture.
It’s a radical refit that makes you wonder why the unions, and others, didn’t ask a lot more questions a year ago.
Notes from (north of) The Oval #9
Matt Henry would have to be filmed kicking his cat across the kitchen floor to miss out on consecutive man of the match awards after adding an unbeaten half century batting at No11 to his 7-23 yesterday.
New Zealand finished day two in a Hagley Oval wonderland having South Africa, who they haven’t beaten for 18 years, 34-3, a mere 353 runs behind avoiding an innings defeat.
Oh yeah, Henry nicked out Proteas captain Dean Elgar for a binary score for the second time in two days.
I took a dive into his stop-start career yesterday but there’s one element to Henry that Statsguru will never cover: even when he’s not playing, the guys like having him around.
Now all he’s done is gone and created a headache. If you go on overall record, he’s very much the fifth of New Zealand’s best five seamers, but do you stay with the hot hand?
Tom Blundell needed runs. He got them. That doesn’t quite cover it though.
He was superb, both marshalling the tail and hitting a crisp array of back foot shots.
He’s one of the few modern cricketers to hit a genuine hook, with the weight transferring back and pirouetting on the back foot.
He fell agonisingly short of his third test century but that landmark was less important than putting his stamp on the middle order.
Somebody did get to three figures though and I had to check myself because the original draft of this newsletter did not mention Henry Nicholls, who rode his luck and unflappable temperament to 105.
Nicholls is a curious batter. It’s easier to point to his weaknesses than his strengths but he’s just turned 30, has eight centuries and an average tickling 40.
Today’s not the day, but he warrants closer inspection down the track.
A reader asked whether James Anderson was up with Southee in terms of fast bowling fielders.
Short answer: not quite.
Anderson is athletic and he’s probably better at shying at the stumps but he only ever fields in the slips for a rest; Southee is a genuinely excellent slipper, a fine outfielder and someone you want where the ball is going.
Here’s another thing Southee should be - New Zealand’s No 11.
Rain is forecast tomorrow but if there is cricket there will be a Notes from The Oval tomorrow for paying subscribers.
THE WEEK THAT WAS
These Winter Olympics needed a signature moment and they got the one they deserved: a 15-year-old girl distraught on the ice, let down horribly by those charged with caring for her, by the sporting ethics of her country and by a spineless International Olympic Committee that has done nothing to counter that country’s cheating bar taking their flag. Sport at its most rotten.
“They’re scary motherf*****s to get involved with. We know they killed [Washington Post reporter and U.S. resident Jamal] Khashoggi and have a horrible record on human rights. They execute people over there for being gay. Knowing all of this, why would I even consider it? Because this is a once-in-a-lifetime opportunity to reshape how the PGA Tour operates.”
That’s Phil Mickelsen talking about his role in helping to establish the rebel Saudi Golf League. There’s so much to unpack in that one quote, taken from this Fire Pit Collective piece, which is previewing an imminent Mickelsen biography.
Basically he’s saying, “Yeah I know it’s a murderous regime but I’m happy to use them to get my way and by ‘my way’ I mean more money.” Never mind the fact Khashoggi and those executed for being gay would love to have a life, let along a once-in-a-lifetime opportunity to cream more millions.
I would say one thing: I’ve only ever been mildly interested in golf, but this issue is fascinating.
Did Israel Adesanya win?
Yes he did. The referee raised his arm. Next question.
Should he have won?
I have no clue, but this fella on YouTube forensically dissected the fight and came to the conclusion that no, on balance, Robert Whittaker should have won.
It’s a long video but the crux of it is round two, which the judges gave to Adesanya. TheWeasle has analysed every blow and every grapple and said Whittaker actually edged it. He does mention it was super close and that in no way can Whittaker claim to be robbed.
Unless you’ve shut yourself off completely from American media, including Netflix, you can’t help but have heard of the Opioid crisis that has gripped large swathes of the country.
It hit baseball in 2019 with the death of Los Angeles Angels pitcher Tyler Skaggs. It’s a grubby, sad story and this week a jury found the team's comms director guilty of distribution of Fentanyl, the drug that killed Skaggs. Eric Kay will spend a minimum 20 years in prison.
THE WEEKEND THAT WILL BE
Cricket, lots of it (see notes from The Oval below). That has cut down a lot of my other viewing options. If the game goes into a fourth day, you might even hear my occasional asides as part of the Alternative Commentary.
New Zealand v South Africa, Christchurch, Sat-Mon 11am, Spark Sport
Super Rugby Pacific starts tonight. There’s a battle between Fiji Drua and Moana Pasifika as to which team will be our second favourite. Drua get first crack. Back in the rugby fortress of Queenstown, there’s a tasty derby double-header but let’s be honest… it’s not the same.
Waratahs v Fiji Drua, Sydney, tonight 9.45pm, Sky Sport 1
Chiefs v Highlanders, Queenstown, tomorrow 4pm, Sky Sport 1
Crusaders v Hurricanes, Queenstown, tomorrow 7pm, Sky Sport 1
I’m told it’s time to keep an eye on the Phoenix. Well, maybe just half an eye because there’s a lot going on. If you prefer your football English breakfast style there’s two tasty matches.
Wellington Phoenix v Sydney FC, Sydney, tomorrow 7pm, Sky Sport 7
Manchester City v Tottenham, Etihad Stadium, Sunday 6.30am, Spark Sport
Leeds United v Manchester United, Elland Rd, Monday 3am, Spark Sport
Sad to see it get shunted to the outer reaches of channels, but watching New Zealand’s best track and field athletes at the Sir Graeme Douglas athletics meet is worth carving out some time for.
Sir Graeme Douglas International, Auckland, Sunday 3.30pm, Sky Sport 9
Several sources have told me that some of the bigger unions were uncomfortable with elements of the original deal but felt they had no choice but to sign, much like the situation they find themselves in now.
Brilliant work as always, I wasn't going to sign up but the quality of writing got me in the end. Really glad you got the Phil Mickelson quote in. Surely this would be in the running for most horrendous sportsperson quotes on the record of all time? What could beat a guy basically saying 'yeah I know they're scary motherfuckers who killed a guy and probably a lot more...but what about those guys in Florida who stole my media rights! I'll show them!' And hasn't he now alienated both sides?