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T2s should try to buy shares in the 6N

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T2s should try to buy shares in the 6N

Postby iul » Thu, 02 Jan 2020, 20:42

I was thinking... 6N is in discussion to sell 15% of the shares to CVC (the same private fund investors who have bought 27% of the Premiership and Pro14) for a sum of 300 million GBP.
Unions that have state support should make a bid for those shares. If the competition was expanded to 7 each union would own about 14.3%. If it was expanded to 8 each would own 12.5%.
If some union would offer them 300 million or two unions would offer 500 million perhaps they'd be inclined to accept.
Looking at it from the perspective of the new members even at that price it would make sense financially too. IIRC the central distributions from the TV revenues and other central sponsorships is about 15 million Gbp/ union. That's a 5% return on investment, and that's before other revenues, such as increased sponsorships and ticket sales.
It would make sense to give it a try

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Re: T2s should try to buy shares in the 6N

Postby victorsra » Thu, 02 Jan 2020, 21:16

Back in 2014 I said this: viewtopic.php?f=3&t=940&p=61624&hilit=stakeholder#p61624

World Rugby/Rugby Europe could break the cartel if they become stakeholders. With 25% of the 6N Ltd WR/RE could push for a 8-teams expansion and open 2 places for rotative teams. In a first moment we'd have an 8N with 6 core teams (owners that won't be relegated) and 2 teams that could be relegated. Obviously woudn't be that easy and clearly, after CVC, definitly realy expensive...
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Re: T2s should try to buy shares in the 6N

Postby Tobar » Fri, 03 Jan 2020, 02:17

It’s a noble idea but at $300 million I’m not sure what Union can get into that investment

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