The confirmation of the long-awaited partnership deal between the Six Nations and private equity group CVC could provide a windfall of nearly £45 million to Scottish Rugby.
After negotiations lasting well over a year which were complicated by delays due to the pandemic, CVC have ploughed in £365m for a seventh-share in rugby’s most historic and popular annual tournament.
The Luxembourg-based group have already made sizeable investments into the Gallagher Premiership and the Guinness PRO14 club competitions in rugby, but this is their biggest move to date. The deal also covers each of the six nations’ Autumn International Series matches.
Scotland’s share half of England’s
Scotland’s share of the investment is estimated at £44.5m. England get the lion’s share at £95 million, Wales will receive £51 million and Ireland £48 million, all to be paid over the next five years and contingent on “future financial performance conditions”.
Scotland’s share amounts to just short of a year’s turnover for the SRU, and the first instalment of £7.4 million was made on completion of the deal.
“Today’s announcement marks an important step in the evolution of the Six Nations as a tournament and one that Scottish Rugby was proud to play a role in,” said an SRU spokesman.
“Bringing in a significant external partner is the result of many years of hard work in developing the tournament and recognition of its value and future. It provides a great opportunity to take the tournament forward and build on its success to date.
“Scottish Rugby’s Board and Council will take their time to determine how best to utilise this future income, having both backed the proposal to bring CVC on board.”
‘Increased commercial focus’
What CVC seek to get out of their investment is still not clear, although the statement from Murrayfield said the Six Nations “would benefit from an increased commercial focus on the competition as a result of the partnership.”
This is thought to centre on name sponsorship rights – Guinness are current title sponsors – and on TV rights deals, which many suppose will threaten the presence of the championship on free-to-air channels.
Nations will retain responsibility for sporting and majority of commercial decisions
The partner nations “will retain sole responsibility for all sporting matters as well as majority control of commercial decisions,” according to a statement from the Six Nations Rugby administration.
“CVC will bring to the partnership its significant experience in sports, as well as its global network, working alongside the unions and the Six Nations Rugby management team, to deliver on ambitious growth plans for the Six Nations Championships and Autumn International series,” they added.
“This capital investment, combined with the expected growth of the tournaments, will help the unions to support the development of rugby at all levels in their respective territories over the years ahead.”
The timing of the investment is crucial given the losses in revenue the Six Nations has suffered due to the lockdown. There have been no fans at last year’s Autumn Tests and all of the current championship this spring.