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| Sold?! The NZ national rugby squad may be on the auction block. |
Imagine Brazil's national football team the Seleção privatized. Or Germany's Masschaft and Italy's Azzurri for that matter. The uproar would be deafening since these storied squads are parts of their national identities instead of being mere corporate identities. There is a saying that everyone has their price, though, and something akin to that may be happening in the Southern hemisphere. Whereas Brazil [5x], Germany and Italy [4x each] represent the winningest nations in Football World Cup history, international sports aficionados should be well aware that the Rugby World Cup's winningest teams are South Africa's reigning champions the Springboks and New Zealand's All-Blacks at 3x apiece. The NZ squad is called such because they dress all in black, whereas their footballing compatriots are the All-Whites for obvious sartorial reasons.
No matter: Just as the pandemic has laid waste to the financial well-being of one of the world's previously well-off petrostates in Kuwait, it is now besieging one of the most storied names in international sports--the NZ All-Blacks. Keeping some of the world's top rugby talent on one squad, training them and keeping them in peak condition is not exactly cheap. Apparently, the operating costs are such that the Kiwis are thinking of a private equity buyout of the national rugby team:
The All Blacks rugby team is in talks with private equity investors as it struggles with the financial impact of the Covid-19 pandemic. New Zealand's national treasure has seen its cash reserves slashed by almost half due to lockdowns. New Zealand Rugby (NZR) said it is now looking at alternative sources of funding, such as private equity.
The move raises the prospect that the famed All Blacks name could be sold to the highest bidder. On Thursday, New Zealand Rugby chief executive Mark Robinson told the New Zealand Herald that it had burned through 47% of its NZ$86m ($56m; £44m) cash reserves during the pandemic.
A counterargument is raised though that the New Zealand squad is, if anything, under-commercialized and would benefit from being bought out by private equity to unleash the name's unrealized commercial potential:
The team has the most valuable brand in world rugby, according to British consultancy Brand Finance, which values it at £144m (NZ$278m). "The All Blacks have not been slow to embrace commercial opportunities," said Tom King at sportbusiness.com. "Their deal with kit suppliers was hailed as ground-breaking as was the 2012 shirt sponsorship with AIG which ends next year.
COVID-19 has made profaned so many things previously thought sacrosanct, such as freedom of movement and what else have you. "NZ All-Blacks plc" may just be the next big thing to emerge. It makes you angry enough to do the Maori war dance Haka, but that too would be sold to the highest bidder in the purchase price.
