Pro 14 - General Thread

[Hornet]

Reports coming out that CVC have purchased 27% of Pro14 and will take over the commercialisation of the league from Celtic Rugby DAC.

The value given in the BBC report is conflicting. One figure states £120 million, while another says that Ireland, Wales, Scotland in line for £35 million each with the Italian and South African teams in line for something too. £120 million would be £80 million less than CVC paid for an equivalent share in the Premiership last December.

https://www.bbc.com/sport/rugby-union/50453217

[Twist]

I wonder what, if any, strings came with that

[ribs]

There's that 27% again - any idea why? All I could find was that Special Resolutions of a company need 75% of the shareholders - so some power being held by them. Anything else?

[Logorrhea]

So are we like ............. totally loaded now?

[dropkick]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.


I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

[Dave Cahill]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.


I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

No it isn't. It isn't an injection at all. It's simply an upfront payment of cash that would be coming to us anyway.

[Peg Leg]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.


I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

Prizebonds

[ronk]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.


I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

No it isn't. It isn't an injection at all. It's simply an upfront payment of cash that would be coming to us anyway.

So it's a loan with a bad interest rate.

Thomond or Musgrave?

[dropkick]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.


I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

No it isn't. It isn't an injection at all. It's simply an upfront payment of cash that would be coming to us anyway.

Depends. CVC might make more money for the tournament's.

[Dave Cahill]

They might. But as things stand, next year our commercial revenue is down 27%. For us to even see a 1% increase in that revenue, the total revenue has to increase 28%. Thats a sizeable increase.

[johng]

I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

Have you seen the price of houses in havelock square?

I can't remember how many you would need to significantly expand LR but it would be minimum in the teens of millions before you even spend cash on a feasibility study

Plus you would get architects "horrified" that more of old Dublin was getting destroyed

[The Doc]

They might. But as things stand, next year our commercial revenue is down 27%. For us to even see a 1% increase in that revenue, the total revenue has to increase 28%. Thats a sizeable increase.

Assuming the structure of the deal is as you describe, this isn't really accurate. We have 27% of anticipated next years revenue up-front from CVC. So if revenues remain static, it's a wash - except that the clubs received 27% up front and 73% in the following years. And they should account for it that way - spread as income over the lifetime of the deal as opposed to a one-off windfall in year 1 and 27% reduction in revenue in the following years (though seeing some of the commentary on-line I'm not sure people understand that).

So if overall revenue increases by 1%, CVC will get 27% and the clubs get 73%. So for the clubs to see a 1% increase in revenue, there needs to be a 1.36% increase in overall revenue (1.36 * 0.73) = 1

Of course - if some clubs went and splashed the initial payment on Teddy's ice cream in the first year, then they are going to feel a lot of pain in the following years

[Logorrhea]

So we either blow it on chicks and booze or invest in property?

[The Doc]

So we either blow it on chicks and booze or invest in property?

Or trickle the revenue over the period of the deal.

But have a look at Welsh twitter in particular - your joke isn't far off.

[Oldschool]

So we either blow it on chicks and booze or invest in property?

What kind of rent would be forthcoming for a property on Havelock Sq?

[paddyor]

https://www.scotlandrugbynews.com/2019/11/can-scottish-rugby-afford-a-new-pro-team/

[blockhead]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.
I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

Dropkick, do you not remember the saga that was the rebuilding of the Aviva. The locals wanted the stadium gone, or at least at reduced capacity. The soccer games had a 33k capacity in the old LR (thanks to Liverpool FC fans (Heysel)) and I think they wanted to keep that for both codes. Hence we have a 3/4 stadium. €85m wouldn't get the irfu through the planning process.

[Oldschool]

So are we like ............. totally loaded now?

If the rumours are true the irfu could be getting about €85m from both CVC deals (pro14 and 6 nations). Its a big injection of cash but raises the question of what should be done with it.
I suppose the aviva could be expanded. That would be a good investment and more than cover rising costs for a long time to come.

Dropkick, do you not remember the saga that was the rebuilding of the Aviva. The locals wanted the stadium gone, or at least at reduced capacity. The soccer games had a 33k capacity in the old LR (thanks to Liverpool FC fans (Heysel)) and I think they wanted to keep that for both codes. Hence we have a 3/4 stadium. €85m wouldn't get the irfu through the planning process.

If it was deemed necessary infrastructure it would go true the fast track process presumably. Big if mind you.
They should hire Brendan Mullins as their legal advisor.
The IRFU should have (maybe they are) be buying up those properties any time they come on the market.
Take the long view.

[Ruckedtobits]

What about €1.75m for each of the next four Seasons for each Province?

[Oldschool]

What about €1.75m for each of the next four Seasons for each Province?

With suitable KPIs attached.