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ew Zealand Rugby (NZR) have officially received a $465 million offer from US private equity firm, Silver Lake, for a 15% minority stake of commercial rights valued at $3.1 billion.

Should the deal go through, it would become the largest transaction of this nature in New Zealand (NZ) sports history.

According to NZ Herald, NZR officials have begun pitching to the provincial unions, the NZ Rugby Players’ Association, former All Blacks players, coaches and Black Ferns, outlining the offer and how the funds would be distributed, with the three-hour roadshow pitches starting in Dunedin.

It is understood Silver Lake would pay the investment in three portions over three years to ensure it is carefully managed.

NZR still faces significant losses in the wake of the COVID-19 pandemic, but compared to the rest of the world, they are considered to be in a relatively stable financial position.

This is a far cry from May 2020, where a NZR spokesperson told NZ Herald: “We’ve got to get revenue streams and we can’t afford to fund those ourselves.”

“Certainly at the Super Rugby level, our financial model there is under huge pressure, both the competition and our teams,” the spokesperson said.

In going to market NZR engaged with several private equity firms, including CVC Capital Partners, and Bruin Sports Capital, but have reportedly gone with the Californian-based company who have a history of long-term investments including the UFC and City Football Group, the holding company of Premier League club, Manchester City.

NZR plans to set up a new subsidiary company, named CommercialCo, which will be responsible for maximising commercial rights, including broadcast, sponsorship, and even growing future revenue streams, including Esports.