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#Post#: 12891--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: deadlyfrom5yardsout
Date: December 21, 2018, 4:08 am
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eh? They will take 35% of it only I believe?
#Post#: 12892--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: Blucherquin
Date: December 21, 2018, 4:16 am
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--- Quote from: deadlyfrom5yardsout link ---
>
> eh? They will take 35% of it only I believe?
>
--- End Quote ---
Well yes, I'm only really going on what i've read about the
analysis of how they work -- build up market value then strip
cash and run.
#Post#: 12894--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: Camquin
Date: December 21, 2018, 4:23 am
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CVC only lose if the revenue falls otherwise the will make their
money back - they would lose baddly if PRL lost the rights to
promote top level rugby.
The cubs only gain if CVC manage to increase PRL's profits more
than 30% - if it turns out their are not loads of markets
wanting to buy rugby highlights packages then the clubs lose in
the long run.
#Post#: 12895--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: deadlyfrom5yardsout
Date: December 21, 2018, 4:26 am
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CVC were prepared £500M for the lot so they must see value
there.
#Post#: 12896--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: AllyMac
Date: December 21, 2018, 4:31 am
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--- Quote from: deadlyfrom5yardsout link ---
>
> eh? They will take 35% of it only I believe?
>
--- End Quote ---
They've purchased 37%, so they will expect to receive 37% of the
revenue. CVC will not be involved in the day to day running of
the league, but instead will bring their "expertise" to the
commercial side of things, including sponsorship and TV revenue.
However, and this is where the problem lies, the majority of
Premier Rugby's income is generated from TV and sponsorship, and
therefore in order just to stand still, CVC will have to
increase TV and sponsorship revenue by approximately 150% per
annum. Given that sponsorship and TV deals are normally for a
set period of time, unless the timing of this has been done to
coincide with the renewal of these contracts, the clubs are
going to be a lot worse off in the initial years. Therefore, the
idea that the money is going to be spent on infrastructure will
not come to fruition, as the money will need to be spent on the
day to day running costs of the clubs, or for paying down debt.
#Post#: 12897--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: deadlyfrom5yardsout
Date: December 21, 2018, 4:45 am
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I wonder if they will initially concentrate on foreign
broadcasting rights etc to get the ball rolling?
#Post#: 12899--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: Fearless Fred
Date: December 21, 2018, 5:36 am
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Well, the UK broadcast rights are with BT until 2021 in the
current deal, so any renegotiation out of that deal would no
doubt be costly, and Gallagher have only just joined as primary
sponsor this season, so CVC will have to concentrate on
secondary sponsors as broadcast rights outside the UK for now...
#Post#: 13033--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: Quaking Quin
Date: December 23, 2018, 12:57 pm
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--- Quote from: Blucherquin link ---
>
> It's a one-off payment. So won't make a difference - other
than the teams now all need to start to work out where and how
to make up what will be diminishing TV revenue year after year.
>
--- End Quote ---
- So it's a one-off payment that any promoted team outside the
13 will not benefit from over the coming years.
- So any promoted team will still have to buy shares in PRL from
their own finances.
- So any promoted team will still have to fund their own ground
improvements and top flight players without any assistance from
the CVC deal.
- So any promoted team in coming years will still have to give
up 35% of premiership and European revenues due to PRL and
shared equally between premiership clubs each year.
Starving any club outside the privileged 13 of finances is
clearly ring-fencing by the back door.
Furthermore, the assumption that CVC can increase revenue is
also not at all certain. The RFU has had to eat very humble pie
recently when renegotiating sponsorship deals.
#Post#: 13084--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: deadlyfrom5yardsout
Date: December 25, 2018, 6:19 am
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That makes sense until you come back to the fact that CVC have
put up £200M. They are not known for their charitable giving or
their penchant for taking a large punt in the dark.
#Post#: 13098--------------------------------------------------
Re: CVC deal for 35% of Prem
DIR By: Blucherquin
Date: December 26, 2018, 1:42 pm
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--- Quote from: deadlyfrom5yardsout link ---
>
> That makes sense until you come back to the fact that CVC have
put up £200M. They are not known for their charitable giving or
their penchant for taking a large punt in the dark.
>
--- End Quote ---
They will certainly make tv deals in new markets and market the
crap out of the game where rugby isn’t currently selling stuff.
This being for the benefit of any of the teams or the game in
the medium to long term is the big question.
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