Premiership Rugby takeover could see club vs country row explode as the sport faces huge shake-up

CVC Capital Partners, the ex-owners of Formula One, had made a £275m takeover approach to seize control of Premiership Rugby that could change the face of the game

CVC Capital Partners has mounted a £275m takeover approach for Premiership Rugby (Getty)

The hugely controversial proposed takeover of Premiership Rugby by the former owners of Formula One will not only destabilise the state of the sport in England, but could delve the club-vs-country row to depths never before seen.

CVC Capital Partners are looking to complete a £275m takeover of English rugby’s professional league Premiership Rugby Limited, with the 13 stakeholders made up of the 12 Premiership clubs and Championship side London Irish set to vote on the offer at a meeting next Tuesday.

A report by The Times on Tuesday revealed that the ex-F1 owners – who sold up to Liberty Media in 2017 for $8bn [£6.4m] – are looking at purchasing Premiership Rugby with a few to exploring new ways of monetising the sport, with the ultimate aim to make as much profit from an future sale as possible.

At present, all 13 clubs bar Exeter Chiefs make an operating loss year-on-year, and the cash injection would help write off most of, if not all of their cumulative £30m-plus debt with each club poised to receive an overnight payment of £17m upon completion of the takeover.

But despite CVC holding close tied with Sky, having agreed in 2012 in a landmark broadcasting deal the rights to show F1 coverage that remains in place today following a renewal of the agreement two years ago that runs until 2024, the broadcaster are unlikely to be talked into coming back to the table to rival BT Sport, the current broadcasters, unless an offer proves too good to turn down.

Sky has moved away from club rugby of late, with BT exclusively broadcasting the Premiership and the two elite European competitions, while Premier Sports picked up the Pro14 from Sky this summer with plans to show every single match this season. That leaves Sky with just the second-tier Championship in the British club game, though they remain a prominent figure on the international stage with coverage of England’s summer and autumn internationals, the Rugby Championship and Southern Hemisphere club competitions such as Super Rugby, the Mitre Cup and Currie Cup.

Unsurprisingly, Premiership Rugby has welcomed the news of potential investment given that potential new avenues of financial support have dried up. Gallacher, the American global insurance broker, risk management services and consulting firm, have picked up sponsorship of the Premiership this season after Aviva departed in the summer, but other interested parties remain few and far between.

Premiership Rugby Chief Executive Mark McCafferty will chair a meeting on Tuesday regarding the takeover (PA)

“Premiership Rugby and its clubs have grown quickly in the last five years with the help of major partnerships,” a Premiership Rugby statement read.

“In that time we have extended our reach in America and become the first club rugby tournament to broadcast live matches in China.

“The board is always considering options for further expansion and the best ways to support that. Inevitably, this will attract interest, but a decision is not imminent. This interest is very good news for Premiership Rugby and is a reflection of its growing appeal.”

While all 13 stakeholders will meet on Tuesday, a decision is not expected to be immediate, and it’s understood that Bath are opposed to the plans, with their owner Bruce Craig the most influential of the current club owners.

The Rugby Football Union will also be keeping a close eye on proceedings, but they have no say over the takeover approach and cannot block it if it comes to fruition. The RFU do have the power to veto any new club owners, but they are unable to prevent stand on the way of CVC should it disagree with the proposal.

Eddie Jones refused to comment on the matter when asked on Wednesday, with the England head coach saying: "It has no bearing on what I do, so the only thing I do is read it with interest and that's about it."

With CVC very much looking at the profitability of the Premiership, the current club-vs-country row could quickly spiral out of control. As present, clubs are unhappy with the treatment of players when they join up with Jones’ squad after a spate of injuries since his arrival, but that is relatively low-key compared to what could be on the horizon. CVC would likely demand an increase in financial compensation from the RFU for the release of players when the negotiations begin on the next deal between the two parties, while British and Irish Lions tours and international training camps could also be at risk.