CVC Capital Partners acquire minority stake from Premiership Rugby

Private equity firm CVC Capital Partners has acquired a minority stake in Premiership Rugby after agreeing to invest over £200m.

It is understood that the equity firm has obtained 27% of the shares in the Premiership board after they were declined 51% of stake earlier by the member clubs in September.

The deal follows after 23 years since the rugby union turned professional and the first investment from the CVC, who previously held investments in F1 and Moto GP is expected to flow in the first quarter of 2019.

"We're happy that CVC's track record speaks for itself," Premiership Rugby chief executive Mark McCafferty said.

"They were in MotoGP for eight years and only came out of that because of the requirements for moving into Formula One. They were in Formula One for the best part of 10 years.

"They are expecting to be in this for the long term and they understand what's required to invest and build".

McCafferty also added that the investment can help the clubs improve their facilities and expand the stadium further to attract more interest from the fans.

"I expect Premiership Rugby in seven or eight years' time to be an even more globally followed business. That expansion needs support.

"The clubs see this as a way to accelerate growth and bring new fans into the game and opening up audiences.

"We will be able to invest at a greater level and build the competition out further.

"There's stadium development at Bath, Saracens and Harlequins already on the board and this will help with those.

"We have a salary cap in place and that's not moving for the next couple of years. We are investing in operations and infrastructure, that's the key."