Auckland Blues attract private investment with new deal
ByReuters
Updated 17/05/2013 at 07:17 GMT
The Auckland Blues became the third New Zealand Super Rugby franchise to attract private investors on Friday as the New Zealand Rugby Union (NZRU) continued to seek greater commercial return from their professional teams.
Auckland Blues player Chris Noakes (R) looks to break the Western Stormers defence during their Super 15 rugby match at North Harbour Stadium in Auckland (AFP)
Image credit: Eurosport
The Blues will now be operated under a licensing agreement where the provincial unions Northland, Auckland and North Harbour would take a 60 percent stake with the other 40 percent sold to a private investment group.
The licenses to run the Wellington Hurricanes and Canterbury Crusaders were granted to consortia involving local unions and private investors late last year.
The Super Rugby champion Waikato Chiefs were still going through the process of seeking private investment, NZRU chief executive Steve Tew said.
"This new arrangement is... a step forward in terms of building a stronger foundation for... Super Rugby in Auckland," Tew said in a statement.
"With fresh thinking and new capital we believe the Blues will be better equipped to face the challenges ahead."
The licensing agreements with the new owners extends to management of the team and control over marketing. They generate revenue from gate receipts, the sale of naming rights and from "non-rugby" activities.
The NZRU, however, retain ownership of the teams and responsibility for centrally contracting playing and coaching staff, which allows them to continue to prioritise the production of players for the All Blacks.
The NZRU had called for expressions of interest in licences to manage four of the five franchises - the Blues, Chiefs, Hurricanes and Crusaders - last year.
The Otago Highlanders, the other New Zealand side in the southern hemisphere competition, were not included as they were seeking other management opportunities.
The Blues license has been granted for seven years and takes effect from Sept. 1.
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