Venture Capital in the World of Sport

There’s plenty of stories across the rugby world about the potential for venture capitalists chucking some money at our game.

The English Premiership have sold a minority shareholding (thought to be 27%) to CVC Capital Partners for £200m, whilst the same group are rumoured to have made a £500m offer in the Six Nations.

In competition to this Six Nations offers, World Rugby are desperately trying to get on the bandwagon of “revenue maximisation” with their World League , which they claim could be worth £5bn over 12 years.

Lots of money, but what will the new investors get in return, and how much of this “maximised revenue” will make it’s way down to the grassroots of the game so that the real stakeholders of our sport (our local communities where local rugby clubs make it all happen) can evolve and develop.

For a look at the process of venture capital and what VC investors expectations are from their investment, here’s an interesting book review on the Secrets of Sand Hill Road.