The Wellington-based Hurricanes Super rugby franchise is the first to settle with a new owner 10 months after the New Zealand Rugby Union put out the call for potential bidders.
The new entity, Hurricanes Investments LP, will be half-owned by the Wellington Rugby Football Union, a quarter held by former Brierley Investments boss Paul Collins, and the remainder divvied up between Wellington Phoenix operators Welnix and interests associated with Liz Dawson and Colin Oldfield, the NZRU says in a statement.
The franchise runs for three years, with a five-year right of renewal. No value was given.
The Canterbury-based Crusaders have agreed in principle on a licence arrangement, while the Auckland-based Blues have been given more time, with international and regional bids made. The Waikato-based Chiefs failed to put forward a final bid.
"This move gives the game at the professional level a better chance to be run profitably, to build on its appeal to fans and to enhance its ability to feed a winning All Blacks team," NZRU chief executive Steve Tew said.
"This was always a step into the unknown so to have secured two new operators is a good result."
The national sports administrator has been looking at ways to make the game more profitable as provincial unions face the squeeze from dwindling attendance and, in some cases, poorly managed finances.
The NZRU embarked on a programme of selling the franchises after financial reviews found extra investment was needed to ensure the sustainability of the Super level of rugby.
Franchise holders will be responsible for the management of the team, marketing and promotion of matches, and will keep gate takings and some sponsorship income.
The NZRU will retain ownership of the brands associated with each team and continue to pay for player and coach contracts and international travel through the SANZAR body.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- NZ dollar gains as Fed rate hike timing weighed, poll shows Brexit has chance
- Carry on: Kidman stars in Etihad VR, Singapore's A350s and more
- Warminger wants FMA's 'catch-all pleading' refined
- Silver Fern shareholders to vote again on Shanghai Maling deal in July
- The Budget in 60 seconds: 10 key points
Most listened to
- Business Week in Review with Grant Walker & Andrew Patterson
- Matthew Hooton on Labour party’s reaction to the budget 2016
- Rodney Hide says the attack by University of Auckland over overfishing is nonsense
- Do social bonds make sense? Tim Hunter tells Andrew Patterson it’s not just about the warm fuzzies
- Cameron Officer talks about the car of the week - Volkswagen California Ocean