Premiership Rugby in £275m takeover talks after CVC approach

killerandflash

https://www.bbc.co.uk/sport/rugby-union/45417946

This made me wonder who actually owns the leagues we play in. In the case of rugby, it hardly seems fair that if a stake was sold in the Premiership, the clubs playing in it at that time would be the ones who get the windfall, as it's not a closed league. Teams who've previously played in the Premiership would surely have a right to some of the money as well

And is it right to sell control of a league anyway? It just seems wrong

Addickforlife

killerandflash said:

https://www.bbc.co.uk/sport/rugby-union/45417946

This made me wonder who actually owns the leagues we play in. In the case of rugby, it hardly seems fair that if a stake was sold in the Premiership, the clubs playing in it at that time would be the ones who get the windfall, as it's not a closed league. Teams who've previously played in the Premiership would surely have a right to some of the money as well

And is it right to sell control of a league anyway? It just seems wrong

Not quite true, as Premiership Rugby have 13 stakeholders - the 12 clubs currently in the Premiership, plus London Irish, currently in the Championship. London Irish are involved in all board meetings etc and will get a windfall as well.

IT_Andy

The Times is saying each club will get receive 17 million each. Enough for some clubs to recoupe the massive losses occurred over the last few years.
Worcester Warriors owners will not be allowed to walk away with the money but can recoup their personal debt.
Apparently salary cap is not about to go through the roof again. Worcester should have the money to build a hotel and Sarries can help finance a new stand.
Also Wasps would have sufficient funds to pay off the debt, on the stupid bond created a couple of years ago.
It may affect the relationship with the RFU as both sides want control of the players.

Lincsaddick

Under the proposal, the RFU will almost certainly lose any remaining control or influence over the big clubs rather as MCC lost control over 'big time' cricket.
The big losers will be the amateur clubs who depend on RFU financial support. Also affected will be the international set up which will remain under RFU control, with the players 'owned' by the clubs. Perhaps a 'dual control' arrangement will ensue on a similar pattern to English international cricket.
A BIG downside will almost certainly be a massive influx of foreign players to the detriment of the international side. It's happening already and will only accelerate

killerandflash

I still don't see how an elite league can have separate private ownership, with the "feeder" leagues owned by the governing body

It's completely different to F1, which is much more of an American franchise type operation, with no promotion or relegation.