Bob Dwyer in bid for private takeover of NSW Waratahs
May 2, 2014 - 12:00PM
Georgina Robinson
Chief Rugby Reporter
World Cup-winning former Wallabies coach Bob Dwyer is behind a private equity bid to take over the Waratahs.
A day after Waratahs Rugby announced its first loss in three years, Dwyer confirmed he and a small group of Sydney-based associates were in talks with the Australian Rugby Union and the NSW Rugby Union to take over the licence to run the Super Rugby club sometime in the next 18 months.
"The Waratahs were structured that way so that this exact thing could be done if people came forward," Dwyer said.
"For some time myself and a few others have been talking about doing something. From our point of view the most important part of our drive is to support community rugby and, off the back of that, strengthen the professional game."
Waratahs chief executive Jason Allen confirmed the organisation had been approached by a number of different groups interested in taking over the franchise licence, which expires at the end of next year.
"All interest at this stage is quite preliminary," Allen said.
"We've had a number of interested parties knock on our door - more than six since I have been in the job - to discuss the possibility of privatisation, some with greater conviction and depth than others.
"Recently though ... we have had a number of new partners come to us with potential offers of private equity involvement. It is a real compliment to the business that with an attacking style of rugby, the influence of [head coach] Michael Cheika and consistency in our commercial model, this is happening."
It is understood that Dwyer's group face stiff competition from at least one other potential suitor. A report on espnscrum.com said a second party, possibly with ties to English Premier Rugby side London Irish, could be behind the second bid.
Allen would not confirm or deny the report.
The Waratahs operate under a complex licencing agreement with the ARU and NSW Rugby. Obligated under the SANZAR agreement to supply five Super Rugby teams, the ARU invested NSW with a licence to run the Waratahs.
In 2009, with a potential private equity involvement in mind, NSW Rugby separated the professional arm of the game from the community side, 'selling' the licence to Waratahs Rugby on a five-year agreement worth $1-$1.75 million per annum.
That expires at the end of next year but Allen said agreement on the new deal could be reached before that deadline.
"We are not being forced into this, we haven't been in the market hunting for investors, we have been really impressed that people are considering this option," he said.
The interest from private investors will raise eyebrows less than a year after the ARU conceded defeat on private ownership of the Melbourne Rebels.
The Rebels' chief backer Harold Mitchell handed in his shares to the Victorian Rugby Union in June last year after three financially challenging seasons.
Allen said the Waratahs were mindful of the history of private ownership in Australian rugby but were also looking at other sporting codes and rugby models overseas.
"When Waratahs Rugby was created there was consideration for private equity now or down the track very much in mind," he said.
"We should learn from all experiences, we are definitely 'eyes wide open' on this and looking to learn from different scenarios," he said.
It is understood Dwyer's group are structuring their plans around building a strong NSW brand in the club, junior and country sides of the game in NSW.
Dwyer, a former NSW coach who led the Wallabies to victory in the 1991 World Cup, is a part-owner of Narbonne rugby club in France's second division Pro D2 league.
The club has staged a remarkable turnaround to be ranked fourth in the competition on points differential and, though no longer hopeful of promotion to the Top 14 this year, are in the play-offs and one try away from breaking a club record.
Dwyer said he was proud of the side's heavy French flavour in a competition dominated by foreign players and hoped to bring the same grassroots focus to the Waratahs and NSW Rugby.
"There is a perception that there is a disconnect in Australia between the elite teams - the Super Rugby sides and Wallabies - and all the teams below them," he said.
"We want to to make sure that is removed in NSW."
After paying $1.1 million to NSW Rugby as part of the licencing agreement, the Waratahs announced a loss of $96,325 for 2013 on revenue of $18,430,783, down from revenue of $19,059,871 in 2012.
It was the club's first loss in three years, down from a 2012 profit of $64,745, which was the best result in the six years before that.
"Despite a somewhat disappointing 2013 Super Rugby season when the Waratahs finished just out of the top six, the club is in a good state," chairman Roger Davis said.
"We are very proud of the fact that we are able to contribute more than $1 million into grassroots rugby across NSW."
Read more: http://www.smh.com.au/rugby-union/un...#ixzz30WKZwaCq
