Prem Rugby is planning to launch a tender process to secure external investment in the competition after it has received formal approval from the Rugby Football Union to become a closed franchise league, which it expects will happen next year.
The English top division engaged the investment bank Raine Group and the accountancy firm Deloitte to conduct a review of the sport’s finances and potential funding options this year, and is preparing to go to market in the second quarter of 2026.
The Prem sold 27% of its commercial rights to the private equity firm CVC Capital Partners for around £200m six years ago, and will seek a further cash injection after a turbulent few years that resulted in three of its former clubs – Wasps, London Irish and Worcester Warriors – filing for bankruptcy.
The New York-based Raine is understood to have attracted several inquiries from American investors looking to buy into English sport during its review, with interest in rugby expected to grow further before the 2031 World Cup, which will take place in the United States.
The Prem has yet to decide whether to sell another stake or take on borrowing, with several different options expected to feature in the tender.
The CVC deal was seen as controversial within the sport as most of the cash windfall was spent immediately on player wages by the clubs, many of whom subsequently experienced acute financial problems.
The Covid-19 pandemic hit rugby particularly hard due to the loss of matchday revenue and its effects are continuing, with the remaining 10 Prem clubs reporting combined losses of £34m in 2023-24 with their total debt around £340m.
There have been signs of the sport recovering in the past couple of years, however, with the Prem securing a new five-year TV deal with TNT Sports worth £200m at the end of last season, a significant uplift on the previous contract that brought in £66m over two years. TNT has reported a 35% growth in audience numbers from last year across the first six rounds of this season.
CVC is understood to be happy with its investment and may consider extending it, although discussions are at an early stage. The private equity fund is in the final stages of setting up the Global Sports Group to manage its sporting investments, which also include La Liga and the Women’s Tennis Association, with GSG expected to target new acquisitions next year.
In an indication of its continued interest in rugby, Siya Kolisi, South Africa’s double World Cup winning captain, was appointed to GSG’s athlete advisory board last month.
The Prem’s move to become a franchise competition with no relegation for at least five years is crucial to the tender process, as it would bring more certainty for investors and mirrors the American sports model. With its 10 shareholder clubs united behind the concept, the Prem still needs approval from the RFU council, which is expected to provide formal ratification in February.
The Prem is also planning to centralise the clubs’ commercial operations, which would bring immediate cost savings and the potential for longer term growth. There is also a desire to expand the top flight to 12 clubs in future, although this would be done via a licensing system rather than the traditional model of granting automatic promotion from the second-tier Champ.
