Four Champ Rugby clubs in talks with new investors
Nearly a third of Champ Rugby clubs are having conversations with potential new investors, as the wider game looks to capitalise on the incoming franchising of Prem Rugby.
Although details are still to be finalised, the English top flight is set to steamroll into an expansionist league much like those seen in North America.
Red Bull and Sir James Dyson have already made significant investments in Prem clubs this season, while AFC Bournemouth’s owners, Black Knight, are set to take over Exeter Chiefs.
Investor interest is now seeping into the second tier, where any future Prem hopefuls will need to spend at least a season before being accepted into the top flight.
The Champ’s chair, Simon Gillham, who is also president of second tier French team Brive, told CityAM that there is wide-ranging interest in the league from overseas investors.
“[Last week] I helped a Champ club presentation to some American investors,” Gillham said. “And that was fascinating because you’re going to invest in something where there’s a potential for growth. I’m not going to quote any English clubs, but would you rather invest in a club which is smaller and has the potential for growth.
“No one’s going to announce some big deal for a Champ club next week, as far as I know – and I think I would know – but I know that there’s a lot of interest bubbling around immediately. Off the top of my head, there are three or four clubs in the Champ who have had conversations with potential new investors.”
Champ investment
Bedford Blues’ chief executive told CityAM last month that the shift towards franchising could make it easier to attract investment. Bedford, for example, will soon be home to a Universal Studios theme park in a move that could see Americans look favourably on the region.
The Champ now has a broadcast deal in pace and a title sponsor, with Gillham certain the league could find additional backers.
The season also includes play-offs at the top and the bottom of the league, with expressions of interest needed to apply for a place in the Champ – something London Irish and Wasps would need to do should their owners look to revive the fallen clubs.
“No one wants to invest in a civil war,” Gillham added. “People want to invest in potential for growth, and that’s business. So at the moment, the reason that the Prem is starting to attract investors is because they see potential for growth now that will really shed down to the Champ.
“One of the reasons that American companies and perhaps sovereign funds are starting to look at rugby is because the entry ticket is so much cheaper. If you compare it to football, the potential for growth, for investing in growth, is a lot, lot cheaper.”