Carlyle around the goal for Rugby Australia debt as PE scrum collapses
It appears Rugby Australia’s funding efforts have progressed well into the second half.
Street Talk understands US buyout firm The Carlyle Group is one of seven parties vying to give the governing body a much-needed cash injection after negotiations with private equity funds fell through.
Sources said the first phase of debt negotiations kicked off before the Rugby World Cup in France and phase two was now starting. On the table is an option to fund Rugby Australia until 2025 with $60 million in debt. The body will also look to draw on its existing $20 million debt facility and pray the British & Irish Lions Tour in 2025 brings in enough revenue.
Australia’s humiliating defeat at the hands of Wales in Lyon effectively dumped the Wallabies out of the World Cup and sparked a wave of recriminations. AP
Distressed debt giants Bain Capital Credit and Oaktree Capital passed on the deal, Street Talk understands. We don’t blame them. Rugby Australia is facing a massive uphill battle to turn its fading fortunes around. Private equity backing away from the deal isn’t a great signal either, nor the Wallabies’ disastrous performance in France and questions surrounding the future of coach Eddie Jones.
A spokesperson from The Carlyle Group declined to comment when contacted by Street Talk. Carlyle is no stranger to sports investing, however, providing $660 million (€400 million) in debt financing to Swiss sports marketing company Infront Group in 2021. The firm is also seeking a media rights deal with Italy’s Serie A and has emerged as a potential bidder for Manchester United, according to reports.
As the column has reported, Rugby Australia and its adviser Jefferies have been in advanced talks to raise up to $250 million in equity
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