Nearly a third of Champ Rugby clubs are currently engaged in discussions with potential new investors, as the sport seeks to leverage the forthcoming franchising of Prem Rugby. While the exact details remain under wraps, England's top-flight league is poised to transition into an expansionist model reminiscent of those in North America.
Recent Investments in Premiership Clubs
This season has seen notable investments in Premiership clubs from entities like Red Bull and Sir James Dyson. Additionally, Black Knight, the owners of AFC Bournemouth, are set to acquire Exeter Chiefs. This wave of investor interest is now trickling down to the Championship, the second tier, where future Premiership aspirants must spend at least a season before being considered for promotion.
Championship League's Appeal
Simon Gillham, chair of the Championship and president of French second-tier club Brive, shared insights with City AM regarding the league's appeal to overseas investors. He recounted assisting a Championship club in presenting to American investors, highlighting 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," Gillham stated.
Benefits of Franchising Model
The shift towards franchising could simplify the process of attracting investment, according to Bedford Blues' chief executive, who spoke to City AM last month. Bedford, for instance, is set to host a Universal Studios theme park, which might enhance the region's appeal to American investors. The Championship now boasts a broadcast deal and a title sponsor, and Gillham is confident that additional backers can be secured.
Play-offs and Club Revival
The season includes play-offs at both ends of the league table, with expressions of interest required for clubs seeking entry into the Championship. This applies to fallen clubs like London Irish and Wasps, should their owners attempt to revive them. Gillham emphasized that investors seek growth potential, not internal conflicts. "No one wants to invest in a civil war. 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," he added.
Lower Entry Costs Attract Investors
One key factor drawing American companies and sovereign funds to rugby is the relatively low entry cost compared to football. "If you compare it to football, the potential for growth, for investing in growth, is a lot, lot cheaper," Gillham noted, underscoring the financial appeal of investing in the Championship.
