• RA chairman confirms Middle East investment interest
• CVC also has spoken to both unions about a potential deal

Rugby Australia (RA) and the South African Rugby Union (SARU) have been approached by Middle Eastern parties over potential investment deals, according to the Daily Mail.

Qatar’s sovereign wealth fund has reportedly approached RA for a possible investment, while Saudi Arabian investors are said to have expressed interest in investing in SARU.

As well as attracting interest from the Middle East, both national rugby union governing bodies have purportedly held talks with private equity firm CVC Capital Partners, which is keen to expand its sports investment portfolio.

CVC has already acquired stakes in the Six Nations rugby competition, as well as in Premiership Rugby and the United Rugby Championship (URC).

‘I won’t confirm any specific counterparty discussions but we have had interest in the Middle East’, RA chairman Hamish McLennan told the Mail.

SportsPro says…

Although it recently posted its first surplus in four years, RA’s finances appear to be still recovering from the pandemic. It will reportedly finalise a new funding deal in November, with a loan in excess of AUS$40 million (US$25.7 million) expected.

The organisation is in the process of centralising the domestic game, with New South Wales (NSW) Rugby recently agreeing to hand over control of the Waratahs Super Rugby club and its professional rugby business. More funding would expand RA’s capacity to take on control of other state bodies’ rugby teams, while also driving up the sport’s development in Australia.

As for SARU, it is also still feeling the financial impact of Covid-19 and investment would go a long way to stabilising the federation, while also providing new income streams.