Prem Rugby is preparing to launch a tender process to attract external investment, contingent on formal approval from the Rugby Football Union to operate as a closed, franchise-based league. The top tier of English rugby expects this approval to come next year, after which it will begin seeking funding from the market.
To assess finances and funding options, the league enlisted the Raine Group, a New York-based investment bank, alongside Deloitte to conduct a thorough review this year. The plan is to enter the market in the second quarter of 2026.
Six years ago, Prem Rugby sold 27% of its commercial rights to CVC Capital Partners for about £200 million. Now, in light of several turbulent years that saw Wasps, London Irish, and Worcester Warriors all enter bankruptcy proceedings, the league is looking for additional cash injections. Raine has reportedly attracted interest from multiple American investors exploring opportunities in English sport, a trend that could grow as the 2031 Rugby World Cup approaches in the United States.
The league has not yet decided whether to sell another stake or to borrow, with multiple options anticipated to feature in the tender response.
The CVC deal remains controversial within rugby, largely because much of the windfall was immediately spent on player wages, contributing to financial strain for several clubs.
The sport was hit hard by the Covid-19 pandemic due to a loss of matchday revenue, and effects linger. In 2023-24, the 10 Prem clubs together posted losses of £34 million, with total debt around £340 million.
There are signs of recovery, including a new five-year TV deal with TNT Sports worth £200 million secured at the end of the previous season, a notable rise from the prior arrangement that generated £66 million over two years. TNT also reported a 35% rise in audience figures during the first six rounds of the current season.
CVC appears content with its existing investment and may consider extending it, though talks are still in the early stages. The private equity firm is nearing the final steps of establishing the Global Sports Group to oversee its broader sports holdings, which already include La Liga and the Women’s Tennis Association, with GSG expected to pursue further acquisitions next year.
In a further sign of ongoing interest in rugby, Siya Kolisi, South Africa’s two-time World Cup-winning captain, recently joined GSG's athlete advisory board.
A franchise model with no relegation for at least five years is central to Prem Rugby’s funding strategy, as it offers investors greater certainty and aligns with a North American sports framework. With all 10 shareholder clubs backing the concept, formal approval from the RFU council remains essential, with a decision anticipated in February.
The league also plans to centralize the clubs’ commercial operations, a move expected to yield immediate cost savings and set the stage for longer-term growth. There is consideration of expanding the top division to 12 clubs in the future, but this expansion would occur through a licensing framework rather than automatic promotion from the second-tier Championship.
