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I can still not seem to post links, however Ian or someone may be able to.
Interestingly, there was an column earlier this evening in The Australian from Lisa Alexander saying the only way forward would be a private buy out of the SSN from Netball Australia.
“Netball Australia called an emergency meeting late on Friday after a Tier 1 global private equity group that manages $125 billion worth of funds put forward a $6.5 million bid to buyout the sport’s debt and takeover the Super Netball competition”
More interestingly, Liz Ellis is on the group behind the bid.
- This topic was modified 10 months, 3 weeks ago by schmeetle.
It’s mostly behind a paywall…
Netball Australia called an emergency meeting late on Friday after a multi-million dollar bid to buyout the sport’s debt and takeover the #SuperNetball competition.
DETAILS 👉 https://t.co/02coQrHroP@CodeNetball #Netball #nettytwitter #SSN2022 pic.twitter.com/12VQtC7gy8
— CodeSports (@codesportsau) July 8, 2022
“Prior to lodging the bid with NA Berriman consulted with the Players’ Association board, receiving unanimous support.”
“Netball Australia CEO Kelly Ryan confirmed she had received a formal approach from Berriman at 5pm on Friday in regards to private equity and it was one of a number of proposals NA was considering.”
Thanks Ian.
Courier Mail also seem to have something (also behind paywall)
Explainer
Who is trying to buy Super Netball?
A private equity group, on behalf of a Tier 1 Global Private Equity-focused sporting funder that manages $125bn USD worth of funds, has offered to enter an exclusive 30-day due diligence process with NA to work towards taking over the Suncorp Super Netball league. They plan to make SSN the world’s best women’s sports league and a force in Australian Sport.Who are some of the people behind the bid?
– Matt Berriman: Co-Chairman, Chair of Mental Health Australia, Board of tech company Travlr
– James Rushton: Co-Chairman, Co-Founder DAZN Group
– Liz Ellis AO: Director, Former Australia Diamonds captain
– Michelle Guthrie: Director, Former ABC managing director, chair of tech company TravlrWhat is the offer?
Buy the Super Netball league from Netball Australia, providing them financial security and participation in the future of the game. They want to offer $4.5m up front payment to Netball Australia plus an annual $1m payment for the next two years.Here is that Lisa Alexander article (again mostly behind a paywall)
“A rude awakening means netball is now grappling with the fact it is the Xerox photocopier of Australian sport. Out of date. Out of time. And running out of money.”
As a NZer I do feel a tiny bit sorry, to see what is happening. Netball needs to stop trumpeting the SSN as the greatest netball show on earth. It’s embarrassing give it a rest.
Okay so what are the actual implications of this if it happens. What is NA’s role moving forward? What are the negatives to this buyout?
I guess it means the private equity firm can do what ever it wants. Liz Ellis is part of the bid now but if (or when) she resigns from the role, they could do what ever they want. More imports, a shot timer like in basketball, stopping the time when ever the ball is out of play, increasing ticket prices, may be even a 3 point shot like fast5.
NA would have a say in these decisions but it would be sad if NA lost control of its own domestic league. But ideologies aside, if they go bust, then it would be a big step back for the professionalism in netball. The players would have to work a second job and train when they can.
Late yesterday, @NetballAust reportedly received an offer from a private equity bid to take over the sport, and relieve current debts. What does it all mean?
Story via @dcoppelhttps://t.co/Zrh8EoNyvL— Edge of the Crowd (@edgeofthecrowd) July 9, 2022
excellent article.
The debt is $11m and the offer is $6.5m.
Did the debt go up in the last week 😂 or am I just misremembering the figures?
PE firms do not traditionally buy companies to hold them. They buy well, restructure to profitability and sell. Unless NA include a buy back clause (which would be difficult as they’ll effectively be buying back at a much higher price if the PE firm’s business plan is effected) then who knows who will own the competition in the future. That’s a major concern.
I’m not convinced this is the answer and would suggest there is a lot to work through.
The Edge of the Crowd article was a good one. Can’t read the other articles as behind a pay wall. I don’t pretend to be across all of the financials but gather the 2 main financial impacts are the creation of SSN itself (and the initial sale of broadcast rights) and the impacts of Covid – huge cost to keep the competition alive and loss of revenue from fixtures. I suspect there are are ther operational and fixed costs at play too that need investigating.
$6.5 million seems too cheap – fixture revenue should ‘go back to pre Covid levels’ next year. Although I acknowledge that this is still a risk factor and one cannot predict the future. I am not against the concept (although I have some reservations), there needs to be careful valuation of what is actually being sold. Of course, the current predicament makes a SSN sell off a very attractive proposition for NA and its survival.
One point I do want to make is that with a private consortium, the underlying motive is profit and growth of ‘the asset’. If players think they are not being consulted now I find it hard to believe that this will improve under such an arrangement. As stated in earlier posts, this will potentially mean further changes to the game if they are viewed as necessary to increase TV viewer and game attendance growth (fundamentally what SSN profit is all about).
NA long term viability is of course bigger than just SSN – it is all netball across the country and also our national team. Although I understand that there are other issues at play (each state has its own association and then there are all the local playing associations etc), I find it incredulous that the overall market appears to have not been targetted – all those who play (kids, mixed comps, social comps etc) and the carers who take their kids to games and training.
Having said all that, I guess we need to be open to change and new ideas as the current situation appears to be financially untenable.
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