The Melbourne Storm is set to be one of the first clubs in the NRL to benefit from the record-breaking TV rights deal.
The club could absorb a $160 million investment from international investors looking to purchase the club, with the Courier Mail reporting that three businesses, including a Hong Kong-based hedge-fund firm, are interested in buying a majority stake of the Victorian club.
It is understood that a purchase of up to 80 percent of the ownership of the Storm is on the cards, which could place the club in the top echelon of sporting franchises in Australia.
Storm chairman Matt Tripp confirmed the investors' interest in the club and remains focused on pushing the NRL team financially forward.
“We are in negotiations with a number of parties in acquiring a stake in the Storm,” he said to the Courier Mail.
“There is no world in which we would sell out of the Storm completely.
“We have maintained for some time we have been looking for the right strategic partner to help us drive the club forward.
“There are several parties left we're speaking to. They are all really well credentialed and would all add enormous value. We will either choose to partner with one of them or we will continue on with our current shareholder structure.
“Nothing will change within the club. No one wants to exit from the existing shareholding group.
“A few years ago we took on three new investors and this time we are looking at taking on one more.
“We don't know who that will be and we don't know how big the stake will be.”
Given the Storm have been one of the most successful NRL teams in the past two decades, and in the heartland of AFL territory with room for growth, it's no wonder international bidders have interest in them.
It is understood it could place the Storm worth more than $200 million, along with the new TV rights deal taking place in 2028, which will inflate the value of the NRL competition immensely.
The potential of international investors in the Storm is also proof that the NRL's ambition to globalise the code is making ground.
Tripp assured that a major purchase of the club wouldn't change his position as chairman, and will remain committed to the club.
“One thing I want to make clear is I'm committed to the Storm and my role as chair,” he said.
“With the new TV rights deal, there is a view the NRL clubs should get stronger, so there is a bit for us to think about. But it is great there's interest and it's great they are keen on our game and Australian sport more broadly.
“We're now in a bomb-proof competition compared to others around the world off the back of the brilliant broadcast deal done by Peter (V'landys) and Andrew (Abdo).
“By the end of this week, we hope to have a clearer view on which direction we'll go in.”
The Storm will take the extra step of globalising the NRL when they travel to Las Vegas in Round 1 to attack the American sporting market.
I struggle to understand how any investor (domestic or foreign) would pay $200 million for a club when there are so many aspects of the game (the most obvious being the salary cap) that are identical for every club.
Success is determined primarily by the coaching, medical and recruitment/retention functions. Craig Bellamy has shown he is an excellent coach, but he will gone in 18 months. Fans and investors have no avenues to learn about the set-up of the other two functions.
Slick Marketing & Merchandise will take the investment only so far.