Sir James Dyson has made a major investment in Bath Rugby that will make him a 50% owner of the club, according to multiple reports. Dyson joins Bruce Craig as a co-owner of Bath Rugby.
Dyson and Craig will work together on plans for a new stadium in Bath, multiple reports indicate. An 18,000-seater stadium to replace The Recreation Ground was backed 8-1 by Bath and North East Somerset Council last year, and plans to modernize The Recreation Ground were initially submitted in 2018.
This investment occurs as Premiership Rugby has scrapped promotion and relegation to move to a new model where clubs apply to join a 10-team league, according to multiple reports. Dyson's investment follows Red Bull's purchase of Newcastle in Premiership Rugby. Premiership Rugby chief executive Simon Massie-Taylor welcomed Dyson's investment. Dyson's investment is seen as a turning point for Premiership Rugby, unlike the investment in Newcastle which was a sale out of necessity, major media notes.
This is great news for Bath Rugby and their loyal and dedicated fans. This announcement is testament to the stewardship of Bruce Craig and his leadership team at the club and confirms just how attractive Premiership Rugby now is to investors.
Dyson's investment in Bath is likely a debt-for-equity swap, according to major media. Dyson is worth an estimated £20 billion, major media reports. Dyson will help Bath Rugby reduce its debts, according to major media. Dyson plans to eventually hand the club over to his children, according to major media.
In the broader financial context of Premiership Rugby, recent changes to the English rugby structure restricting promotion to clubs with financial means could spark investment in second-tier clubs, Champ Rugby figures told major media. However, Premiership Rugby is not an attractive asset class due to factors like CVC Capital Partners taking an annual sum, a poor TV deal, and mounting interest on COVID-19 loans, major media reports. Losses in Premiership Rugby are relatively low compared to other sports leagues, and financial commitment is light versus leagues like the NFL or Formula 1, according to major media.
Bath Rugby won the Premiership last season as part of a treble of trophies, multiple reports indicate, providing a successful backdrop to this new ownership phase.