Members throw cautious support for ACT Brumbies private equity plan

The arrangement would see between 19 and 49 per cent of the organisation sold off to an external investor in a bid to inject much-needed cash into the club.

Brumbies officials have been working on the plan for months and on Tuesday night presented their vision to members.

It's a group that includes John I Dent Cup clubs, junior rugby organisations and the ACT Referees' Association.

The meeting was held as the Brumbies prepare to go public with a prospectus that will trigger negotiations with interested parties.

With conversations with investors yet to commence, firm details have not been locked in and the presentation involved an overview of the process moving forward.

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Clubs have previously been reluctant to give up any intellectual property. There is now an acceptance a cash injection is vital for the organisation's long-term future.

It's understood the members are united in their support for the Brumbies to take the next step in the process to sell a stake in the franchise.

Once bids are offered, senior officials will provide further information to the members before a final vote is held on whether to proceed with the sale.

The Brumbies have repeatedly expressed their desire to only accept an offer if it serves to benefit the entire rugby community and not just the professional team.

It's this assurance that has the clubs optimistic they will share in the returns that come with a sale.

"At this stage we're all supportive of exploring these options," Queanbeyan president Grant Jones said.

"Going down this path, we only see it being a benefit for ACT rugby as a whole, at both the professional and community level."

Private equity firms have turned their attention to rugby in recent years in search of diversified revenue streams.

The deals have had mixed results, with the All Blacks benefiting from a $200 million deal with Silver Lake. English rugby, however, has been rocked by financial troubles at multiple clubs.

The Western Force were saved by mining magnate Andrew Forrest after they were cut adrift by Rugby Australia in 2017 and he has continued to pump millions into the franchise after their return to Super Rugby.

RA has also declared their intention to pursue private equity as they ramp up for a golden decade featuring the 2025 British and Irish Lions tour and two World Cups.

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