New Zealand Rugby (NZR) have bought back a private investor’s stake in the Blues Super Rugby franchise after an independent review found the ownership structure was “unsustainable”, the governing body said.
NZR said it had acquired Bolton Equities Limited’s (BEL) 40 percent stake in the Auckland-based franchise for an undisclosed amount and was on the lookout for a new private investor.
The two-time Super Rugby champions ended the 2018 season at the bottom of the New Zealand Conference for the third succesive year and last made the tournament’s play-offs in 2011.
While NZR did not release the independent review, governance issues are believed to have played a part in the problems at the Blues.
The BEL investors reportedly clashed with other stakeholders, made up of provincial rugby unions, back in 2015 over whether to retain the team’s coach at the time, former All Black wing John Kirwan.
BEL bought the stake in 2013 as part of a NZR project to attract private investors to improve the game’s finances.
“We would like to thank BEL CEO Murray Bolton and his team for their contribution to the Blues over this period,” said NZR chief executive Steve Tew.
Fellow New Zealand franchises the Crusaders, Hurricanes and Chiefs have adopted a similar ownership structure without encountering major problems.
The Blues have given current head coach Tana Umaga one more year to improve the team’s fortunes after the side registered just four victories during their 2018 campaign.