Cornish Pirates have stolen a march on some bigger sides in the Premiership by becoming the first English rugby union club to complete a significant deal with wealthy American-based backers. The Championship club have joined forces with the Pittsburgh-based private equity firm Stonewood Capital with the aim of revitalising the prospects of the Penzance side.
Landmark Investment for Cornish Pirates
The long-term arrangement would give Stonewood a substantial minority stake in the club for what is understood to be an initial seven-figure sum. Pirates officials are calling it a "landmark" deal and a "major milestone in the club's evolution".
Ambitions for Premiership Entry
Sally Pettifer, the Pirates' chief executive, also hopes it could lead to a Cornish team competing in the Premiership, with the top tier of English club rugby due to shift to a franchise model in 2029-30. "This is a hugely significant moment for Cornish Pirates," said Pettifer. "To attract investment from experienced US investors of this calibre is a powerful endorsement of our strategy, our people and our long-term vision to build real value, both financial and social."
It comes at a time of mounting interest in the English club game as an investment opportunity. Exeter's members are due to vote on Thursday on whether to approve a multimillion-pound deal with Black Knight Sports and Entertainment, whose chair, Bill Foley, is the owner of the Premier League football club Bournemouth. Red Bull has invested in Newcastle while Sir James Dyson has acquired a 50% stake in Bath and Northampton have a new minority investor in Steve Zander.
Overcoming Challenges
The Pirates do not meet the stadium criteria to gain admittance to the Premiership, but club officials believe Cornwall is still enough of a rugby hotbed to support an ambitious professional team. That dream appeared to be dissolving early last year when the Pirates came within three weeks of folding. The Pirates' longtime owner, Dicky Evans, now Sir Richard, had previously announced a three-year "sunset plan" after which his majority financial backing would cease. He had been hoping to relocate the club to a new stadium near Truro, only for withdrawn government funding and local council politics to intervene.
The Pirates have subsequently been relying on a consortium of local businessmen, who will remain involved. Their ranks were boosted last week when Richard Wastnage, co-founder of the Pharmaxo Group that deals in pharmaceuticals, joined the board. This season, the club have been operating with a playing budget of about £800,000, less than half of some of their rivals, but are still in contention for a playoff spot heading into the final weekend of the regular league campaign.
Storm Damage and Future Prospects
The prospect of new American-based funding also comes at an opportune moment given the Pirates' ground at the Mennaye Field in Penzance was badly hit by Storm Goretti in January. The main stand roof had large chunks ripped away by wind gusts of up to 90mph, causing hundreds of thousands of pounds-worth of damage. The new US investors, though, are excited to be involved. "We see a compelling opportunity in Cornish Pirates – a club with a proud history, a passionate community and a clear strategic plan for growth," said Kenn Moritz, Stonewood's president. "Rugby is entering an exciting global phase and we believe this investment places us at the heart of that journey."
