No seat for NRU on Blues board

One thing is for sure now that the Blues has announced a new partnership with a private investment company - Northland rugby fans will definitely see a pre-season game for the next seven years.

Northland Rugby Union (NRU) chairman Andrew Golightly said although the sale of the Blues meant the NRU would lose a bit of revenue, it had meant the NRU could guarantee future Blues involvement in Northland.

"I see that as providing that critical connection [between the Blues and Northland] for our fans and stakeholders," Golightly said.

"It's critical from us that we are still able to show there is a career and player pathway to Super 15.

"We just now have to make sure we move forward and make the most of that pre-season game and the other Blues programmes."

Bolton Equities, a private investment company run by Murray Bolton, will have a 40 per cent share of the deal which will see the Blues operate from September 1 under a new board chaired by Tony Carter, who is the current chairman of Fisher and Paykel Healthcare.

Before the sale of the Blues, the NRU had a 20 per cent share in the Blues which meant every year the Blues made a profit, the NRU would benefit from it. Now, the NRU holds a 3.8 per cent share.

The sale meant the NRU were forced to decide whether they were able buy more shares to lift them back to the 20 per cent they had.

"We're committed to getting everything in order here first before we go borrowing," Golightly said.

"We think we had that good financial year last year, but what we did have to face is the historical debt from 2007.

"The issue was that our balance sheet didn't allow us to retain that 20 per cent share in the Blues [of which buying in would have taken more than $100,000].

"It means that as a result of Northland not raising the total capital required we won't be sitting at the Blues board. We will still be a director on Rugby Holdings [Limited] which will include shareholders from Auckland and North Harbour."

New Zealand Rugby Union chief executive Steve Tew said he was pleased to secure the new arrangement in New Zealand's biggest city.

"This will ensure rugby at the professional level can keep thriving in a region where it faces stiff competition for sport fans' attention," Tew said.

"The Blues are tracking well this year, but we all know one good season is not enough to sustain the game long term. This new arrangement is therefore a step forward in terms of building a stronger foundation for Investec Super Rugby in Auckland.

"With fresh thinking and new capital, we believe the Blues will be better equipped to face the challenges ahead. We are very pleased with the calibre of the new faces on the Blues board and welcome them to the rugby business where we are sure they will make a difference."

Last year, New Zealand Rugby awarded licences for the Hurricanes and Crusaders. Tew said good progress was also being made with the Chiefs, which is the remaining licence available.