Silver Lake stoush: NZ rugby's 26 provinces dismiss $3.8bn counter-offer from Forsyth Barr

New Zealand rugby's 26 provincial unions have reaffirmed their unanimous support for the proposed Silver Lake deal, in the face of staunch, ongoing opposition from the New Zealand Rugby Players' Association.

In a letter on behalf of the 26 provincial unions, Auckland chairman Stu Mather outlined the provinces' collective support for selling 12.5 per cent of NZ Rugby's commercial rights to American technology investment giants Silver Lake.

The letter sends a message that the provincial unions have not been swayed by the NZRPA's alternative with investment company Forsyth Barr to instead sell a five per cent stake in NZ Rugby's commercial rights via a public share float - a proposal that would raise about $191m- $200m less than the Silver Lake deal by targeting New Zealand investors.

The Forsyth Barr offer, which values New Zealand Rugby at a colossal $3.8 billion, was conducted at the request of the NZRPA.

The provincial unions stand to gain a significant financial influx from an initial $39m fund distribution largely aimed at the grassroots game, should the Silver Lake deal proceed.

The letter comes after NZ Rugby executives held a call with all 26 provincial unions on Thursday.

New Zealand Rugby offered to meet the NZRPA on Friday to discuss their alternative IPO proposal, but it's understood the warring parties are instead expected to meet next week.

Kiwi-owned investment company Forsyth Barr last week made an alternative offer to New Zealand Rugby. Photo / Photosport

"We wish to confirm that all 26 NZ Rugby provincial unions remain united in reaffirming the unanimous resolution passed at the recent NZR AGM to proceed with the Silver Lake partnership," the letter states.

"NZR's move towards the private equity model is driven by the need to futureproof the sport at both a community and professional level. The provincial unions have been supportive of NZR exploring all options to ensure the games long term financial viability, including an IPO option.

"The proposed Silver Lake deal stood out as it meets all of the objectives; strategic capability, enhances growth and takes advantage of global revenue opportunities, helps build a legacy for rugby with the establishment of a Legacy Fund that will grow to over $200m in the next couple of years, boosts NZR reserves through a cash injection, and provides a funding distribution to stakeholders.

"At the request of the provincial unions, an independent review was conducted by PWC and a comprehensive document presented at a workshop held in March to present on its findings. The proposed transaction document was also reviewed by Simpson Grierson prior to the AGM.

"It should be noted that NZR ran a robust consultation process prior to the vote at the AGM which spanned a number of months, with considerable information provided during due diligence. Steerco, the group charged with leading Project Future, has both Bunnings NPC and Heartland CEO and Chair representation.

New Zealand rugby's 26 provincial unions have responded to the Forsyth Barr proposal tabled by the New Zealand Players' Association. Photos / Photosport, Getty Images

"We recognise the decision is critical in securing the long-term future of rugby in our country and as a group we remain united in ensuring any decision that is made is to ensure the best outcome for Rugby Inc. To this end we fully support the NZR board and management leading any further discussions with Forsyth Barr and the RPA.

"Until we know the outcomes of any future meetings, we respectfully decline to make any further comment."