Hull KR seek private equity investment to help secure club sale
- Published
Hull KR have "stability" says CEO Paul Lakin but they want to complete the sale of the club to new investors
Hull KR are to seek new investment through a private equity company and chief executive Paul Lakin says the venture is a possible route for Super League to follow.
Rovers continue to have funding provided by chairman Neil Hudgell, but the club remains up for sale.
Lakin returned to Rovers last month after spells in commercial officer roles at Stoke City and Wolves.
"We absolutely have stability," Lakin reassured Rovers fans.
"Neil will continue to financially support the club, which we're really grateful for, and we are looking for investment but we're looking for it in the right way.
"We're going through a private equity company, which I've worked with before in football, who are doing all the work for us. It's a long process.
"In the current environment we operate in, every opportunity should be explored. Obviously it's been done in union and, if that opportunity presents itself, it's something Super League executives should certainly look at."
Premiership Rugby, in the union code, sold a share believed to be in the region of 27% to CVC Capital Partners in order to secure 拢200m of funding in December 2018.
The type of private equity investment to which Lakin refers is when a business, in this case a rugby league club, utilises a company to engage with potential investors on their behalf, using contacts to generate new funding in exchange for a portion of the business share.
The firm then receives a cut of the profits.
Lakin, who was initially involved at Craven Park between 2004-08, when Rovers reached Super League after a spell in the Championship, has returned at an important time.
The appointment of Tony Smith as head coach means Rovers have a man who has won all the domestic honours with Leeds and Warrington, and the appointment of Danny McGuire as an assistant is another boost.
Lakin is hopeful of NRL signings from Australia to add to existing imports such as Shaun Kenny-Dowall and Kane Linnett, without spending up to the salary cap.
But he also backs developing talent to follow Mikey Lewis and signings such as Jez Litten, Rowan Milnes and Matty Storton.
"The reason I came back is I genuinely think there is potential," Lakin said. "In John Bastian we have one of the most respected names in the academy game, Danny is one of greatest Super League players we've ever had and Tony is such a vastly experienced coach.
"We're not going to go from bottom of the table to the play-offs overnight. I'm a big believer in steady steps.
"You will have seen from my last time here that we made steady progress year after year and that's the intention again."
Hull KR's New Zealand forward Nathaniel Peteru, one of 11 players released by the club, has joined Leigh Centurions.