WRFU and Hurricanes part ways

The Wellington Rugby Football Union and the Hurricanes have parted ways.

The WRFU have sold their reported 50% share of the Hurricanes that they have owned since 2012 to new owners, NZ Sport Investment Limited (NZSI).

NZSI is a joint venture between Malcolm Gillies and Summit Capital Limited,  and has acquired WRFU’s 50% shareholding, with the support of NZR and the other existing shareholders Y11 Sports Group, Richard Mansell and the Horowhenua Kapiti Rugby Union.

In April this year, the Hurricanes launched a successful $1.0m capital raise, following a 700,000 loss in 2024 and more forecast this year.

This was reported at the time in this article here: https://www.stuff.co.nz/sport/360637413/hurricanes-seek-1m-injection-shareholders-after-700k-loss-2024

Based on that, the WRFU would have needed to pay $0.5m as part of the $1.0m raise when their net current liabilities were $0.6m at December 2024.

As an aside, in another article in April this year, the Post stated that:

The WRFU did not respond when contacted for comment, but in its most recent annual report outgoing chair Russell Poole noted “the WRFU will be unable to participate in this issue, and as a consequence, will see its [Hurricanes] shareholding reduce from 50% to 38%”.

So, the WRFU must have found their $0.5m from other means for their share of their $1.0m investment back in April.

So this sale would be no surprise to most.

The Hurricanes were the WRFU’s last major asset. If losses continue in a few years they will need a bailout.

It will be interesting to see what direction the WRFU go from here, freed of the Hurricanes burden. More emphasis on community rugby perhaps? Also, will they be on the move again, after moving from Wellington to Upper Hutt?

As for the Hurricanes, Super Rugby has not been particularly relevant for some fans since Covid, some citing the departure of the South African teams a missed opportunity for a proper reset of top level domestic rugby in New Zealand.

It continues, however, and perhaps they would bring the fans back watching them if they signed more players with a connection to the local game and the people watching them. For example, Dominic Ropeti (Moana Pasifika) would have more fan appeal in Wellington than the guy the new loose forward they have brought in.

The pull of winning titles versus fan engagement and entertainment.

The remainder of the media release about this that was released on Monday afternoon is below:

WRFU Chair Phil Holden said securing the long-term sustainability of the WRFU has been a priority focus for the board.

“Selling our shares in the Hurricanes was necessary to recapitalise WRFU. Malcolm and NZSI will bring real energy and focus to the Hurricanes. We are pleased to retain a seat on the Hurricanes board which will ensure strategic alignment between WRFU and the Hurricanes,” he said.

Malcolm Gillies is well known in Upper Hutt and across the Wellington region as the principal of Gillies Group and is part owner of NZCIS, a first-class sports facility in Trentham and the current training and operational base of the Hurricanes. Mr. Gillies, who has recently joined the board, will become Chair of the Hurricanes.

John Mallon, director of Summit Capital, has also joined the Board, along with Peter Thomas, CEO of Gillies Group Facilities Management.

NZR will become a minority investor in the Hurricanes as part of a comprehensive re-financing of both the Hurricanes and WRFU. The refinancing package includes loan arrangements for both organisations and a new capital raise by the Hurricanes’, in which NZR will participate. NZR will appoint board members to both the Hurricanes and the WRFU.

Sir Paul Collins retired from the board in August following a 26-year association with the Hurricanes, both as a director and shareholder. His contribution to the success of the Hurricanes over a long period of time has been greatly appreciated by all stakeholders.

“The professional rugby environment and the economic climate generally, remains challenging and the Hurricanes have not been immune”, said outgoing Chair, Iain Potter.

“The last few years have been difficult for the Hurricanes financially, with operating losses up to and including the last financial year, where we are likely to post a loss of $2 million.”

Incoming Hurricanes Chair Malcolm Gillies said “NZSI is committed to providing the necessary leadership and resources to ensure the Canes remain highly competitive, but we have work to do to improve the financial performance of the organisation as well as support the growth of the Hurricanes and Poua programmes.”

This has been reflected in the appointment of outgoing GM Rugby, Tony Philp, as interim Hurricanes CEO.

The Hurricanes had previously announced that Philp would depart the club at the end of January. However, he will now stay on as CEO to provide stability and leadership for the season ahead.

“Tony is a respected member of the New Zealand rugby community, and I’m delighted he has agreed to stay with the club to help us drive the Hurricanes forward in 2026,” Gillies said.

NZR Chair David Kirk said the WRFU and the Hurricanes and Poua are critical parts of the pathway for developing All Blacks and Black Ferns and important contributors to the delivery of outstanding community rugby experiences for participants in the lower North Island.

“As we have done previously with other provincial unions and Super Rugby clubs, NZR is providing temporary financial support in the form of loan facilities on acceptable terms and a capital injection we expect to recover, to help both organisations get on a firm financial footing again. This is backed up with governance arrangements to support both organisations in their financial recovery.”

Phil Holden said: “We have greatly appreciated the support of NZR over the last few months as we have managed the impact of the 2025 result and worked through the shareholding changes.”

Meanwhile, club rugby is where it is at.

Super Rugby will take a back seat from early April when the 2026 community rugby season starts up. The draw is below.