It's especially important that clubs now have a guaranteed revenue stream as a result of the Silver Lake deal, one union boss says.
The job of using and distributing a $200 million windfall has begun for New Zealand Rugby.
Its deal with US private equity firm Silver Lake was finally approved at a special general meeting in Auckland today.
After 18 months of wrangling the last sticking points were issues that concerned the provinicial unions.
Those included aspects of the funding model, the new commercial entity and ensuring a community rugby legacy fund would be used only for the community game.
With concerns eased and the deal approved NZR chief executive Mark Robinson said the money would provide the foundation to do special things.
But he warned that cash would not suddenly start flowing through to all areas of the game.
NZR expected to have the money in about a month's time with $37 million to be set aside as a short-term investment in rugby, while provincial unions will receive $20m.
South Canterbury Rugby chief executive Craig Calder was a strong supporter of the deal, describing it as exciting for grassroots and community level.
"It is not a silver bullet, what it is is it secures our future and we can reinvest into the game, reinvest at club level, at grassroots rugby ...we've got some security round it now that we've got some revenue. We know where our future is going."
He told Checkpoint his union would be in line for an initial $500,000 payment, possibly within two months.
Some Auckland club rugby shirts. Photo: PHOTOSPORT
The funds would be put in a reserve account to help pay for a stadium redevelopment with lighting.
Craig Calder Photo: via LinkedIn
He was especially pleased that $7m to $8m of the money agreed in the deal would go to clubs around the country.
He described this arrangement as a legacy fund for the likes of clubs within his union's area.
They would have to apply for money to spend on projects and an advisory group would be set up to administer applications.
It was believed NZR offered the provincial unions a "capped funding agreement'', so if they got a percentage of commercial income, that would hit a maximum payout if turnover increased to a certain level.
The provincial unions wanted the 17.5 percent cap removed.
While the unions were unsuccessful in their bid, they still believed the deal would be beneficial, Calder said.
Speaking about the overall deal, he said: "There's no doubt it will work out ...this will work for the benefit of New Zealand rugby."
The sport was not selling the All Blacks, instead the NZR had sold the commercial rights to the All Blacks ensuring a revenue stream that would go back into helping rugby at all levels, he said.
