World Rugby is watching closely as Fifa pushes forward with plans to sell a commercial stake in the World Cup, raising questions about whether rugby should follow suit.
Fifa’s proposal would increase payments to member associations from $8 million to $20 million per four-year cycle, with an additional $20 million sweetener for those who vote in favour of the deal.
The Fifa World Cup across the United States, Canada and Mexico was broadly considered a success, with millions of fans paying thousands to watch 48 nations compete.
Rugby already has a significant history with private equity, most notably through CVC Capital Partners, which holds stakes in the Six Nations, Premiership Rugby and the United Rugby Championship.
CVC’s involvement in English club rugby came before the Premiership lost three clubs to financial difficulties, raising doubts about how beneficial the arrangement has truly been.
That troubled track record should serve as a warning not only to rugby but also to football, a sport already swimming in cash yet continuing to seek additional revenue streams.
Rugby’s financial situation is far more precarious, with a large number of nations genuinely struggling for funds, meaning any sell-off would need to ensure money reaches places like Suva rather than simply enriching wealthier unions.
The identity of any potential investor matters enormously in rugby in a way it might not in football, because the sport is small enough that outside money could shift its entire strategic direction.
Chinese investment could push rugby toward helping that nation exert influence in the Pacific, while American or European capital would carry its own geopolitical and commercial implications.
Europe remains the financial backbone of global rugby, with the Investec Champions Cup leading the club game and the Six Nations anchoring the international calendar each year.
Only recently have southern hemisphere giants South Africa and New Zealand moved to establish their own version of the Lions Tour, underlining how dependent the global game remains on European engagement.
A smaller sport like rugby risks selling off influence that far exceeds the actual value of any stake being transferred, handing leverage to corporate investors in exchange for a short-term financial boost.
World Rugby would be wise to keep this kind of investment on the table, but must be considerably more vigilant than football about who is allowed into the sport.
Rugby should watch how Fifa’s plan and its fallout develops, because the outcome could shape how multiple sports conduct their commercial business for decades to come.