Guardian article sparks million-pound investment in Cornish Pirates

Kenn Moritz, president of private equity firm Stonewood Capital, said his family already thought he was crazy, but the catalyst for his investment in second-tier English rugby club Cornish Pirates was a Guardian article from last December. “Without that article I wouldn’t have called,” Moritz said from his home office in Pittsburgh. “It gave me an insight into what was going on in English rugby and piqued my interest.”

Moritz was trawling through his trusted worldwide news sources when he stumbled across the Pirates’ quest for fresh investment. The article, by this correspondent, detailed the club’s near-collapse less than two years ago. Somewhere inside him a light flicked on.

Five months later, one of the more improbable sporting marriages has been consummated. Stonewood now holds what it calls a “strong minority interest” on the club’s board alongside an existing consortium of local business owners. In return, it has pledged an initial seven-figure investment as a springboard to a potentially exciting next chapter.

Moritz and fellow investor John H. Tippins, both in their 60s, normally specialize in industrial companies. But if anything, the novelty has stoked their enthusiasm for the Pirates of Penzance. “Rugby is much more interesting than, say, manufacturing fibreglass fabric and engenders more cocktail conversation,” Moritz said. “I don’t really get to watch the factory at work that much.”

Fate also played a small but crucial part. “When Kenn brought this up to me I said: ‘Really? Rugby? Where?’” Tippins recalled. “He said Cornwall. And, of all places, guess where I had just returned from holiday?” After getting in touch with Sally Pettipher, the Pirates’ chief executive, they were soon even more sold. “I spoke with Sally and it was very obvious something interesting was going on,” Moritz said.

Everything is relative and no one is claiming the Pirates have stumbled across a bottomless treasure trove. Neither is the courteous Moritz, a trained lawyer, an obviously misty-eyed dreamer. He has never watched “Local Hero,” Bill Forsyth’s classic movie about a Texas-based oil executive falling in love with Scotland’s west coast, nor is he standing wistfully in acres of maize like Kevin Costner in “Field of Dreams.”

But over and above sporting romance – “I don’t know if it’s romantic, though I did watch Poldark and that was pretty romantic” – Moritz senses a tantalizing business opportunity despite his lack of specialist rugby knowledge. “We come at it with what we think is an asset – ignorance,” he said. “We look at things without having baggage or sacred cows. We ask questions and make things work with logic, common sense and maybe the experience we’ve had in other businesses. Ultimately we look at the same things: revenues, costs, how can we expand the business and make it more profitable and valuable.”

In his view, English rugby is an increasingly fertile landscape, as shown by recent significant overseas investor activity at Exeter Chiefs and Newcastle Red Bulls. “We’re aware of other investments being made,” Moritz said. “And I’m sure there are others being teed up as we speak. I think a lot of people are seeing the [same] things we do. This is a sleeping giant in certain ways. If we all take the right steps and do the right things I think the overall value of English rugby has nowhere to go but up.”

The 2031 Rugby World Cup in the United States also boosts the investment case. “We have a runway here to really get our ducks in a row for that,” Moritz said. Pettipher, who also had inquiries from Australia and Japan, believes times are changing. “The second tier is a fantastic bargain,” she said. “And if you want a bargain you might as well have Cornwall because it’s the best place on earth.”

Improved stadium facilities – either at the Mennaye Field or elsewhere – and strengthening the team will be obvious priorities. A women’s team and an academy are also under discussion. “There are lots of potential growth opportunities for the team,” Moritz said. “Clearly the revenue base will expand with more interest and success. I know Cornwall is enamoured with rugby and we have to tap into all that and leverage it. We don’t know the route it’s going to take but we all have a vision for where it’s going to go. With the right capital and fortitude we’ll get there.”

The lack of any huge historical debt, courtesy of former owner Sir Richard Evans’s longtime patronage, is a welcome bonus compared with several Premiership sides. “Some of the bigger teams with bigger budgets face problems they need to solve,” Moritz said. “Here there are also problems but they are on a smaller scale. We feel it is an opportunity for us to get the thing orientated in the right direction. So when the top tier is available that is something that could be taken advantage of.”

Pettipher believes the Pirates could be Premiership-ready inside five years, but only if it is absolutely right for the club. “We’ve always had Prem ambition and we’ve got a clear line of sight of how to do that,” she said. “The great thing about Cornwall is that it’s a rugby county. There’s also a massive Cornish diaspora. They’re as loyal to Cornwall as the Welsh are to Wales and the Scots are to Scotland. If we want to kick the door down we will get there for sure. That’s always been our ambition. No one ever wants to be second.”

Sir Richard Evans, now into his 80s and suffering from Parkinson’s, has greeted the news warmly. “The man is an absolute lion,” Pettipher said. “He’s got a progressive, debilitating disease but he’s 100% there mentally. He just loves everybody who loves Pirates. I want to see us a Premiership club within his lifetime but it’s not just my choice.”

The Pirates now have a renewed gleam in their eyes. And if anyone else fancies getting into English rugby, they now know where to look for inspiration.