Leicester Tigers has been put up for sale for a reported asking price of £60 million.
The club, which has just had one of the worst seasons in its history, announced today that it is looking for a new owner.
It finished the 2018/19 season in 11th place, 15 points off a play-off position.
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The change in fortunes comes on the back of Tigers being the most successful club of the professional era.
Its games are the most-watched and best-attended in English rugby.
It has a 90 per cent season ticket renewal rate, even though season ticket sales have dropped by more than 1,200 in three years to just over 14,000 in the 2017/18 season.
Despite that sponsorship and Premiership Rugby income have achieved record levels, with average attendances around 21,700, in a recently expanded stadium with capacity for almost 26,000 fans.
For the past few years it has been working on plans to build a 183 room hotel and multi-storey car park either side of its Welford Road ground, while at the same time trying to balance investment in the squad.
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The club reported pre-tax losses of almost £1 million on a record turnover of more than £20 million in the season to June 2018.
Today’s decision follows a multi-million pound windfall after private equity firm CVC bought a 27 per cent stake in Premiership Rugby, which resulted in each club receiving £13 million.
Each club retains a 7.7 per cent stake in the parent organisation.
CVC wants to do for rugby what it has done for Formula One and Moto GP.
The CVC deal means the Tigers now have no net debt.
The BBC reports that the club, which is owned by various shareholders, is seeking around £60 million.
At the same time the club has announced a “full strategic review” in what it calls a bid to reclaim its status as a “dominant force in English and European rugby”.
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Tigers said CVC’s investment had sparked “several” expressions of interest from potential investors, so had decided a formal sale process was in the “best interests of the club, its players, supporters and shareholders”.
The club said it was “ideally positioned to capitalise on the new investment coming into the game” with revenues expected to increase under CVC’s marketing and commercial strategy for the wider game.
The club said: “This makes the Tigers an attractive opportunity for an investor that shares the club’s vision, with the ability to grow commercial revenues and accelerate development plans to the benefit of players, staff and fans.”
Zeus Capital is acting as the club’s financial advisor during the sale.
Tigers executive chairman Peter Tom CBE said: “CVC’s investment in Premiership Rugby has created a unique opportunity – catapulting the sport into the public consciousness like never before and broadening its appeal to potential investors.
“It is our duty as a board to explore the club’s strategic options and assess the best possible ownership structure to benefit from the changes ahead on and off the pitch.”
Chief executive Simon Cohen said: “The investment and changes in English Premiership rugby present a huge opportunity for the club and a new investor.
“As the most prestigious club in English rugby, this development will further support Leicester Tigers in its ambition to be the most successful club in England and Europe, to the benefit of our players, the club and our loyal supporters.”