Co-captains of the Highlanders Ben Smith, left, and Nasi Manu hold the Super Rugby trophy after the franchise won their first title by beating the Hurricanes in Wellington on July 4

A group of South Island-based private investors have been granted a five-year licence to operate the reigning Super Rugby champion Highlanders, a move that safeguards the franchise's future until the end of 2020.

New Zealand Rugby (NZR) announced on Friday that a four-member group headed by Dunedin businessman Matthew Davey – the founder and chief executive of ticketing agency Ticket Direct – had secured the licensing agreement.

The investors have a 77 per cent stake in the franchise – a significantly higher proportion than investors hold in New Zealand's four other teams.

The Highlanders provincial unions retain a 13 per cent share and NZR hold the remaining 10 per cent for at least two years.

Licences have now been awarded to all New Zealand franchises, ending a process that started in late 2011.

"When we embarked on this process we aimed to ensure the foundation for the professional game in this country remained strong and could adapt to future challenges and opportunities," said NZR chief executive Steve Tew.

"We are now better equipped to ensure the professional game continues to feed a winning All Blacks team and keeps delivering for fans."

NZR retain ownership of the brands associated with each team and continue to fund player and head coach contracts, plus one assistant coach, from broadcasting and sponsorship revenue.

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The organisation also covers travel and accommodation costs throughout the regular season.

The new venture is being underwritten by a guarantee from the Invercargill City Council in exchange for one Highlanders game at Rugby Park per season - next year the city will host the Brumbies on April 30.

"The Highlanders are now well-placed to face the future with renewed confidence and build on what has been a very successful year on the field," said Tew.

"The investor group brings considerable commercial experience, particularly in the sports consumer marketing area and they have great knowledge of the business of rugby.

"This experience, coupled with strong provincial union support, will really help the Highlanders build a sustainable business and take full advantage of the opportunities ahead."

Davey added: "For those who love rugby (like our group) it was simply too good an opportunity to pass up.

"We see this as a good business opportunity, but equally we have a strong emotional attachment to the south and, for me in particular, the Highlanders.

"They've been my team from the very early days of Super Rugby but it's also fair to say that we've been impressed with the work and results that Roger Clark (chief executive), Jamie Joseph (head coach) and the previous Highlanders board have achieved, in building the Highlanders up to a point where a group such as ours would be interested.

"We are an experienced, well-resourced, innovative group and we look forward to a long and successful partnership with rugby in the south and it's certainly our ambition to build on the strong base that New Zealand Rugby has entrusted us with."

The consortium also includes Christchurch-based businessman Warren Goddard, the marketing manager at the Crusaders, Shane Drummond - a member of the inaugural board of the Tasman Rugby Union - and digital marketer Raymond Burke.

Doug Harvie,who chairs the seven-member board of the new operating company, was delighted the franchise's future had been clarified.

"Having been involved with provincial unions and the Highlanders, I am very pleased with this investment consortium taking the reins for the ensuing years.

"The commercial acumen they bring is exceptional, and will put the Highlanders in the very best position to build on last year's success," he said.