ARU loses disillusioned supporter: VicSuper15

THE ARU has lost one of the key financial backers for the proposed Melbourne Super 15 team following VicSuper15's decision to withdraw its interest because of dissatisfaction with the bid process.

It is understood the VicSuper15 directors, including mining magnate Kevin Maloney, will not invest in the new private ownership model to be created by the ARU for the team. There have been varying reports about how much money Maloney would inject into the team, ranging from $400,000 to $2million a year.

The ARU has appointed Melbourne merchant banker John Wylie to construct the ownership model.

The VicSuper15 group was unhappy with the way the ARU handled the bid process, which also included Melbourne Rebels (in conjunction with the Victorian Rugby Union) and Geoff Lord's Belgravia Group.

ARU management had agreed to award the Melbourne licence to VicSuper15, but the ARU board did not ratify the decision.

The ARU is now managing Melbourne's application to SANZAR, which is due tomorrow. "VicSuper15 proposed forming a strategic alliance with the VRU including a seat on the board," VicSuper15 spokesman Travis Atkins said in a statement.

"To date, there has been significant conflict of interest in the bidding process as a result of the VRU's position of supporting only one party and not being prepared to establish a separation between commercial and community rugby in line with ARU policy.

"To signal its dissatisfaction with the handling of the bid process and to avoid a perception of continuing conflict by the VRU, VicSuper15 has formally withdrawn from the process."


http://www.theaustralian.news.com.au...015651,00.html

Nice work VRU! I guess if you chuck a big enough Tanty, the grown ups eventually let you have your way. :sadno:

What is the VRU's problem???!!!
Whats the vibe Eebs? Like, are people of Victoria getting sick of this nonsense?

There is a theme starting to reoccur here. The ARU just can't keep anyone onside... They're failing to unify anyone in the rugby community... prospect S15 groups, Wallabies players, RUPA and present & past administrators…

^^ get over it

My senses tell me there is more to this than is being reported with regard to the VS15 component. Expect the rumour mill to start to leak in about three months.

any sentence involving rugby and money in the same sentence always has more then one spin on it

Sorry for the large chunk of stuff below, but this is a copy of a press release from VicSuper 15 that has started to make it's way around the Vic rugby community.
Eebs

Below is the press release issued by Vic Super 15 Pty Ltd announcing its withdrawal from the Super 15 franchise bid process. Please feel free to distribute to your members.

VIC SUPER 15 WITHDRAWS FROM MELBOURNE SUPER RUGBY

MEDIA RELEASE

Vic Super 15 has formally withdrawn from the Expression of Interest process commenced in July by SANZAR and the ARU.

The Australian Rugby Union (ARU) confirmed that it will lodge the application for Melbourne to become the home for the 15th Super Rugby team in 2011. The bid will be submitted to SANZAR on September 25.

To date, Vic Super 15 has participated in a bid process and met all ARU and SANZAR requirements to secure the franchise to operate the 15th Super Rugby Team in Melbourne.

Vic Super 15 was confident that it had the most compelling bid including full private funding from all Vic Super 15 Directors, substantial support from Corporate, Government and the Rugby community.

The bid team included the much respected Brian O’Shea, Mark Ella and David Campese.

Vic Super 15 submitted a private equity ownership model in compliance with the ARU’s stated policy for the Super Rugby franchise.

All three bid parties (Vic Super 15, Melbourne Rebels Rugby Union Pty Ltd and Belgravia Group) were private ownership models.

Under the private ownership model, Commercial and Community Rugby are operated separately of each other but with strong links between them. This is common in Australia with AFL, football and rugby league.

Vic Super 15 proposed forming a strategic alliance with the VRU including a seat on the Vic Super 15 Board, a Code of Conduct and Governance agreement (to be drafted by the ARU) on how the VRU and Vic Super 15 would operate. Vic Super 15 also offered equity participation to all other bid parties if they wished to participate.

In addition Vic Super 15 had proposed to establish a rugby trust that would distribute profits from the franchise to develop junior rugby and clubs in Victoria. The rugby trust would have operated Melbourne and Sydney based academies to promote community pathways and support coaching and refereeing development.

To date there has been significant conflict of interest in the bidding process as a result of the VRU’s position of supporting only one party and not being prepared to establish a separation between Commercial and Community Rugby in line with ARU policy.

Through-out the process, Vic Super 15 has avoided public comment to minimise harm to the bid and as part of a requirement under the terms agreed between Vic Super 15 and ARU.

The ARU will now construct and may have to fund an ownership model for the new entity and the structure will be separate from the VRU to enable it to focus on its core responsibilities of managing and growing Community Rugby.

John Wylie has been appointed by the ARU to assist in the process of constructing the private ownership model for the Melbourne franchise.

Vic Super 15 sole motivation was to secure the franchise for Melbourne and to operate it in a commercially sustainable, best practice way and to promote and grow the game in Victoria in conjunction with the VRU our proposed alliance partner.

To signal its dissatisfaction with the handling of the bid process and to avoid a perception of continuing conflict by the VRU, Vic Super 15 has now formally withdrawn from the EOI process.

Vic Super 15 would like to acknowledge and wholeheartedly thank its substantial support from the corporate sector, Community Rugby, and Government and wish Melbourne the best of luck in securing the new franchise.

---------- Post added at 22:18 ---------- Previous post was at 22:09 ----------

Normie, most of the rugby community is over the rubbish, despite the VRU's insistence that they are universally supported. Most people just want to get on with the bid and stop screwing up Melbourne's chance for the Super 15 team.
And Burgs, there are already whispers of lawyers gearing up after some sniping got out of hand

Cheers, Eebs can feel the frustration. It should have been left in the hands of amateurs...

What's the story with Kevin Maloney's money. Fox last night said he was still keen to stump up some dough, but Muddy's article suggests he's pulled out?