Quote:
ARU already in talks to axe team when Force licence taken over
Australian Rugby Union chairman Cameron Clyne
WAYNE SMITH
The Australian12:00AM October 17, 2017
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The Australian Rugby Union had discussed cutting the number of Australian Super Rugby teams from five teams to four in August last year, eight days before entering into the Alliance agreement with the Western Force at which the Perth club voluntarily handed over their licence, a Senate Inquiry was told last night.
It was this decision to hand over their licence to the ARU, in what it thought was part of a national plan to centralise the game and its administration, that ultimately enabled the ARU to axe the Force in September this year.
The question was asked of ARU chairman Cameron Clyne, giving evidence to the Senate Inquiry on the Future of Australian Rugby, why the ARU had not informed the Force that it was discussing axing a side — even if a formal decision to remove one of the teams was not made until April this year — at the time it was negotiating to buy their licence.
Initially Clyne took exception to Senator Linda Reynolds’ question, querying how she had come into possession of confidential board documents.
“That’s interesting,” Clyne said.
“I’d be very disappointed if you’ve been given some information because all current and former directors have given an undertaking that they are adhering to the directors’ duty, so if you have received a board document — which I’d be surprised if you had given those undertaking — that you (Senator Reynolds) and I need to refer something to ASIC (the Australian Securities and Investments Commission) because that’s very concerning.
“I guess what I assume it is you’re driving towards is that there was a secret agenda or something to perhaps ...”
Senator Reynolds at that point cut him off. “Mr Clyne, I’m not suggesting that at all. I’m just saying that given that the (ARU) board … the ARU management will conduct a review noted above in order to recommend the Super Rugby team to be reduced by the next board meetings … that’s a pretty definitive statement.
“My question to you is: should that have been disclosed to the Western Force before the Alliance agreement was signed?” Clyne: “Not until the board makes a decision. We’re always exploring strategic options.
“The board had not made a decision. Our desire was to maintain five teams if we could. Why would we spend $4 million bailing them out?”
Senator Reynolds persisted, however, insisting that the ARU for some months was actively considering cutting a team and by not disclosing this fact to the Western Force as part of these negotiations, the club made a decision they have regretted to this day. “My point is that I believe the Western Force had a right to know because what the Alliance agreement did, by accident or design, was give you an opportunity to cut them. Because there was nobody else.”
Clyne rebutted this claim, insisting that the Melbourne Rebels were also in contention for the axe.
However, there is no question that because the ARU owned the Force’s licence and was allowing them to compete in Super Rugby on that condition, they were always the club most vulnerable in the entire culling process.