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Thread: Govt offers rugby union funds to keep Western Force in competition

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    Govt offers rugby union funds to keep Western Force in competition

    Nick Taylor

    The cash-strapped Australian Rugby Union could get a much-needed injection of funds from the State Government if they guarantee the Super Rugby survival of Western Force.
    The Force and Melbourne Rebels are both under threat with the ARU looking to axe a side next season as the competition is reduced from 18 to 15 sides. South Africa must lose two teams.
    The Government has agreed to pay the ARU $5 million to stage the 2019 Bledisloe Cup at Burswood stadium. It is understood they agreed to an initial $1 million payment with further payments made closer to the event.
    However, The West Australian can reveal that the Government has applied subtle pressure on the ARU, saying it may be prepared to negotiate earlier payments if the future of the Force can be guaranteed.
    The ARU announced a profit of only $3.5 million last year and would find it hard to refuse an offer that would boost their short-term finances.
    The offer was made yesterday by Sports Minister Mick Murray in a letter to ARU chairman Cameron Clyne.
    “The WA State Government is committed to rugby in Western Australia and alongside RugbyWA is seeking to secure the Western Force’s retention in the Super Rugby competition,” Mr Murray said.
    “With this in mind and conditional on the Western Force remaining in the Super Rugby competition, the WA Government would be prepared to negotiate with the ARU regarding milestone payments associated with the funding of the Bledisloe Cup in 2019.”
    The offer is in contrast to a claim that the Victorian Government has threatened to pull funding for the 2020 Bledisloe Cup and a British Lions Test in 2025, games that have not even been agreed on for Melbourne, if the Rebels are cut.
    It is understood the WA Government is interested in opening talks with the ARU about hosting both those games.
    The Government has also thrown its weight behind the Force’s legal fight after they served a writ on the ARU notifying them of their intention to apply for an injunction against the plan to revoke their licence.
    The Force have an alliance agreement with the ARU containing a clause that commits both parties through the current broadcast deal that ends in 2020.
    “We are prepared to support RugbyWA in the enforcement of any rights that necessarily arise under that agreement,” Mr Murray said.
    “The WA Government would closely investigate all previous negotiations, undertakings and representations by the ARU, should a decision be made to remove the Western Force from the competition.”

    https://thewest.com.au/sport/rugby-u...-ng-b88460341z

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    Veteran SNOB's Avatar
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    It sounds like the gloves are off! ARU have backed them selves into a corner!

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    May the FORCE be with you!

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    Immortal Contributor shasta's Avatar
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    A Cash injection to a cash-strapped sporting body from a cash-strapped government. If it wasn't so dire it would be funny. I suppose we even owe gratitude to the Barnett government for pushing ahead with the stadium build. Without it McGowan would not have this leverage to apply.

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    Legend Contributor fulvio sammut's Avatar
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    If it wasn't for Barnett's incompetence the State wouldn't have been bankrupt in the first place.

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    (formerly known as Coach) Your Humble Servant Darren's Avatar
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    It's all about the short term money for the ARU. Clever thinking by the state govt. to dangle some in front of them, esp when they are going to give it to them anyway; will be a shrewd investment if ARU take the bait

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    Legend Contributor Alison's Avatar
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    I have done some work over the last few days to study the ARU's published accounts from 2010 through to 2016 in an effort to understand how they have ended up in such a parlous financial state AND to try and identify this $28million that Clyne said had been used since 2013 to "prop up" Super Rugby.

    I'm just finalising my analysis and will publish my summaries as soon as they are done. Needless to say, that beastly $28million is not easy to identify.....

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    Quote Originally Posted by fulvio sammut View Post
    If it wasn't for Barnett's incompetence the State wouldn't have been bankrupt in the first place.
    A good case can be made to the contrary, but why bring such partisan political crap into this discussion?

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    Immortal Contributor shasta's Avatar
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    I didn't expect the Span.......ah forget it.

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    Quote Originally Posted by volvo View Post
    The Government has agreed to pay the ARU $5 million to stage the 2019 Bledisloe Cup at Burswood stadium. It is understood they agreed to an initial $1 million payment with further payments made closer to the event.
    However, The West Australian can reveal that the Government has applied subtle pressure on the ARU, saying it may be prepared to negotiate earlier payments if the future of the Force can be guaranteed.
    And is the converse true?

    That is, if the ARU culls the Western Force in 2018, then will the WA State Government withdraw its financial assistance for the 2019 Bledisloe, withhold the remaining $4 million and seek the return of the initial $1 million by the ARU.

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    Legend Contributor fulvio sammut's Avatar
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    Quote Originally Posted by SteveWA View Post
    A good case can be made to the contrary, but why bring such partisan political crap into this discussion?
    Really?

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    Veteran valzc's Avatar
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    WA Gov only to give funds to the ARU on condition Puller & Clyde leave by the side door.

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    Player LMSC's Avatar
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    Quote Originally Posted by Alison View Post
    I have done some work over the last few days to study the ARU's published accounts from 2010 through to 2016 in an effort to understand how they have ended up in such a parlous financial state AND to try and identify this $28million that Clyne said had been used since 2013 to "prop up" Super Rugby.

    I'm just finalising my analysis and will publish my summaries as soon as they are done. Needless to say, that beastly $28million is not easy to identify.....
    They've spent $20mil on the Rebels since inception

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    Legend Contributor Alison's Avatar
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    Quote Originally Posted by LMSC View Post
    They've spent $20mil on the Rebels since inception
    At least! In 2015 - when they gave the Rebels to Cox FOR ZERO PAYMENT! - they wrote off a cool $13million in loans owed to the ARU by the Rebels. Let that sink in for a bit - $13million written off just like that. Plus they gave the Rebels a "special payment" of $2.6million in addition to their standard Super Rugby grant funding of $5.7milion for the first year of Cox's ownership (2016).

    If you include the loan write off, the ARU has handed a total of $33,501,000 to the Melbourne Rebels since 2014 alone. That compares to a total of $11,695,000 given to us in the same period. And that $11million to us INCLUDES the $3.7million they paid us for selling them our IP and licence.

    And the ARU has the temerity to show US the door because Super Rugby is too costly for them to run. There is something very, very rotten about the ARU in all of this.

    I'll post my figures tomorrow. If any journos are reading this post, this would make a bloody good story in the press next week before the SANZAAR meeting. Nick Taylor - are you interested?

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    My suggestion would be to be very clear in separating what was normal SR funding from what was additional/bail-out/loan monies, otherwise someone will grab that $11.7M number and say "See, they admit they got almost half the ARU $28M bail-outs..."

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    Legend Contributor Alison's Avatar
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    And would you believe that in 2015, the ARU paid its auditors nearly twice as much as they gave to WA for community rugby (i.e. all rugby apart from Super Rugby)?!!!!!

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