Andrew Forrest hits back at Australian Rugby Union claims about Western Force axeing

[lou]

Ok, I sent my letter to Greg:
31 August 2017
By email: Greg.Hunt.MP@aph.gov.au,

Dear Minister Hunt

As the Minister representing sport in this country, I call on you to step in to ask the Directors of the Board of the ARU to account for their actions following the crisis that is surrounding the great game of rugby union since their decision to cut the Western Force Super Rugby Licence and wind down the Western Australian National Rugby Championship team.

According to the ARUs own constitution, it is charged with upholding the following:
“Clause 2a: to act as “keeper of the code” of the game of Rugby in Australia from grassroots to the elite level,
Clause 2 b: to foster, promote and arrange Rugby through Australia
Clause 2 c: to promote goodwill both within Australia and outside Australia by sport and in particular through rugby.”

The ARU receives substantial Federal and State government money and to this end, there have been calls for a senate inquiry to investigate the process that the Board of the ARU followed in determining that a Super Rugby team should be cut. The people of Western Australia, the rugby community young and old, amateur and professional players alike, volunteers, fans and a growing number of the wider rugby community have been unfairly treated by this unjust decision which brings the entire game into disrepute. This has been a process of discrimination and exclusion against the people of Western Australia.

I ask you to suspend Government funding to the ARU with immediate effect until the Force is reinstated into Super Rugby.

Here are the facts:

1. The ARU systematically underfunded the Force when compared to the Melbourne Rebels to the tune of $12million over the life of the club – this is more when you aggregate the amounts out over the life span of the Rebels.

2. The ARU agreed to buy the Force’s IP rights, in good faith and an Alliance agreement was formed between both parties.

3. It is now clear that this agreement was in anything but ‘good faith’. The ARU knew at that time (Feb 18 2016) that it wanted to go back to four super rugby teams (the evidence is that they knew before they introduced the Rebels to Super Rugby that five was not the optimal number). Further, in a meeting convened in Sydney in late 2016, Rob Clarke (then COO of ARU) told the heads of each Super Rugby Franchise and each Head Coach that one team would be cut.

4. The purchase of the Force’s IP rights meant that the ARU had a team that legally they can terminate or ‘discontinue the licence’ of – albeit that this agreement was ‘in good faith’

5. The ARU offered to cut an Australian Super Rugby team from the tournament without first determining which team it would cut and without determining if it had the legal ability to cut a team during the current arrangement.

6. Rob Clarke and Todd Day from the ARU went to Perth to let the Western Force know that their licence was going to be cut. At this point the Western Force rejected the proposal to cut their team.

7. The ARU then announced a 48-72 hour time frame before they would announce which team would be cut, stating that possibly the ACT Brumbies or the Melbourne Rebels were in the firing line.

8. Rob Clarke, Todd Day and Bill Pulver have now all resigned their positions from the ARU as a direct result of this fiasco.

9. The ARU certainly received legal advice from Tim North QC stating that they had no legal grounds to cut the Melbourne Rebels and at the same time, that as owners of the Western Force Licence, they could discontinue the Licence at any time. This advice was freely given as part of the communications between the VRU and the ARU over the course of this saga.

The events of the past five months are an indictment on the ARU and their ability to run the game of rugby. As sports minister you have the ability to influence what it happening. You can and you must act.

Minister, the ARU has proved itself to be gutless during this process, please prove to the people of WA that you aren’t by acting to protect our sporting interests.

Yours faithfully

[travelling_gerry]

I love how Twiggy said " I know what the 11th hour looks like!"

I saw pretty closely one of his deals done at 11:59 and NO ONE knew until then, it was a classic!

[Hoolly Doolly]

WF law team should ask some questions over in SA like when did they know? When did the Cheetahs and Kings start the process of switching competitions? Im certain there has been a lot of longterm planning involved which might shed more insight into when the ARU knew and what their true intentions were when a Alliance agreement was proposed.

[Jules]

They are certainly not checking in the rear view mirror. Key take outs for me from the ARU response to Andrew Forrest’s accusation are:

“Rugby WA provided several opportunities to put its best business case forward”
• After the Clarke/Day “axe” the Force presentation in Perth we requested the details behind the summarised “scenarios” they modelled that determined why they were leaning towards axing the Force. This was never provided (the infamous “Spreadsheet”)
• They also did not complete the “rugby program” comparison presentation at the meeting preferring to cut to the chase and tell us that the decision was overwhelmingly “Financial” and we “did quite well” on the non-financial metrics.
• We did not put forward any case immediately after that meeting as we were never given the Terms of Reference by which we were being measured. We also felt that as they effectively owned the Club whatever we put forward would be discredited.
• We also believed that we had a robust Alliance Agreement in place and that we were “partners”
• Down the track a little we prepared a range of scenarios for the ARU based on various inputs such as:
o Historical financial and match day data
o Own the Force funding outcomes
o Cost to repurchase the license ($800k)
o Road Safety sponsorship probabilities
o Team success/Bums on seats
o Other sponsorship/ corporates
• This review produced detailed high ,low and probable business outcomes around the buy- back opportunity in the Alliance Agreement and these were presented to the ARU in much finer detail than anything they provided to us.
• Following this and in response to letters from the ARU terminating our Alliance (pre Arbitration) and at their request, we presented an update of how we saw the Financial stability of the Force post 2017 in a buy back outcome .This was thrown back in our face on the basis that:
o We have not fully funded the Own the Force campaign (Notwithstanding that the impediment to this was the ARU themselves)
o The Government had not signed the Road Safety sponsorship extension (true but et Government had given strong enough indications and we had/have a backup plan)
o The Government was putting conditions on the $4mm Bledisloe advance that they were not prepared to accept.(What they wanted was an option on future unallocated Internationals).
o Andrew Forrest’s Own the Force underwriting had no guarantees and basically they did not rate him or his promise.
• Showing extreme patience we answered each of their criticisms in detail and still they batted us out of the park stating that the “Offer was not in a Form that could be accepted”
• All of the above plus a multitude of calls and emails in the “Good Faith” demanded under the terms of the Alliance agreement happened BEFORE the Arbitrator handed his pro ARU decision down . Each letter asked them to engage with us/Andrew and work out a win /win solution. Clearly we tried but they were just not prepared to engage. Minds were made up.
• Of course the big question is , over the course of this debacle were the Rebels at any time asked to put forward THEIR Business Case and I’d suggest that answer is no because they were never really at risk and Clarke had told them they were safe (remember that was in the press too and Cox was quoted).

“Once the VRU bought back the Rebels license Clyne said the ARU’s Hands were tied”
You all know that the “bait and switch” of Cox selling the Company. Transferring the License happened after the ARU reacted to press rumours and stated categorically that “the license could not be transferred without the ARU’s written approval”. When it actually happened a few days later for the princely price of $1 there was again a public statement by the ARU that this was not legal and that they would be immediately and urgently looking into it. At that point Andrew called Clyne and suggested to him that this was his opportunity to revoke the Rebels license and get the 4 team outcome that the ARU so desperately wanted. For a brief moment we thought we were safe and had won . So what happened after that:
• It seems that they pretended to look into it but like all these events this was swept under the carpet and never mentioned again.
• The next step was the so called Vic Government support to the tune of $20mm which is based arounf revenue from International fixtures and which still remains in the shadows and no one seems to be really owning up to the question of who is actually paying and how much:
o If it’s the Vic Government are they effectively paying a higher price than $5mm for a Bledisloe (the figure WA is paying) and if so are they paying the incremental cost to the VRU or the ARU?
o Who is paying the VRU? If it is the Government then one would think that this is rather unprecedented and the other codes in Melbourne might be asking for their share.
o My theory is that the Vic Government is paying the standard $5mm to the ARU and the ARU is paying the 20% to the Rebels which is effectively reducing the amount that they can distribute to Grass Roots and/or the other States and once again Melbourne is getting a handout no one else is getting. I could be wrong but it could certainly be “managed” in the ARU financials that way.
o I stand by my theory that for the Rebels to survive the Force must die. They need our Coach our players and more backdoor funds from the ARU . If the Rebels fail financially again the ARU are alone in the crosshairs.

Pulver and Clyne saying “Sadly Andrew came too late”

Andrew is answering this himself but I would imagine it is not at all too late from a practical and planning purpose. Sanzaar will no doubt have a number of Super 15 Draw models including:
• Force are out
• Force are in Sunwolves are out
• No one is out 16 team tournament
No one has booked a flight and no city has revoked its stadium deal. I think we all know that there is NO Contractual agreement between SANZAAR and the ARU to cut an Australian Team and other than a massive loss of face (which they will get anyway if we win the appeal) there really isn’t that much at stake for the ARU.

It’s very clear that this man is a poor liar and has morphed into one of a Pathological stature. He has not even been clever enough to check his tracks, even the fresh one. That’s what liars do they only have their own form of truth.
Cheers John

Thanks for that John! Do the ARU not have any inkling of the anger this is causing not just us but I have read comments from Eastern States supporters saying they will not be members of respective teams next year. Seriously this is to cost so much more in the end than any money saved! Surely someone on the board has some sense!!

[sittingbison]

Good one lou, however I'm not sure about (5)

After yesterday's reveal, it looks like they DID get legal advice, in that to crock the Force they had to renegotiate the broadcast deal, and that all other teams were impossible to ditch.

So, in February they received advice the only team they could cut was the Force, and only if the broadcast deal was renegotiated. In March they agreed to renegotiate the broadcast deal (still with almost four seasons to run), even though there was no need to do so, and they could veto if not in Australia Rugby best interest (make that NSW rugby...scratch that make it Waratah rugby). The renegotiated deal is to ditch a team. The advice is the ONLY team they can ditch is Force, and the trigger is supplied. Circular argument, but chicken and egg revealed.

I emphasize there was no need to change the deal. There was a need to alter the format of the competition. Best option all along was three conferences of 6, sunwolves in Oz Jags in Unzud. Simple finals format. The only reason this wasn't done in 2015 was Seth Efrikor petrified at thought of not making finals, this ridiculous paying public and broadcasting unfriendly shitfest was SOLELY to insert minimum of two saffer teams into the finals.

[Occidental]

WAYNE SMITH
The Australian12:00AM August 31, 2017
Perth mining billionaire Andrew Forrest yesterday dismissed the Australian Rugby Union’s process to remove the Western Force from Super Rugby as an “ambush”, but insisted he could still continue to work with the ARU if there was a change of chairman.

“For the good of the sport, Cameron Clyne has to go,” Forrest told The Australian, shortly after giving a press conference in Perth at which he released documents that purported to show that the Force were in the ARU’s sights as early as February 24.

West Australian Premier Mark McGowan went one step further yesterday, calling on the entire ARU board of directors to resign.

“The ARU have dudded our state,” said McGowan, who has threatened to sue the sport’s national governing body to recover more than $100 million spent on providing rugby with a rectangular ground and headquarters in Perth.

Clyne, however, said there was no special formula for arranging a leadership challenge. “The *members are free at any time to call a meeting,” he said. “That’s not a problem.”

He rejected the complaint the Force had been ambushed or *subjected to a “charade” and *insisted that the process to determine which Australian team would be eliminated — which originally involved the Brumbies, the Force and the Melbourne Rebels but quickly discounted the Brumbies — was fair.

“I know there have been accusations made of the process ... but it has been a pretty clear process and there was no suggestion that there was any done deal,” Clyne said.

“Now the board has made the decision, it’s extremely difficult (to undo it), there are many more complications to deal with. If you follow a process and you ask them repeatedly for a best and final offer on August 2 and it doesn’t come, and the board makes its decision and then an offer comes, it’s very, very hard to backtrack.”

At the heart of Forrest’s *accusations were legal documents allegedly provided to the ARU on February 24 that showed that while the Brumbies and Rebels, under their Participation Deeds, could not lawfully be terminated unless there was a negotiated exit, the situation with the Force was markedly different.

Essentially, the ARU’s legal *advice was that once the broadcast deal was renegotiated (to take in SANZAAR’s change from an 18-team competition to 15 teams), the Alliance Agreement the ARU had signed with the Force when the club was in grave financial strife last year would automatically *terminate at the end of this season. The national body could cut the Force from that point.

And when the arbitration *verdict vindicated that legal *advice, that’s exactly what the ARU did, voting to “discontinue” the Force on the very same afternoon the judgment was delivered, August 11.

With Forrest’s backing, the Force have appealed to the NSW Supreme Court where a decision is expected any time from *tomorrow.


Forrest interpreted the legal advice as evidence the ARU was always intending to cull the Force and just needed to go through the “charade” of ticking all the appropriate boxes before doing so.

Clyne was adamant the legal opinion provided the ARU with only one of a range of options.

“At various stages of this process, the ARU board has requested recommendations and information from ARU management to assist with making its decision,” Clyne said. “I can only assume that Andrew has been provided with a document that contains some of the analysis that was undertaken by ARU management at the request of the board to assess the many implications and considerations for exiting each of the three teams we originally assessed.”

Forrest said there now was “a rift in trust” where he and the ARU were concerned. “I’ve been accused, as late as yesterday, of coming late to the game. Well, I assure you, I would have come in on February 24 this year if I knew that they were going to try to ambush the Force and try to pass this off as a decision based on merit.

“They knew it would look terrible but they took it because it was the easiest legal route — and that’s not leadership. That’s why we have an ever-shrinking sport, *because we lack the leadership which gives the encouragement and the enthusiasm to grow the pie.”

Asked if he would be prepared to resume negotiations with the ARU under new leadership, he *replied: “Absolutely.”

The ARU has put itself through this public relations disaster *because it believes the future of the game, even in the heartland states of NSW and Queensland, could be imperilled if it did not act.

Still, the financial crisis has sparked some exciting innovations, with the Queensland Rugby Union carrying on from the success of its inaugural Brisbane Global Tens in February to put forth an even bigger and more ambitious tournament early next year.

[Alison]

Thanks so much for your wonderful support Lou. You have no idea how much it means to us to have you, a proud Rebels fan, fighting in our corner. THIS is what rugby should be all about.

Our shout at the bar after the game!

[Alison]

Cameron Clyne is certainly living in a parallel world to the rest of us. His lies trip off his tongue with gay abanadon. I guess that's the problem with inveterate liars; they have no idea what the truth actually looks like.

[JPR]

Good one lou, however I'm not sure about (5)

After yesterday's reveal, it looks like they DID get legal advice, in that to crock the Force they had to renegotiate the broadcast deal, and that all other teams were impossible to ditch.

So, in February they received advice the only team they could cut was the Force, and only if the broadcast deal was renegotiated. In March they agreed to renegotiate the broadcast deal (still with almost four seasons to run), even though there was no need to do so, and they could veto if not in Australia Rugby best interest (make that NSW rugby...scratch that make it Waratah rugby). The renegotiated deal is to ditch a team. The advice is the ONLY team they can ditch is Force, and the trigger is supplied. Circular argument, but chicken and egg revealed.

I emphasize there was no need to change the deal. There was a need to alter the format of the competition. Best option all along was three conferences of 6, sunwolves in Oz Jags in Unzud. Simple finals format. The only reason this wasn't done in 2015 was Seth Efrikor petrified at thought of not making finals, this ridiculous paying public and broadcasting unfriendly shitfest was SOLELY to insert minimum of two saffer teams into the finals.

The trail of events as you have Lou pointed out take a logical path after the legal information written in February. Prior to this legal information there were three options tabled by SANZAAR at a meeting in November when the ARU made the executive decision to throw one Australian team under the bus.
The link below indicates the date and detail of the SANZAAR meeting.
https://thewest.com.au/sport/rugby-u...u-ng-ya-201466

[Darkness]

If those bastards show their faces in Perth next week I suggest someone makes the old "69" call and pile in on them and beat the truth outa them. Make them squeal like the pigs they are.

From Cheika's comments today, all these aru wankers think we'll get over it and get back on the wallaby train.

Noddyland stuff.

Even better idea; Crucify them.

A good old wa lynch mob could drag them outa their comfy corporate box and nail them (clync and puller) to the crossbar of the goal posts at nib stadium. They could look at each other from 100m away as kiddies threw stones at them. The best half time entertainment we could muster up.

The only way I'll go to the game is if we were assured they would be crucified before the masses. When I say masses I mean the 1000 or so yarpie supporters who don't care about the Force and the corporate box types that are only there for the free stuff.

[shasta]

I have sent this to Minister Greg Hunt greg.hunt.mp@aph.gov.au
CC senator.reynolds@aph.gov.au, julie.bishop.mp@aph.gov.au

Hon Greg Hunt,
Minister for Health & Sport,

Dear Minister,

By now you have been sent a lot of e mails about this matter. So I won't re-list all the reasons why this matter needs urgent action.

One of the main thrusts of the Arbib review of ARU Governance was to have the ARU Board act transparently in all matters. This has very clearly not happened in relation to this one. Stakeholders, especially the board of Rugby WA, have been excluded from information on the process used to decide which of the Super Rugby franchises would be consigned to the scrap heap. From April this year the little that has been said by ARU officials about this process has seemed to change constantly as more and more of the their skulduggery has come to light.

The forced exclusion of Mr Geoffrey Stooke OAM from meetings on the matter, presumably due to his past association with Rugby WA, is a blatantly secretive and prejudiced move. In the end it forced his resignation. The great majority of the ARU Board have past associations with various Unions around the country. What was different with Mr Stooke?

The ARU has used the usual tactic of "can't comment as the matter is in the courts". This is clearly an obfuscation at best, deception at worst. None of the process was under any consideration of any court and still is not. High Court Judge Hammerschlag himself has highlighted this. The only matter under scrutiny is the technical one of whether or not thy ARU could legally terminate the Western Force licence. Matters of whether the process is fair or whether the ARU has acted in good faith are not under review. A senate inquiry could investigate those.

Recommendation 12 of the ARBIB Review states: That ARU work in collaboration with Member Unions and Super Rugby teams to develop a National Charter for Australian Rugby which outlines the roles and responsibilities of all organisations at all levels of Rugby.
Australian Rugby Union should also link the payment of financial Grants to the Member Unions to specific and measurable outcomes under the National Charter.

This recommendation was accepted but has clearly not been complied with in the case of Super Rugby franchises. The history of some those franchises receiving significantly more funding and in one case twice as much hardly complies. Add to that franchises being sold for $1.00 (twice) in the middle of the night with all past debt written off by the ARU and the waters are even more muddy around ARU finance smoke and mirrors.

The ARU under it's charter is meant to be the custodian of the sport for all it's constituents and to foster and grow the game across the country. Despite the governance reforms accepted by them, this is very visibly not what has been happening. I urge you to back a senate inquiry into the financial practices of the ARU regardless of the outcome of the matter before the High Court of NSW.

Regards

[Alison]

Great letter Shasta! :-)

[sittingbison]

The trail of events as you have Lou pointed out take a logical path after the legal information written in February. Prior to this legal information there were three options tabled by SANZAAR at a meeting in November when the ARU made the executive decision to throw one Australian team under the bus.
The link below indicates the date and detail of the SANZAAR meeting.
https://thewest.com.au/sport/rugby-u...u-ng-ya-201466

Willy Puller said all clubs need to investigate their financial sustainability.
"If our Super Rugby clubs were put in a fundamentally stronger position financially that would influence the decision," Pulver told The West Australian.

Soooo.....one club investigates it's financial sustainability, and puts itself in a fundamentally stronger position financially - Own The Force. The other four clubs do nothing at all. One club gets chopped. Guess which one?

[SteveWA]

My effort, sent to Greg Hunt greg.hunt.mp@aph.gov.au cc senator.reynolds@aph.gov.au, julie.bishop.mp@aph.gov.au

Hon Greg Hunt,
Minister for Sport,

Dear Minister,

I write as a concerned Western Force member, in support of the proposal by Senator Reynolds for a senate inquiry into the financial and organisational practices of the ARU.

No doubt you have already seen many emails on the matter, so I will keep this brief.

As you are aware, the ARU signed an Alliance agreement with the Rugby WA in mid 2016. Amongst other things, this agreement committed both parties to work together to secure the future of Super Rugby in WA. On the surface it looks like a visionary approach to a real problem, and I have no doubt that those involved with the negotiation did so in good faith. However events since then have led myself (and many other people) to have a deep suspicion that some within the ARU saw this as a way of removing the Western Force. Especially given that public talk about removing a Super Rugby team began soon after the signing of that agreement.

A Senate Inquiry could determine whether this was the case by revealing when discussions first started, and with whom. That, in turn, would reveal whether there inappropriate or even illegal conduct during the negotiations for the Alliance Agreement.

My goal in making this request is to help ensure the future of the Western Force in Super Rugby, and the continued growth of the game within Western Australia at all levels. I am sure this is a goal you share as well, and I appreciate the support you, Senator Reynolds and Ms Bishop have given so far.

With regards

[Usebeo]

Great effort all. Keep the letters going. If we're going down we cant leave anything in the locker room!

Alan Joyce and Qantas should also be in our sights.