Terms of Reference for a Senate Inquiry into the Future of Rugby Union in Australia

[Bakkies]

this comment got me in the Feels... "The ARU's level of trust by Western Australians is at a lower level than the State of Western Australia has experienced before in sport. There is no precedent where the Western Australian Government's trust and confidence in its interactions with a National Sporting Organisation has been so misplaced as has occurred with the ARU."

Amen!

I wonder if McCusker is still working with the WA Gov't legal case?

[Bakkies]

Oh WOW

Timbo time to update and re-submit your article. I will like to see TWAS grovel at that one.

[SPaRTAN]

The WA Government's submission is now up

Is it just the two submissions up today? The WA Govt and the Alan Winney submission?

[Bakkies]

Is it just the two submissions up today? The WA Govt and the Alan Winney submission?

Andrew Luscombe is up too. You would see his posts on Green and Gold. Waiting on Submission number 8.

They've updated the WA Government's one to add the attachments.

[UAUdiver1959]

I have just read the Alan Winney submission. His bid, BIDCO placed no caveats or confidentiality restrictions on their proposal/bid. So why was Pulver and Clyne claiming Commercial In Confidence? Another lie?

It just demonstrates what a financial mess the MRRU were and are. Nice to see Rod Clarkes named once again. Seems to be a common denominator?

[Bakkies]

I have just read the Alan Winney submission. His bid, BIDCO placed no caveats or confidentiality restrictions on their proposal/bid. So why was Pulver and Clyne claiming Commercial In Confidence? Another lie?

They knew they would get nailed.

[UAUdiver1959]

The Alan Winney Submission in full

ALAN WINNEY STATEMENT ON THE 2014 BID FOR THE MELBOURNE REBELS
Following comments made at the Senate Hearings currently underway in Perth this statement has been prepared and released by Alan Winney to provide greater clarity around matters relating to negotiations that took place in 2014 wherein the ARU was offering to sell the Melbourne Rebels Rugby Club (Rebels).

I confirm that I was approached by the Australian Rugby Union (ARU) to discuss a purchase of the Rebels in late May 2014. The ARU indicated to me that they had approached me as a prospective buyer because they knew that I remained a strong financial supporter of the club and had taken regard of the fact that I was a founding Director and shareholder (2010-2013) of the Rebels, having held 28% of the initial equity. Discussions with the ARU took place during the 2014 mid-year test window and continued over the end of the 2014 Super Rugby season. Negotiations on behalf of the ARU and the Rebels were handled by Bill Pulver and Rob Clarke.

A syndicate of interested investors was assembled under the initial name of Melbourne Rebels Bid Consortium (Bidco), which became known as the Winney Consortium during the negotiation period. This group was comprised of members of the Melbourne business community who had a strong affinity with rugby, it also involved financial support from existing rugby interests based in Europe.

Bill Pulver signed an exclusivity agreement on behalf of the ARU on 5 June 2014, due diligence commenced on that date and exclusive negotiations continued for approximately seven weeks. This Consortium submitted a bid to the ARU on 18 July 2014 to buy the Rebels, with the ownership to change with an effective date of 1 January 2015. The ARU came back to the Consortium with a counter offer on 22 July 2014.

The Winney Consortium bid to buy the Rebels from the ARU was to pay $100 for the Super Rugby participation licence and the club’s intellectual property. It proposed that the Consortium would then recapitalise the club with $6 million in new equity, to take effect from the handover date. The Consortium advised that all matters up to 31 December 2014 would remain as the responsibility of the ARU and that all matters related to the post 31 December 2014 period would be the responsibly of the buyer. The buyers would absorb the anticipated 2015 losses, but were seeking the same uplift in TV rights payments in 2016-2020 period that would be paid to the other Australian Super Rugby teams. This uplift was estimated at $2million p.a. Some player concessions were requested from the ARU, but no other additional special support payments were requested or offered.

The Consortium assumed in its bid that the losses incurred by the Rebels in its first four seasons would continue in 2015, given that it would be too late to make the substantive changes needed. A budgeted loss of approximately $3 million for 2015 was agreed as realistic by both parties. The ARU did not appear to undertake any due diligence on the Consortium but did request $1million be placed in trust to protect the ARU from an event of Moral hazard, the ARU withdrew this requirement during the negotiations.

The ARU counter offer to the Consortium was an outcome that was over $4.5 million worse in 2015 and a further $1million p.a. worse in the 2016-20 period compared to the deal that had been put on the table by the Consortium. It would have meant that the Rebels would burn the full $6 million in new equity well before the end of 2015. Given the ARU position, and its unwillingness to negotiate on key terms, the Consortium withdrew from these negotiations on 25 July 2014.

The Consortium requested, and received confirmation from the ARU, that the correspondence relating to the bid and of the subsequent withdrawal of interest, had been provided to the ARU Board and that the ARU Directors were involved in the decision-making process. The Board of the Melbourne Rebels, via the CEO Rob Clarke, were also forwarded copies of the bid that was put to the ARU. These various documents were distributed without any confidentiality constraints attached to them.

[jackster]

Yeah, so Rob Clarke was heavily involved in that bid, still a Director of the Melbourne Rebels board, sees the numbers that Alan Winney has put through and decides that the Rebels will be a goer in due time - so Pulver counters the offer to Winney and he knows they are not acting in good faith and walks.
Almost immediately, Rob Clarke hooks up with Andrew Cox and sets that ball in motion . “I’ve known both men a long time,” Clarke said. “Andrew is putting his whole company behind this." The Australian 12:00AM June 19, 2015 ARU offloads the loss-making Rebels - despite not being able to tell Senator Reynolds when he met with Cox, he was pretty free and easy with his association with Cox to Wayne Smith in 2015

[UAUdiver1959]

Just remember its Bill Pulver and his great mate and school friend Rod Clarke that did all of the negotiations.

Winney must have been suspicious to request that his bid, and subsequent reason for the bids withdrawal be released to the full ARU and Rebels boards, very smart man.

Need deep in shit are Mr Pulver and Mr Clarke

[Alison]

Great submission by the Government of WA. Underlines in no uncertain terms the lies and deceit that WA has experienced from the ARU and Bill Pulver.

[Bakkies]

This takes the biscuit

The ARU did not appear to undertake any due diligence on the Consortium but did request $1million be placed in trust to protect the ARU from an event of Moral hazard, the ARU withdrew this requirement during the negotiations.

[Alison]

Just remember its Bill Pulver and his great mate and school friend Rod Clarke that did all of the negotiations.

Winney must have been suspicious to request that his bid, and subsequent reason for the bids withdrawal be released to the full ARU and Rebels boards, very smart man.

Need deep in shit are Mr Pulver and Mr Clarke

Let’s hope they both drown in it while serving time in Albury prison

[Bakkies]

Great submission by the Government of WA. Underlines in no uncertain terms the lies and deceit that WA has experienced from the ARU and Bill Pulver.

Did you get around to reading the four attachments? Attachment four Pulver stated in his letter that he requests the WA Government to forgive a loan that they had with the Force.

[Alison]

Did you get around to reading the four attachments? Attachment four Pulver stated in his letter that he requests the WA Government to forgive a loan that they had with the Force.

No, didn’t read the attachments. What a piece of work Pulver is. Not surprised he and Clarke have known each other since school. They are both from the same cess pit.

[blue]

In Alan Winney's submission it states the following:

The Consortium requested, and received confirmation from the ARU, that the correspondence relating to the bid and of the subsequent withdrawal of interest, had been provided to the ARU Board and that the ARU Directors were involved in the decision-making process. The Board of the Melbourne Rebels, via the CEO Rob Clarke, were also forwarded copies of the bid that was put to the ARU. These various documents were distributed without any confidentiality constraints attached to them.

Why then in front of the Senate Committee hearing, Billy the Puller stated the negotiations were commercially confidential and he could and would not discuss them. Nice try Billy but failed on that one.