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Here we go again, new minion, same paper, same lack of quoted sources, same vendetta...
Force's $300,000 hidden payments
Gerard Ryle
Thursday, August 16, 2007
The Western Force made secret payments of more than $300,000 during 2006 to players in direct contravention of Australian Rugby Union protocols.
(That is a statement of supposed fact, I hope you are ready for a law suit Gerard?)
The money was hidden in the Super 14 club's annual accounts and did not appear as "player payments", even though it was was paid to three Wallabies on the Force's books.
The Herald understands that Nathan Sharpe, Scott Fava, Cameron Shepherd and former player Chris O'Young, who has moved to Glasgow Warriors, all received the payments, with Sharpe's payment a six-figure sum. There is no suggestion the players knew about any potential breach.
The club and some of its officials have repeatedly denied making these payments and actively sought to hide their actions, the Herald has learned.
Under the protocols, no state union is to be involved in facilitating, procuring or arranging third-party deals as an inducement to sign any player without ARU approval.
But the secret arrangements date back to the formation of the club, when it was desperate to recruit top-line players.
During early 2005 the Force recruited several players and guaranteed to find them paid employment, and even outlined the amount the players would receive.
The club then went further and guaranteed to pay these players the amounts if the employment fell through, which is what occurred.
Under the protocols, teams are generally only allowed to pay players $110,000 a year, in addition to a set of agreed extras such as cars and housing allowances. International players also receive additional wages from the ARU.
The Herald understands that the secret payments are not shown within the Force's "player costs" for 2006, as reported in their annual financial statements, but are hidden within another part of their profit and loss statement. These accounts were provided to other clubs, but until now no one realised the significance.
The Western Force's aggressive policy of attracting star players has long drawn suspicion from the ARU and other Super 14 clubs. It has been central to the team's rapid improvement. The club rose from wooden spooners last year to the second most successful Australian team this season.
The payments have also had an effect at the Western Force, where several employees have been made redundant during the past 12 months as the club struggles to find a foothold in AFL-obsessed Perth.
The latest revelations are expected to escalate an ARU inquiry into player contract negotiations involving the Western Force that began in June.
That inquiry followed the publication in the Herald of a copy of an employment offer prepared for Waratahs forward Al Kanaar that showed potential third-party arrangements. Kanaar was to be paid $30,000 a year to become an "environmental advisor" for one of four companies.
One of the companies was a Force sponsor, the controversial Perth-based fuel technology company Firepower. The other three are stock market-listed entities - Woodside Petroleum, BHP and Rio Tinto.
Western Force chairman Geoff Stooke said yesterday he would not "confirm or otherwise" the existence of the payments. "I don't know who your source is and I am not prepared to comment on it."
The club responded yesterday to a set of written questions by stating: "Players salaries are a confidential matter which we are not prepared to discuss. As you have misrepresented us previously, we having nothing further to add."
Stooke told the Herald earlier this year that the Western Force was not involved in underwriting third-party deals to lure players to Perth.
The side payments at the Force are likely to be examined during a broad review the Australian Taxation Office is undertaking of all Super 14 clubs and the earnings of other sportspersons.
Club officials have had to provide information about all benefits to managers, players and their relatives in relation to tickets, vehicles, housing, loan agreements or prepaid salary deals, family travel, player awards and payments to relatives or parties associated with the player.
Cash payments have had to be declared, as well as any post-career payments as part of a player's current salary, player fines and player management fees.
gryle@smh.com.au
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