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Perception for conflict of interest is John Mitchell's latest problem
Bret Harris and Wayne Smith | February 17, 2009
Article from: The Australian
JOHN Mitchell is wearing two hats as coach of Western Force and as a director of one of the Super 14 side's financial supporters, which may lead to the perception he has a conflict of interest.
Mitchell sits on the board of underground equipment sales company ET Mining, which has third-party endorsement agreements with several players.
ET Mining was involved in an attempt to retain Australia five-eighth Matt Giteau in Perth for the 2010 and 2011 seasons. The revelation of Mitchell's involvement with one of the Force's sponsors comes at a highly sensitive time, given he has been the subject of an inquiry into his working relationship with the club's staff and players and speculation about his future in Perth.
"It is not implicitly improper, but given the sensitivity around these things, there is the potential for conflict," leading sports lawyer John Mullins said.
"It's not impossible for him to do both roles, but he needs to be careful not to put himself into a position of conflict. The problem he's got is the perception. He may not know things, but if there is a perception that he does, it puts him in an invidious position.
"He may have a valuable contribution to make to the company. It is where the circles intersect that he needs to be careful."
Mitchell insisted he had never been involved in any third-party deals between ET Mining and Force players and deliberately kept himself at arm's length during contract negotiations.
He specifically said he had taken no part in the deal ET Mining boss Ross Graham offered to Giteau, which was designed to cover the Wallaby five-eighth's missing Firepower payments.
Pete Jarman, the lawyer acting for Ross Graham, also said that Mitchell had no involvement in negotiating the third-party deal with Giteau.
Firepower had been one of the Force's main financial supporters until the fuel technology company collapsed.
Ultimately, Giteau turned that offer down, seemingly believing he stood to do even better if the Force entered into a bidding war with the Brumbies.
Although Mitchell was extremely keen to retain his chief playmaker, he was adamant he played no role in those negotiations.
"I don't know what's in any player's contract and I don't care," Mitchell said. "Obviously, I have a major say in drawing up player acquisition lists, but any contract negotiations are handled by Mitch Hardy (general manager, rugby) and signed off by Greg Harris (chief executive)."
Mitchell said he had been invited by Graham, a close friend and fellow New Zealander, to join the board of ET Mining last June as a non-executive director, which means he contributes to strategy, planning and performance evaluation, but is not a part of the executive management team. He does, however, receive a director's fee.
He stressed that senior Force and Rugby WA officials had been made aware of his intention to become a director of the company and had expressed no reservations to him. "It was all totally up-front," Mitchell said. "I have an interest in the business, which I'm entitled to do.
"I have an interest in developing my skills outside rugby. That's the purpose of going on to the board. It's purely personal development.
"I might point out that I'm a quantity surveyor with an MBA, so I think I have something to offer the company.
"It's a mining company and we (the Force) are in a mining state. We have a huge rugby fan base in the mines who can't get to our games and I think I have a responsibility in an AFL market to promote rugby as best I can.
"I never carry out any outside commitments if they are going to conflict with my work as a coach."
Mitchell said that because the Force initially could not afford to pay him what he might have commanded had he gone elsewhere to coach, the club's founding CEO, Peter O'Meara, had agreed for him to do outside work.
Harris said the Force was comfortable with Mitchell's involvement with ET Mining.
"We have a long-term commercial relationship with ET Mining through sponsorship," Harris said.
"ET Mining supports some of our players through third-party endorsements.
"There would only be a conflict if ET Mining and Rugby WA didn't have a good relationship. We have a good relationship so there's no conflict.
"If there were any discussions between ET Mining and Rugby WA, John would excuse himself and leave the room.
"We are very comfortable with his role there."
http://www.theaustralian.news.com.au...015652,00.html
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