“There’s a lot of turmoil happening in Australian rugby.” You don’t say, Mr Jones?
Those were the words of Michael Jones, the CEO (maybe still the CEO, maybe not) of the Brumbies to Tim Gavel on ABC Grandstand last Saturday.
The rest of that particular quote ran out like this: “I’m not exactly sure where all that is going to end, but rest assured that we are all trying very hard to make sure the off field stuff matches the on field.”
Unfortunately where we are now is a live look in at a dumpster fire; a Super Rugby club being torn apart by internal and external pressures.
I’d encourage everyone to listen to the interview in full if you haven’t already. That 20 minutes in a Canberra studio flipped the lid on a whole lot sparked a fuse that will run until… well, we don’t know when.
Jones in a stormy, and at times uncomfortable, interview, said the Brumbies were coming under sustained fire from sections of the Canberra and rugby community. If think it is fair to say Jones made direct links between those “rumours” and the referral to the Australian Federal Police information about the sale of the old Brumbies HQ at Griffith and defamation action initiated through a December 2015 letter to Jones by the University of Canberra vice-chancellor.
“There’s a lot of people out there that are obviously nervous and uncomfortable and that’s their problem… they feel that potentially that throwing mud at me is their best offence.”
Before we dig into the meat of this particular situation, it’s helpful to put this all into a broader context, as Jones himself did during the interview.
I’ve already said this twice this year: rugby turmoil was buried by a strong Super Rugby performance and Wallabies world cup result in 2015. However, the problems haven’t been solved.
It was a distraction. “Look over there – the Wallabies are in a world cup final!”
2016 has rolled around and suddenly we’re looking at Australian rugby without the lustre of a world cup to divert our attention. What we see isn’t pretty.
Clubs are fighting each other and the ARU. It’s been suggested that the Western Force should be closed. The ARU had to give $800,000 to the Force. Queensland Rugby Union posted a big loss. The Waratahs and Reds CEOs just jumped ship. The ARU asked an external firm to take a look at the books of all Super Rugby clubs.
That’s a bleak list.
Now the best Australian team of 2016 is literally being torn apart. The board voted to stand down Jones in the wake of his explosive interview with the ABC and he is fighting in court to keep his job.
In the interview Jones claimed he was “fighting” for the Brumbies with his hands tied because he couldn’t openly debunk the claims made in rumours about the state of the Brumbies.
“I do not want to impugn anybody,” he said.
“I don’t want to make enemies and I haven’t named anybody or made any accusations public. All the stuff has been named at me, not from me outwards. I haven’t today and I haven’t ever gone out and fought back about what’s actually happening and what the situation is.”
Despite his hands being tied, Jones did give plenty of interesting detail.
Immediately after saying some people were nervous and uncomfortable about the police investigation, he was asked whether the relationship with the University of Canberra could be repaired, despite defamation action in the wings. Jones specifically raised the Brumbies decision to invest in the facility at the university.
“The Brumbies rightly or wrongly invested close to $7 million in the facilities there…”
He obliged when pressed to explain himself: “The Brumbies financial position is they made losses 10 of the last 11 years and to invest the large proceeds of the sale of their only asset immediately into pre-paid rent for 30 years and to buy a new facility that they don’t own any equity in and that there is no recourse to actually ever get that money back. You have to go, ‘is that a clever decision?’ I look at that having worked as an investment banker and various things and go, ‘hmmm that is an interesting call’.”
Aside from the police investigation or defamation action in court, Jones clearly and specifically highlighted and then distanced himself from one of the main financial decisions made by the club in recent times. Not many media reports focused on that part of the interview, because it isn’t immediately as explosive. But people wanting information instead of rumours might be advised to start with which people agree with that contract.
Going on the logic he provided in this specific interview, I might be inclined to support Jones’ conclusion as well. It’s tough to justify locking up the proceeds of that sale ahead of time like that.
Are there other details? What did we glean about the defamation process?
Jones said he wasn’t taking the defamation action over an email sent to Joe Roff, seriously at all. “At the moment I’m doing nothing about it. If the other side want to keep pursuing it they need to stump up or shut up.”
He did provide some more detail.
“When the remedy [for the perceived defamation] was to release the Australian Federal Police documentation, is the only remedy, it doesn’t necessarily mean this is defamation.”
So, according to Jones, the defamation threat by the University of Canberra vice-chancellor says the way to fix the problem is to release the documentation related to a the federal police investigation.
Jones sets himself up as the good guy – a “change agent” – doing his best to clean up a messy situation at the Brumbies, highlighting the fact that four people have held his post within two years.
“I’m doing what has to be done for the Brumbies. If that gets people who have their own personal interest hurt by that, I do not shy away from that and do not apologise for that.”
In a huge endorsement of long form interviews, it is later on in the chat is when Jones really starts dropping bombs. You can actually hear the pressure he is under in his voice.
“I only know how to act and that’s you can’t fight half a war. So if I go to war it’s going to be ugly and there’s going to be a lot of people are going to get burnt by it,” was one bomb that people latched onto quickly.
In light of the Brumbies board standing him down, another line resonates.
“The people internally who are bowing to the pressure – because that’s all it is, if anybody is folding from the ranks they’re bowing to the pressure – to man up, to use that phrase, and do the best thing for the Brumbies.”
Has the board bowed to the pressure? Or was Jones misplaced in his view that what has been said about the club is all unsupported or untrue?
The fact that the Brumbies board said almost nothing about why they stood down the coach is both very upsetting and quite understandable.
The statement from the club was short and pretty much stated Jones had been stood down and moved on to give other platitudes that provided no information at all about the actual problem. There was no explanation as to why Jones was, or even should be, stood down. But the board probably predicted legal action would follow, so kept their cards close to their chest.
Jones has taken legal action and won an injunction. He told an ABC Canberra reporter he will go back to work. The case will go back to court next week according to reports.
During the interview Jones said there was a “cancer” eating the Brumbies that was going to be terminal.
Back in September 2015 the Brumbies board supported Jones in referring the sale of the Griffith property and surrounding transactions – seemingly the location where the first cell in the cancer mutated – to the AFP. The ARU was involved in the behind the scenes investigation, so was also presumably supportive. Accounting firm KPMG also had a look at the records before the police were brought in.
During the very interview where he said he was fighting with his hands tied, Jones has said enough to make sure whatever happens from here on out will be a more public fight. He drew clear lines between the investigation, the defamation and the ongoing instability. Until someone else pushes the conversation in a different direction it will be assumed those are the beginning and end points of motivation for powerbrokers in Canberra trying to get their way.
Once the interview aired the board either had to back their man or act. After consulting with Bill Pulver, they did act. At this point the board have moved on Jones as if he is the cancer, not the rumours coming from the outside and the defamation action. The question is whether they are confident enough in that diagnosis to pursue it through the courts, where the record can get uncomfortably public.
One alternative could be to get behind Jones and the board’s decision last year to let the AFP investigate and let the cards fall where they may. Another option is to hold up the email to Joe Roff (already nominated as a successor in a report), as proof enough to sack Jones but still support the investigation, hoping the defamation at least disappears.
It’s hard to know for sure if Jones really is just a guy who is just trying to do the right thing and clean up his patch, or whether there are other motives behind the public way he has now called out what appears to be some sort of cronyism.
The rugby public is watching with bated breath and a sense of resigned dread – we watch our administrators battle themselves too often.
Mick Harrold
Roar Rookie
Am I the only one who thinks that Jones might be the one doing the right thing here. He can't have handed documents to the AFP without reason. No-one causes damage against their own company/team without fear that if there finding are true. They might be prosecuted if it's false and you will probably lose your job in any case. Better to shut up and pretend you didn't see it. I think that to do what he did, he either did it for ego or for the right reasons. If it was just for ego, then the AFP would have just dismissed it. But they didn't..... From what I have read and I have tried to read all that is out there, it seems like there is a reason for concern for some of the the board members. The UC seems to be claiming a defamation case with Jones, but there seems to be nothing out there that I can find to defame them. It centres around an email sent to Joe Roff. which is an email to one person, so it can't be defamation. I have tried hard to find that email but I can't, so how can anyone be defamed. Which leads me to believe that the UC and some of the board members and probably Joe Roff have done something that they feel will defame them in the future. Smells a bit wiffy to me, but time will tell. People don't make defamation cases and sack CEO's unless there is something to fear. I bet this gets way more stinky before it is done. If Jones is in the right, I do hope he sticks around. If he is the stinky one, then I hope he goes soon. Somehow I think the bad smell isn't coming from Jones. It does seem like from what I can see that the Brumbies gave a heap of money to the UC and then got some back in sponsorship,. I am going to take a guess and say that a few people/board members won out of that situation financially more than the club did. Jones saw that and couldn't overlook it. It must have been blatant too for him to forward it to the AFP. P.S. Joe Roff. If you are involved in this, shame on you. You are one of my favourite players of the past. I would hate to not like you. You were one of the Wallabies best for a long time. As for Pulver. The articles make it out like he is supporting the board instead of Jones. Jones and the media have made claims that the Brumbies might fall over and put Australia in problems with Sanzar. All Pulver has done is come out and say that he will provide financial support to make sure this doesn't happen. I don't think he has really done anything except shore up Aus rugby and their contracts. He didn't actually say anything other than that. Also, if he didn't come ot and say that, sponsorship dollars are at risk. He had to do it.
RobC
Roar Guru
Listen to his interview with Gavel. It is obvious from the start that he had no intention to ruffle feathers, nor get himself sacked, or to sack his board through the clubs (as your implying). The interview is a call to external stakeholder to trust him and the process. And a plea to his internal stakeholders to hold the line. He looked very good with Gavil until: - 16:00, when he caved into a question that touched an emotional nerve, then threatening to unleash an all out war. - Then it gets worse in 17:30 when Gavil put words into his mouth, then he added in this war he can unleash will bring down not just Canberra and Australian Rugby! Mindless. The pressure is understandable and I sympathise greatly. But as CEO of a Rugby community, it is totally unacceptable language imo
Bakkies
Guest
I think Larkham's old man Geoff was on the board at the time the deal was made.
Bakkies
Guest
The clubs who constitute Brumbies Rugby have voted for a vote of no confidence in the board
Bakkies
Guest
Would be interested to see the terms of the pre-paid rent given that it was signed at the height of the GFC. Whether that a rate based on the market at the time was agreed to rather than deal with potential rent increases. I will shudder at the rent prices being charged in 10 years time given how high they are now.
Stray Gator
Roar Rookie
Chook, you're a very fair man.
Train Without A Station
Roar Guru
Well if he was unable to effectively do his job because of all this alleged back room stuff, what better way than to force their hand, and only to have himself reinstated within 48 hours. Tonight's he's currently meeting with the Presidents of all ACT Clubs. I believe there is 23 voting rights and he needs 8 to force an extraordinary meeting. I may be wrong, but the more that comes out, the more foolish I sense those against Jones will look when this ends.
MatthewSkellett
Guest
This looks a lot like deals made ' between Friends ' rather than a straightforward transparent business arrangement that had a majority vote of any kind .
Squirrel
Guest
When Oz rugby dies TRAIN will still be going on about how great the ARU and the pathways such as academies and (the no support) of the NRC is . I'll just continue to support true rugby and watch the mighty East Beasts whilst train can go to these mysterious academies and do another beep test. I hope the clubs have the balls to disconnect from the NRC and play its own private French style comp. REVOLUTION NOW
RobC
Roar Guru
Haha. Im not an investment banker, but I have many friends in this part of the world who are. Some endured famous embarrassments. Generally their own doing.
RobC
Roar Guru
Not very strategic Train. He just got himself 'sacked'
Train Without A Station
Roar Guru
Or just maybe the weekend was strategic. Jones was sick of back room sniping and wanted to bring things out in the open.
Machooka
Roar Guru
MrRobC... I totally agree with your first point but just ask do think he may have had some sort of nervous breakdown? Like the all the pressure had gotten to him and oops this happened while live on air? I loved your second point... a little experienced there? :)
RobC
Roar Guru
Thanks Elisha. - Jones lost the confidence of his board on how he conducted his interview. That was a serious lack of judgement on his part - Its never easy to find investment bankers who play the right politics - I think the Chairman should have spotted this risk - The AFP etc. All will be revealed in due course
Chivas
Guest
I may have jumped the gun here a little... but it seemed like Bill (the head of the ARU) flew in and 5 minutes later the Brumbies CEO was sacked and people were speaking like we are all now moving forward. The allegations are still outstanding and a formal investigation is underway. The way to resolve this is not by shutting down the conversation regardless of what is spilling into the public domain. All that does is shoot the messenger and ultimately fails the fans, the players and the club. I am not saying Bill or the ARU has input into hiring and firing decisions at the Brumbies, but nor in my view should they be applying pressure to wrap this up and shut it own, when there are clear conflicts of interest and pending investigations. From what I can tell people are genuinely trying to keep a lid on all this and any additional pressure being applied by third parties is not being particularly supportive of arriving at a positive outcome. I tend to find when it all hits the fan, there are plenty of people running in the opposite direction rather than standing up and facing the hard issues or supporting those that are. He hardly covered himself in glory with the way he handled the whole Beale affair and this situation is not that. Where there are claims of corruption and threats to tear down a club like the Brumbies, this needs to be taken seriously by the ARU. By all means keep it out of the public domain and assist with that as much as possible and put whatever spin on it to keep players, fans and the general public feeling good about the game and their team. But to fly in / fly out and then shortly thereafter hear that the CEO has been walked, seems like Bill as spokesperson of the ARU is condoning doing whatever is necessary to avoid public fallout even if it means failing to actually get on top of the very serious allegations being made. Easy to shoot the messenger, but in this case I think it is beyond sacking people who talk about it in an attempt to stifle the conversation in the public arena. Anyway, without the facts, I apologise if I have unfairly labelled Bills actions as being different to what they are. I was just commenting on how his latest actions come across in light of what is going on.
rock
Guest
Let'd not forget that the ACT Govt also tipped in $5mil for the move to UC. So that is $12+million all up spent to prepay a lease & 'contribute' to the fit-out with absolutely nothing to show for it at the end.
Markus
Guest
Here's hoping that "full support of the sponsors" does not have the same meaning that "full support of the board" inevitably does.
rock
Guest
It's a pre-paid 30 year lease, it's not 'free'. Why in the hell pre-pay a 30 years lease, it borders on absolute stupidity.
Mst
Guest
A quick look on the Brumbies or UC websites will show that there is no sponsorship agreement or arrangements. UC has s specific page showing sponsorships.
AnD
Guest
I think everyone is seriously forgetting that the Brumbies have no money and contributed a small amount to this process. How much equity would they like in the facility? $5 million in Canberra would buy you a block big enough to put a rugby field on in the outer suburbs and nothing else. They didn't have a pot to pi$$ in, and they clearly weren't in a good enough position to negotiate a better deal for themselves. I'm a Brumbies fan, but I am unable to fathom what they actually think they deserve for their money. They were gifted, somewhat unfairly, the right to develop their old facility and sell it. Local residents (all NIMBYs but that's beside the point) were up in arms about the development and rezoning that occurred. The Brumbies probably did not get a soli deal in all of this, but they do have a state of the art facility that they could never afford on their own. They couldn't build one in Goulburn with their resources. 30 years seems a reasonable deal to me, and having been to the facility numerous times - it is light years ahead of their previous one. I think the fact they no longer have any assets is a sign of the overall incompetence of the organisation. It's been pathetic for a long time now and does need a good clean out. Until there are more details released I will continue to be baffled by the opinion that the Brumbies should have been in a better position. I think it was pretty evident how poor the administration has been and how likely they are/were to be bent over. Let's not forget that UC came to the table when the Brumbies had nothing, and Jake Ball certainly was not putting bums on seats (as effective as it was).