Bill Pulver's job on the line at ARU EGM

By Darren Walton / Wire

The future of ARU boss Bill Pulver, moreso than that of the Western Force and Melbourne Rebels, is likely to come to a head at Tuesday’s emergency general meeting in Sydney.

The Rugby Union Players’ Association and Victorian Rugby Union called for the EGM last month after being left frustrated by the ARU’s ongoing delay in naming which Australian franchise would be cut as part of SANZAAR’s plans to reduce Super Rugby to a 15-team competition in 2018.

Concerned about the mental welfare of those players affected by the uncertainty, members are seeking clarity and transparency from Pulver and the ARU board around the decision-making process.

Tuesday will be 71 days since ARU chairman Cameron Clyne said players, stakeholders and fans would know “within 72 hours” whether it was the Force or Rebels culled, along with two of South Africa’s six franchises.

But while the South African rugby union has called a special meeting for July 7 to propose which two of its teams will be dropped – almost certainly the Cheetahs and Kings – the ARU admits it still has “no definitive timeline” on when it will decide the fate of the Force and Rebels.

Australia’s governing body is in legal stoushes with both franchises and has an arbitration hearing with the Force set for July 31, after beginning mediation with the Rebels later this month over their damages claim.

The messy, seemingly endless, saga has placed Pulver under extreme pressure to keep his job.

Two of Australia’s most successful ever coaches, 1991 World Cup-winning mentor Bob Dwyer and 1984 grand slam engineer Alan Jones, have both this year called for the chief executive to step down.

Pulver is contracted until February next year, but promised in April when it was first announced that an Australian franchise would be cut that he would resign “in a heartbeat” if that was for the greater good of the game.

The 57-year-old is sticking to his word.

“If everyone in the room stood up on Tuesday and said, ‘Bill, we think it’s time for change now’, I will step down immediately,” Pulver told Fairfax Media.

“It’s not an issue of anyone having to push me out.”

Despite much angst in the rugby community, Pulver – who replaced John O’Neill in 2013 – maintains he has the majority backing to remove an Australian franchise, which he and Clyne estimates will save the governing body $6 million annually.

“The feedback I have from virtually every state is they agree that we need to go from five to four,” Pulver said.

“Most people who understand the game appreciate that we need to go from five to four.”

But he understands the frustration and anguish of those potentially affected.

“I am in multiple discussions at the moment, which I am not at liberty to discuss,” Pulver said.

“I am in the process of reducing five teams to four teams in Super Rugby and if my team were threatened, I’d be reacting the same way. I understand that.

“It’s just a difficult issue we have to get through. We’ve got to establish a willingness to confront the issues that are affecting this game.”

The Crowd Says:

2017-06-20T02:23:44+00:00

Rugby101

Guest


Quite clearly we have been misled as his statements on this are entirely contradictory!

2017-06-19T23:04:40+00:00

Concerned Supporter

Guest


Very powerful article, could Mr Clyne have misled WF,MR and the Australian Rugby Public? Get legal advice, WF and MR.

2017-06-19T22:29:59+00:00

Scott

Guest


Good job, get these bankers gone!

2017-06-19T21:33:43+00:00

Train Without A Station

Roar Guru


No. I'm realistic. Change requires those with the most to lose to agree to it. I don't see that happening.

2017-06-19T21:33:10+00:00

Train Without A Station

Roar Guru


He’s the man that brought us this debacle with his focus on the Wallabies, the Tahs and the North East suburbs of Sydney, (and grudgingly Brisbane) treating everything else in the rest of the country, both professional and community rugby, as only existing to prop up “the business”. Are you serious? Pulver has actually tried to take some power away from Sydney, such as trying to grow the NRC and implement the Super 20s to ensure Shute Shield is not the power base. But ultimately you are absolutely delusional if you think Pulver has gone rogue and done all of this. We have a board who the majority have agreed with every decision. We have member unions who have chosen not to have a 75% vote to veto anything. Everybody involved is complicit in everything and you are absolutely clueless if you think it can all be attributed to one person. He's merely the public face of the decisions.

2017-06-19T21:30:43+00:00

Train Without A Station

Roar Guru


ads that is correct. But NZ rugby recruits players from Australia and so does European and Japanese rugby. So I'm not missing something we don't have to deal with. I just referred to local opportunities as most players will prefer to stay local and only look overseas when they are overlooked.

2017-06-19T21:29:01+00:00

Train Without A Station

Roar Guru


Fa'agase is a good scrummager. Sa'ago and Lomax appear to be. Tupou is improving. There's talent there to work with.

2017-06-19T16:00:52+00:00

Crazy Horse

Roar Pro


http://www.greenandgoldrugby.com/who-do-you-think-you-are-kidding-mr-clyne-if-you-think-we-cant-do-sums/ Yes, not only do we have some very good lawyers in WA ( we have 4 university law schools) but we've got some of the country's best accountants. Someone is getting rich and it's not anyone in WA. Rugby. Time for some answers Bill & Co.

2017-06-19T12:11:57+00:00

In brief

Guest


I take that as a dry attempt at humour

2017-06-19T12:01:24+00:00

Fionn

Guest


I think Ala'alatoa, Kepu and Smith are decent scrummagers. Even Sio is okay. Robertson could barely hold it up, even with TPN helping him. The backrow and 9/10/12 are a way bigger issue in my opinion.

2017-06-19T11:40:21+00:00

Fionn

Guest


So you agree it was JON, Bakkies?

2017-06-19T11:35:40+00:00

JPR

Roar Rookie


Thank you Alison for your dedication in producing a factual account of the ARU. Hopefully someone who is attending the EGM tomorrow will bring it to the meeting and ask the ARU for a please explain.

2017-06-19T11:34:04+00:00

Bakkies

Guest


The Brumbies haven't said it either. It is been stated that the Brumbies prefer 5 teams and if a team is cut the number one source of recruitment will be through their own squad and structures rather than feasting on a side that was cut

2017-06-19T11:29:50+00:00

Bakkies

Guest


Fionn the props aren't coming through. There is no point in having a scrum coach if you haven't got the players to work with

2017-06-19T11:24:41+00:00

Bakkies

Guest


Why hasn't he been hauled in to account or taken apart like Alan Jones did to Clyne. Clyne was asked questions that are more relevant to O'Neill

2017-06-19T11:21:37+00:00

JPR

Roar Rookie


This clearly shows that the $28 million that was above budget according to Clyne, was a given lion share to the Melbourne Rebels and not to the Western Force. Not a good return on the ARU's investment.

2017-06-19T11:18:31+00:00

Bakkies

Guest


TWAS how do you think that it was being communicated? Are you being dense for the sake of being difficult? Coaching courses and manuals. The course my old man did was set up by the coaching panel. According to those who made it to the top it was and NZ have a similar structure with their coaching now from bottom to top which each coach follows from minis to rep level. Topo of this parish speaks highly of it. An up to date version of the ARU coaching manual that was brought out in the 80s and 90s is available online. As for the AIS under 8s at the time weren't in their program

2017-06-19T10:37:42+00:00

ads2600

Guest


Although I agree with your sentiment TWAS, we in NZ have countless scouts, courting our talent into The NRL, Japanese & European rugby. Just from my little town, I have friends and family who have played for NRL/ARL clubs, Tigers, Steelers, Western Reds & the Storm, Panasonic & the old Toyota club in Japan, Wasps & Toulon in Europe with a first cousin who played with Cruden & A Smith in Manawstu playing professionally in Spain. All left when in their early 20's. Another cousin gave up rugby to be an axeman (trained by David Bolstad), another 2 to play "D" league basketball in the states. So to say we have only 6 teams competing for the best talent is false.

2017-06-19T10:30:07+00:00

Rugby101

Guest


This comment courtesy of Alison Foskett

2017-06-19T10:09:42+00:00

Rugby101

Guest


More than that on the line; Within hours of the SANZAAR announcement that SuperRugby would have one less Australian team from 2018, the Chairman of the ARU (Cameron Clyne) fronted the media. He said the ARU had been under “extreme financial pressure” almost from the moment the 5th SuperRugby licence was awarded in 2010 and that the time had come for one of the ‘burdensome five’ to pack their bags. The following evening, Clyne was interviewed on Fox Sports’ Kick and Chase. During that interview, the now infamous figure of $28million received its first airing. That, said Clyne, was how much the ARU had been forced to spend over the last four years to ‘prop up’ SuperRugby. Now $28million seemed like a lot of moolah to me so I set about trying to work out how the ARU had managed to let things get so bad. Who do you think you are kidding Mr Clyne, if you think we can’t do sums Given that Clyne had indicated that the rot set in almost as soon as the ARU had awarded the 5th SuperRugby licence, I took a detailed look at the ARU’s published financial reports for each year from 2010 to 2016. The first thing that struck me was that, more often than not, the ARU’s expenditure had exceeded its revenue. Even in 2010 when we still only had 4 SuperRugby franchises, its net surplus for the year was only a smidge over $1million. In each of the next 5 years, the ARU only managed to post a net surplus once. That was in 2013 when the British and Irish Lions tour delivered a net surplus of $19.5million. In the other years, the ARU posted net deficits ranging from $6.3million (in 2014) to $9.8million (in 2015). Things did improve in 2016 thanks to the 2016-2020 TV broadcast deal, which put $61.3million into the ARU’s bank account and allowed the ARU to post a net surplus of $3.7million. The second thing that struck me was that not one of the financial reports appears to even hint at the doomsday scenario that was, apparently, bearing down on the ARU. In fact, if you were to read the 2016 report (which, incidentally, was published the same day that Clyne lamented the burden of 5 SuperRugby teams), you could be forgiven for thinking that everything in the SuperRugby garden was rosy! For example, in the “Review of operations” section of the Directors’ Report it says: “.…the new broadcast agreements delivered a significant increase in revenue in 2016 which allowed for greater investment into Super Rugby, Community Rugby and other in the development of the game.” Say what? Greater “investment” in SuperRugby? Yes! On the same day that Clyne told us the ARU had been spending unsustainable sums of money on SuperRugby for years, they launch an Annual Report that happily talks about investing more in Super Rugby! Anyway, the figures I’ve set out below tell the rest of the story as I have gleaned it from the ARU’s financial reports. I still haven’t worked out where that $28million figure came from, but I do now have a good idea where a big chunk of it went. And so will you if you read on to the end… Super Rugby – heading down the drain?   Super Rugby Grants in the period 2011 to 2016 The obvious place to start when looking at how much the ARU has spent ‘propping up’ SuperRugby is the grants. A franchise-by-franchise comparison for each year is impossible because the financial statements only apportion those payments from 2014 onwards. Consequently, the table below shows only the gross figure in years 2011 to 2013. NOTES In 2016, the Rebels received an additional $2,600,000 from the ARU. This was described as “special funding as part of the external sale agreement” of the Rebels in 2015. It brought the Rebels’ total “grants” figure for 2016 to $8.3million. In August 2016, the Force sold its SuperRugby licence and intellectual property to the ARU for $3,700,000. The ARU’s accounts treated those proceeds as “grant” funding, bringing the Force’s total figure for 2016 to $7,357,000. But it wasn’t until I came across the loans figures in the ARU’s reports that the true magnitude of its SuperRugby largesse became apparent. The only organisations that did not receive ARU loans during the period 2011 to 2016 were the Waratahs and the Force. For the Brumbies it’s less clear – although the ARU extended loans of around $0.7million to the ACT Rugby Union, it’s not clear whether that was for the Brumbies. Although most of the loan was repaid, a small amount ($27,000) was ultimately written off by the ARU in 2015. The Queensland Rugby Union was extended a $3million interest-bearing loan facility by the ARU in 2010. Again it’s not clear whether this was specifically for the Reds. The loan was fully repaid by the end of 2012. Which brings us to the Melbourne Rebels. Before the Rebels had even kicked a ball, the ARU agreed to extend them a ten-year, interest-bearing loan of $2.6million. The facility was available for draw down at $1.3million per year for 2011 and 2012. In 2013, the ARU extended a new loan facility to the Rebels of $3million for the next 12 months. In 2014, the ARU extended another new loan facility to the Rebels of “up to” $2.5million. As at 31 December 2014, the ARU financial statements showed some $8.75million in outstanding loans owed to it by the Rebels. In 2015, the ARU extended yet another loan facility to the Rebels for use in 2015. This time the amount was $4,268,000. But it isn’t until we get to mid-2015 that things get really jaw-dropping. On 1 July 2015, a new private investor took ownership of the  Rebels.  Note 23ii to the ARU’s accounts for 2015 states, “The [ARU’s] control over Melbourne Rebels Rugby Union Ltd (“MRRU”)was relinquished on 30th June 2015 pursuant to a sale and purchase agreement….. No consideration was paid to [the ARU] as part of this agreement. As part of the sale and purchase agreement, [the ARU] forgave its loans to the MRRU as set out in Note 18 [and cleared them from the balance sheet].” The loans set out in “Note 18” consisted of the $8.75million shown in the ARU’s 2014 accounts, PLUS the $4,268,000 the Rebels had received in 2015. So, when the Rebels went back into private ownership on 1 July 2015, the ARU kissed goodbye to $13,018,000 as part of the deal. Not only that, it threw in another $2.6million in “special funding” for 2016. That meant that even without the cost to the ARU of having to run the Rebels for the two years they were between owners, the ARU has so far shelled out $15.6million in (presumably) unbudgeted expenditure as a consequence of awarding the 5th SuperRugby licence. When you add in the budgeted expenditure for the 5th licence as well, it’s not hard to see why the ARU has posted more deficits than surpluses since 2010, or what is truly responsible for the financial unsustainability Clyne laments. Hopefully someone who is going to the EGM on 20 June is reading this and will ask some very pointed questions of Clyne and Pulver on behalf of every rugby fan in Australia.  

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