The Australian Rugby Union’s attempt to save $6 million a year could end up bankrupting them after the Western Australian government threatened to sue the rugby governing body for more than $100 million.
The ARU’s decision to axe the Western Force has been widely condemned, and the issue looks set to play out in the courts on multiple fronts.
RugbyWA, backed by billionaire mining magnate Andrew Forrest, will find out on Wednesday whether they can appeal the Force’s axing in the NSW Supreme Court.
And WA Premier Mark McGowan has written to ARU chief executive Bill Pulver to inform him the State is investigating the prospect of suing the ARU over the Force’s axing unless the team is reinstated.
The Premier said $17 million was spent on new headquarters for the Force and $95 million was spent on redeveloping the team’s home ground nib Stadium, which is also used by A-League outfit Perth Glory.
Mr McGowan said the hefty investments were made with an expectation and understanding that the Force would continue to participate in the Super Rugby competition.
He said if the ARU went bankrupt over the matter, it would be their own fault.
“My ultimatum to the ARU is this – reinstate the Force or we’ll use every tool at our disposal to get our money back,” Mr McGowan told reporters on Monday.
“And if that means the ARU goes bankrupt, so be it.”
The ARU claim they axed the Force primarily for financial reasons.
Forrest had already pledged to bankroll any potential future losses by the Force before the ARU made their decision.
It means the Force’s exit will only save the ARU about $6 million a year – the approximate proportion of TV rights money the franchise would have received.
Thousands of fans rallied at the Force’s headquarters on Sunday to protest the ARU’s decision to cull the franchise.
Forrest said the decision lacked financial merit and hinted the Force could play elsewhere if unsuccessful in their Supreme Court appeal.
The other two teams culled from Super Rugby for next season, South Africa’s Cheetahs and the Kings, have survived by joining Europe’s Pro 14 competition.
The Force’s looming demise could also have severe ramifications for Perth Glory.
If the Force exit the scene, Glory will become the sole major tenant at nib Stadium – potentially leading to a significant rent increase to play games there.
Justin Chadwick and Angie Raphael
stagman
Guest
Yes that's right. The woes are from Melbourne because everyone has to support a 5th team. Combine the Rebels and Brumbies so you have a competitive team and only have to fund 4 teams. Pretty simple really.........................ddderrrrrrrrrrrr!!!!!!!!!
Bakkies
Guest
'Rubbish, the Brumbies and the Rebels should be combined and operate out of Melbourne with Canberra as there alternative game stadium.' How's that going to be viable? Most of Australian Rugby's financial woes are from Melbourne.
Bakkies
Guest
It does matter as there was no chance that Perth would have got a Super Rugby team had O'Neill not go to Soccer. He was gunning for a Melbourne team long before 2005 but the Kiwis kept on knocking him back at SANZAR. The main reasons were lack of depth and no domestic competition. His solution to the domestic competition was the Shut Shield by creating the Tooheys New Cup aka Premier Rugby. Go figure.
Drongo
Guest
No, they aren't and even if they were, so what? You think comments amount to contractually binding promises?
Bakkies
Guest
Exactly LMS and the Libs are in no position to risk losing seats.
Bakkies
Guest
No position? The ARU are a bunch of arsé clowns that won't listen so they deserve to be put out of business. If the WA Government won't do it the Feds will. They have already torn up Soccer admin twice and I am sure they have done it Cricket in the past too.
Bakkies
Guest
The Force are still the primary tenant and keep the facility in use in to the Winter.
Drongo
Guest
Who is Forrest? Why should he matter? Oh that's right, it's WA and billionaires run the joint. Nice. Now the pollies are falling into line as ordered.
Drongo
Guest
It's political noise, a meaningless threat to make them look good to the force supporters and the wider WA community. There is no basis for such a claim except for lost rent, but only if there are contracts in place. Even then, the landlord must minimise any potential loss by seeking other tenants or events. It makes them sound desperate to me, with nothing to cling to except meaningless threats. A party in a strong position has no need to do that.
Drongo
Guest
It's political noise, a meaningless threat to make them look good to the force supporters and the wider WA community. There is no basis for such a claim except for lost rent, but only if there are contracts in place. Even then, the landlord must minimise any potential loss by seeking other tenants or events. It makes them sound desperate to me, with nothing to cling to except meaningless threats. A party in a strong position has no need to do that.
stagman
Guest
Rubbish, the Brumbies and the Rebels should be combined and operate out of Melbourne with Canberra as there alternative game stadium. Move the team to Melbourne and grow the grass roots rugby strength in Melbourne where there is ample population to feed it. Create 4 good quality high strength teams and states. There is not the depth in Aus for 5 quality teams at the moment, that's why there are so many ex pat NZ and SAF players in the 5 teams now. Finally get rid of the NSW / ARU boys club and make Nationally represented board with equal reps from each of the 4 states and put proper business people in roles - not maggots from banks etc who aimlessly play with others money, but people who genuinely know how to promote and make money. These clowns now have no real world track record!!!!!!
Sam
Guest
Just in from my Google alerts, the ARU standing firm on cull but have agreed to help Twiggy setup an Indo Pacific comp http://www.news.com.au/sport/rugby/western-force-to-explore-playing-options-in-asia-if-court-case-fails/news-story/37c4dd0730b6add993009c600f1f049d
stagman
Guest
Go head Twiggy and McGowan...............bury these ARU clowns!!!!!!!!
piru
Roar Rookie
Front page of the West yesterday - that's a big deal for any sport, even AFL
Sam
Guest
TWAS - the WA state government believes they have a legitimate grievance with the ARU. That's what has been reported in the media. Please do not correct me when that's what the article states. As for the the thrust of my post- any government or government agency is necessarily accountable for the public money they spend. So again, if they believe, as the article states that they do, that any arrangement under which they committed those funds may not be appropriate then they should refer the matter to an appropriate agency with suitable statutory power to investigate. That said this is an emotional time for Force fans and members and I would not want my team in the firing line. I look forward to a suitable resolution which in my mind should have been a review of all 5 franchises with a suitable cull in time for the next broadcast deal.
piru
Roar Rookie
ARU owns the Force remember?
Uncle Eric
Guest
Major law firms are always happy to precede. They tend to get paid irrespective of the outcome.
Uncle Eric
Guest
Rupert Murdoch?? Heaven forbid.
Uncle Eric
Guest
According to one stats site http://www.ultimatealeague.com/records.php?type=att&season=2016-17 Perth Glory averaged 10,533, which I hesitate to say is higher than the Force's average for 2016 or 2017. Not sure if the EARU provide comprehensive stats though.
Jimbo
Guest
Dear Sand Gropers, Melbourne should have been given the franchise in the first place. Perth got because the South Africans saw it as a place to break their flights to New Zealand. Victoria has a history of rugby going back to the 1880s and has a strong club structure. Also, with the population, soccer has been able to now field two A League teams and the Melbourne Storm is getting growing crowds (and hardly has any grass roots team structure in Victoria. Personally, as a Parramatta Boy, I don't think that neither the Force or the Rebels should be cut. This was a decision by the South African Rugby Union. The ARU have no idea of marketing or developing the code. We should see how the other football codes have developed and start a full on national club competition with teams that people can as local. Then it is up to NZ and RSA to decide what they want to do. But if they stayed with a national club competition, you could have a southern hemisphere cup competition with the top four teams from each country playing off for a Champions Trophy - eventually expanding to include Asian and Pacific Island teams. Something the NRL and AFL could never do.