ARU to face Senate inquiry after Force axing

By News / Wire

A Senate committee will inquire into the future of rugby union in Australia, a day after the ARU’s victory in its fight to axe the Western Force from Super Rugby.

West Australian Liberal senator Linda Reynolds’s motion was carried on Wednesday after RugbyWA lost its battle in the NSW Supreme Court on Tuesday to retain the Force.

Senator Reynolds was critical of the decision-making process used by the Australia Rugby Union, and also the governing body’s lack of transparency.

“Western Force is the nation’s third-largest rugby playing community, and its removal from the national competition will leave Australian rugby all the poorer,” Senator Reynolds said.

“The reasoning behind this decision must be explained and made public.”

The Community Affairs References Committee will put rugby union under the microscope and report by November 13.

The inquiry will look at:

* ARU board deliberations leading to the decision to reduce Australian teams from five to four

* Whether there continues to be a truly national rugby footprint in Australia

* The role of national and state-based bodies in encouraging greater national participation in rugby

* The corporate governance arrangements and composition of national and state-based rugby bodies, including community representation on those bodies

* The impact of the decision to reduce the number of Australian teams on national participation in rugby.

The WA government has also threatened to sue the ARU for more than $100 million over the decision to remove the Force.

The state spent $95 million a few years ago, upgrading the Force’s home venue nib Stadium, in addition to contributing millions of dollars towards building the headquarters of RugbyWA.

WA Premier Mark McGowan hopes a rebel competition, to be set up by mining billionaire Andrew Forrest, will cause the ARU to suffer after its treatment of WA taxpayers.

The Crowd Says:

2017-09-08T05:27:08+00:00

Train Without A Station

Roar Guru


The cost of the development is irrelevant. The ARU can only possibly be on the hook for the remaining rent that the government would have earned from the tenant. And that's only if the ARU have any legal obligation. And anyway, why does Glory only have 20% of the cost? They can play as many as 28 games there a year. That's triple to quadruple the use of the Force.

2017-09-08T05:22:02+00:00

Train Without A Station

Roar Guru


The ARU has a dual responsibility that includes maintaining sporting programs Australia wide, for which they receive government funding. If they are misusing the funding, including favoring one region over the other, there is a case to answer. Absolutely. But that's not why this has come about. I've been reliably informed that that $2.5M is only for junior programs and women's 7s which is where it's used.

2017-09-08T04:40:14+00:00

Timbo (L)

Roar Guru


I don't think they were giving much choice. Sign it or pay up! The clause contains weasel words primarily to protect liability if SR folds, that I am certain is present in all SR licence contracts. They probably contain the restructuring clause as well but would require SANZAAR to execute, not the ARU.

2017-09-08T04:36:14+00:00

Timbo (L)

Roar Guru


The License is a civil/commercial matter and should not be an issue for discussion anymore. They same way the ARU are on the hook for any liability, including, but not limited to the WA government investments. The ARU has a dual responsibility that includes maintaining sporting programs Australia wide, for which they receive government funding. If they are misusing the funding, including favoring one region over the other, there is a case to answer. With no plan to preserve WA rugby given by the ARU, they are looking down the barrel of being defunded and replaced if they don't actively do something about it. $2.5 Mil doesn't sound like a lot but for a struggling organization every cent counts.

2017-09-08T04:26:23+00:00

Timbo (L)

Roar Guru


$100 mil. conservatively split 75% Force 20% Glory 5% Wallabies Agreement has another 3 years left on an 8 year deal so 3/8 ths of 75% of a $100 Mil. For argument sake, lets call it a nice round $25 Mil that the EARU are on the Hook for. We will take that in 3 yearly payments of $8Mil thank you. Will you be paying by Cheque or EFT, Sorry, we don't accept credit, you have none here Add the costs associated with revenue loss if the sponsor pulls out, The EARU are going to wish that they had their Lawyers look into the financial impact of cutting the Force, instead of just the contractual convenience.

2017-09-08T04:16:51+00:00

Timbo (L)

Roar Guru


In the case of rugby, they are being played at mcgilvray. I can't comment on what soccer is up to.

2017-09-08T00:08:54+00:00

Bakkies

Guest


Why should they move on and accept being mistreated? People who defend the ARU and don't understand what is going on in Perth are just far too dismissive.

2017-09-08T00:01:58+00:00

Bakkies

Guest


'Given this is a civil matter I am not sure what jurisdiction any State Senate enquiry even has.' Read in to what was lodged to the Senate before making assumptions. The Senate did this to Soccer Australia restructure, grow up or we will pull your funding. The ARU's shiny new home doesn't pay for itself the Feds are supplying funds for it.

2017-09-07T15:28:37+00:00

Rex

Guest


That is excatly my point heads must also roll at Rugby WA.

2017-09-07T13:37:54+00:00

Train Without A Station

Guest


Sorry to be a cynic but I think WA are doomed for ever. But if it makes you feel any better the rest of Aus Rugby are also doomed forever, just minus the next 3 years. Without attitudes such as yours, Australian rugby has been founded on self interest and groups that try to stall progression on the basis it might make their little patch of grass less important. It's prevented any long term planning for the right reasons. The AFL continually looks to expand their footprint to benefit their original clubs. Pulver has been continually howled down by Sydney centric folk for trying to support the Force and Rebels, who he merely inherited and was obligated to maintain for broadcast contracts, rather than spending money on an amateur club competition. Likewise looking to develop a closer to NZ model with the NRC. Despite it being almost identical to the Mitre 10 Cup people like Jock Cornet will say it's not a real comp like the Mitre 10 Cup. So now the board that has done more to grow the game outside the Sydney base than any before will be run out of the game for daring to make a very tough call for the greater good, coming to the only result they really could for a number of reasons, on the basis it's unpopular. And now the slighted people are siding with the Jock Cornet's and Brett Papworth's, the same people who have called for this for years, foolishly thinking they are allies. There's no way forward. Australian rugby is full of egos at all levels. Go to any club and you'll see the hangers on try and get their credit when a club is on the rise, while in NZ people tend to work for the greater good. I look forward to somebody like concerned supporter making some rambling, inane comment with something to to with volunteers as if Shute Shield is the only competition where people volunteer their time for a personal passion (in this case, their team).

2017-09-07T12:59:56+00:00

ForceFan

Guest


Apologies Georgina - it was the Payten & Pandaram article in March 2016.

2017-09-07T12:33:34+00:00

Tim Rogers

Roar Rookie


Ok being a force member and someone who is upset by the result. I am asking without going over old ground of legal, political or alternative competitions which TWAS believe is not viable can't say either disagree or agree with this view. What can be done for WA - long term solutions I mean. NRC is there but it isn't super rugby at this stage. How do you as the New ARU board member?- at least Pulver is going. 1 achieve avenues for young west aussie to develop hope of playing rugby and show off their wares with an opportunity to play for the Wallabies? 2 how do you offer the wa rugby public - long term an opportunity to watch prorugby again that is not in front of a tv but live on a regular basis? How do you give these fans something to hang their hat on and support or is it all final and we all go and support alternative sports? Watching super rugby without the force wouldn't be the same and would die a slow death as former Force players who move to other clubs may attract some followers but interest would wain as these players move on. Not really interested in following teams from Vic, Qld, NSW not sure about other force members but at pinch maybe brumbies for me since at least I have a connection there. Even so the heart wouldn't be in it like it was at the Force. Basically are WA doomed forever? Or is there a way out! I'm asking for constructive comments, honest opinions but at the same time nothing derogatory. I'm not after the scalp of other clubs, just after ideas, solutions or outcomes maybe short term pain and long term gain. I'm after optimism about the sport in WA and Aus not negativity. So please give some ideas I can hope for.

2017-09-07T12:21:07+00:00

ForceFan

Guest


Payten and Pandaram's article re "Australian Rugby Union set to take control of struggling Western Force" was headlined on 24 Mar 2014. http://www.dailytelegraph.com.au/sport/australian-rugby-union-set-to-take-control-of-struggling-western-force/news-story/3721a4e3b52161564a3c7eacf691d4fa This is an example of the leaking to which I referred.

2017-09-07T12:03:52+00:00

ForceFan

Guest


@Paul D The timeline presented here is incorrect. The ARU acquired the WF IP in Feb 2016 for a consideration of $800,000. The ARU already owned the IP of the Rebels and this was presented as part of the move towards a more centralised control of the Aussie SR franchises. It also enable the WF to increase its cash on hand while the Alliance Agreement was being developed. The rumours about relocating or winding up the Force commenced about this time or shortly after. In March 2016 the WF asked the ARU if they were willing to provide $$ asistance (in the same manner as had been provided to CRU/MRRU, QRU & NSWRU prevously. The ARU acquired the WF Operating License under the provisions of the Alliance Agreement which was finalised on 3 June 2016. This injected about $3.7M into the WF to avoid the projected EOY shortfall. About the same time SANZAAR provided notice of the Accenture review. There would clearly have been some SANZAAR preparation prior to commencing the Accenture review.

2017-09-07T10:18:30+00:00

Olly

Guest


They made it very clear and you will remember in a past comment by me that the rebels out played the force by selling the licence to the Vic government. The ARU do not own the rebels licence but do own the Force licence. Very simple really. Legally can axe the Force as proven in the courts, legally can't axe the rebels because....they don't own it.

2017-09-07T05:42:59+00:00

Matt M

Guest


Why aren't Force fans holding RugbyWA responsible for their part in this? They relinquished their licence without an ironclad agreement that Force wouldn't be cut at a later date? Surely this is the definition of business negligence? No doubt the ARU have played their part, but I think it's a pretty fair assumption if the Force still had their licence they wouldn't have been cut.

2017-09-07T05:28:05+00:00

Matt M

Guest


I think the simple truth is the ARU felt they had to reduce a team to avoid insolvency. And when it boiled down to it the Force was the only option since the ARU held the licence.

2017-09-07T04:23:28+00:00

olly

Guest


What a waste of tax payer money. They are not using their heads at all. For now the Force and Super Rugby are done. Move on.

2017-09-07T04:01:36+00:00

Rex

Guest


Surely the smaller crowd games would still be played at NIB Stadium?

2017-09-07T03:38:43+00:00

Adam

Roar Guru


I seriously doubt that the senate enquiry will turn up much of anything. Even if it does what do we propose? Dissolve the ARU so no one is running rugby in Aus? I understand that there is massive amount of angst from WA but is this more political opportunism considering the grumbling of WAxit. Because surprise, surprise the senator who moved the motion is a WA Liberal senator who voted on a motion to test for the secession from the Commonwealth. I think Force fans are being taken advantage of by politicians in WA and if they think otherwise they're dreaming. I think most of the terms of reference are going to be incredibly difficult to prove. What constitutes a national footprint? We're talking a sport that only had five teams in five capital cities with massive amounts of players and fans unrepresented (is anyone in the west of Sydney represented or country Queensland or SA, NT, or TAS)?

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