The Wrap: Overreach stops Rugby Australia coup dead in its tracks

By Geoff Parkes / Expert

So what has the last few tumultuous weeks in Australian rugby taught us? Not much that we didn’t already know.

Despite a letter signed by ten ex-Wallabies captains demanding wholesale change at the top of Australian rugby administration, the establishment remains firmly in place – admittedly with CEO Raelene Castle a highly publicised casualty.

The famous line “the best laid plans of mice and men often go awry” is lifted from a 1795 poem by Robert Burns, To a Mouse. Here, 225 years later, it can be applied equally to the game of rugby in Australia, as well as the group whose ambition to change its direction has been stymied, for now at least.

One thing we’ve learnt is that – ex-captains or not – it is one thing to whip up a media frenzy, storm the front door of Rugby Australia and demand change, but it is another thing altogether to maintain enough control over events to deliver a perfect coup.

And so it was last week when new board member, the 37-day man Peter Wiggs, went from Rugby Australia chairman-in-waiting to another frustrated rugby person – just like the rest of us – in the blink of an eye. He took with him the hopes of the ex-captains and other believers in a Mosman-centered revival.

In a situation dripping with irony, perhaps the biggest idiosyncrasy is that people on both sides of the argument essentially want two of the same things: the best for Australian rugby, and chairman Paul McLean out of the way.

McLean has signalled several times his desire to step down from the board, yet rather than let events run their course for a matter of a few weeks, the impetuosity and overreach of Wiggs and New South Wales Rugby chairman Roger Davis only served to push McLean into digging in for longer to try to engineer a more conventional handover.

With McLean on his way out after an eight-year term on the board and Castle out of the way, there was an opportunity to install both a new CEO and chairman, in tune with the demands of the ex-captains group.

(Saeed Khan/AFP via Getty Images)

That this didn’t happen speaks to a comedy of errors on the part of the dissidents, another irony given the criticisms of incompetency directed at the board members they were trying to move aside.

Among their mistakes was allowing Nick Farr-Jones and Phil Kearns to take prominence, believing it would add weight to their cause and allow them a platform to spruik their credentials. It actually had the opposite effect. Because of the underhand nature of their methods, they effectively removed themselves as credible contenders as office bearers capable of unifying Australian rugby.

But it was classic overreach on the part of New South Wales chairman Roger Davis that almost singlehandedly stopped the coup dead in its tracks.

Wiggs impressed the board and the state unions in his short tenure, albeit under expectation that he wasn’t seeking a high-profile role. This is why it came as a surprise to the rest of the board when at a meeting last Monday night, Wiggs stepped forward to not only claim the chairman’s seat, but insist that Mosman native, Australian Olympic Committee CEO Matt Carroll be appointed CEO alongside him.

Unsurprisingly, the cat was set squarely among the pigeons, with board members railing against what now appeared to them to be an ultimatum and ambush.

Even so, Wiggs’ position wasn’t terminal, with Tuesday bringing an opportunity to lobby board members and insist that Wiggs and Carroll were the right team to drag Australian rugby from the mire.

Step forward Davis, who squarely in the Wiggs camp and looking to ice the cake, advised Tom Decent from the Sydney Morning Herald that the Wiggs-Carroll ticket “had the full support of the states” and that “state administrators called various RA directors on Tuesday to explain why they thought Wiggs and Carroll would be excellent candidates.”

(Photo by Mark Metcalfe/Getty Images)

Further, Decent reported that: “One (chairman) told the Herald: ‘We’re bereft of leadership at the most critical moment in our history’.”

That one chairman was, of course, Davis. The full support of the states was in fact news to those states, who on Wednesday clarified their position with board members, and by evening had cobbled together a press release signed by all eight chairmen whose surname wasn’t Davis, which expressed support for McLean and the board.

“Australian rugby’s provincial representatives do not support individuals or groups designating appointments,” it read.

“We are supportive of the process of re-structure with appropriate consultation.

“We feel it is vitally important for all rugby’s stakeholders to maintain a calm focus, and to give Paul the support and time he and the board require, as we collectively navigate through this transitional period.”

With Wiggs and Carroll ready to take over as well as twice CEO John O’Neill now back in the mix and being touted as a likely board addition along with Farr-Jones, there were too many dots too closely clustered around postcode 2088 for the board to dismiss as sheer co-incidence.

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Wiggs was rebuffed and his resignation was accepted, and despite efforts made on his behalf on Wednesday afternoon to negotiate an outcome whereby Wiggs would un-resign and drop his demands for the chair in return for Carroll being accepted as CEO, the board had seen enough.
By late afternoon they had met again and appointed Rob Clarke to the CEO position in an interim capacity.

Aside then from swapping Castle for Clarke, what exactly has been achieved? And how did the agents for change get the process so wrong?

One factor is the very reason there is agitation for change in the first place. The nominations process for the board allows for the promotion of individual board members, but is not a ready mechanism for a bloc to gain sufficient numbers to effect change en masse.

That said, because the board has undergone substantial renewal over the last two years, including the recent addition of Wiggs and Brett Godfrey, and with other board members weakened by constant attack from sections of the media, there was confidence that even without absolute numbers inside the tent, there was sufficient new blood and momentum to force change.

A second critical factor is that one of the failings of the board so vehemently trumpeted by Alan Jones and others – that the board is a closed shop, lacking in proper governance – was allowed to be turned back against them.

(AAP Image/Dan Himbrechts)

Jones was still at it in Friday’s The Australian, criticising the board, saying that “politics is everywhere in our game. It is run on the same principles as the branch stacking of political parties.”

Yet faced with the demands of a new fellow director that they not only allow him to take the chair but appoint a CEO without undergoing any formal appointment process whatsoever, the directors did the only thing they could possibly do in those circumstances. They rejected Wiggs’ advances.

Whatever criticisms have been made of the board and individual directors over time, this was a probity test the board passed with flying colours.

In doing so, they showed up comments made by Jones and others for what they were: hypocritical, partisan muck-raking. When it comes to governance, what these people decry as cronyism in others, when applied to themselves, becomes acting urgently to install people to fix the game.

The third nail in the coffin was the leaking of a private email exchange between McLean and Wiggs, where McLean – not unreasonably – was trying to broker a middle-ground solution acceptable to the board. This would allow for Wiggs to pursue what he had indicated was his ambition, without holding the board up to ridicule for waving Carroll straight into the CEO chair without even a single interview.

It was not the content of the exchange that was important, but the fact that soon afterwards it ended up at the desk of a journalist from The Australian – a reporter who has been openly hostile towards the Rugby Australia board over the last few months.

If that was intended to damage McLean and the board, it only allowed them to claim the moral high ground, and galvanised them into believing that they had dodged a bullet. It also exposed the role of Davis in his advocacy for Wiggs and for misrepresenting the position of the state unions.

Note how in the wake of the Israel Folau settlement in December, Davis was quoted in The Australian saying: “We are a united rugby family and we’re all people aligned in trying to ensure the best outcomes for the game. We want it to remain that way.”

I wonder if that one will be rolled out at the next state chairman’s meeting?

The irony is that without Davis’ overreach and a little more subtlety on his part, Wiggs may well have snuck things through. Farr-Jones certainly expressed his frustration on Friday, indicating how everything from the ex-captains letter and the relentless media attack on Castle through to the replacement of board members was part of an agreed “process”.

(Photo by Cameron Spencer/Getty Images)

Unfortunately for the ex-captains, Wiggs may have been the man they believed could deliver them the change they sought, but he wasn’t actually their man.

“This is not a criticism of Peter, but he went off-piste, and that was disappointing. I thought we had a process”, Farr-Jones said.

The best they can hope for now is that new chairman-in-waiting Hamish McLennan will give them and their agenda a sympathetic hearing and deliver some of the changes sought, assuming of course that the group is more interested in positive change for Australian rugby than seeking power for power’s sake.

Certainly, there is appetite among all parties for constitutional review. As explained in last week’s detailed column, the current constitution is working for nobody. For Australian rugby to move forward, a more appropriate and relevant governance structure is essential.

In terms of the immediate future, there are a couple of misconceptions doing the rounds. The appointment of interim CEO Rob Clarke is just that – interim. His task is solely to steer Rugby Australia through the next few months of getting rugby back on the pitch, salvaging whatever revenue he can from the COVID-19 wreck, adjusting the cost structure to suit, and working with SANZAAR to confirm professional competition structures for next year.

It is also wrong to view Clarke’s appointment as a negative in terms of the relationship between Rugby Australia and Western Australia. Clarke was chief operating officer at the time the Force were cut from Super Rugby, but he wasn’t a board member making that decision.

(Hugh Peterswald/Pacific Press/LightRocket via Getty Images)

Further, with the ice broken by Castle, it is evident via the admission of the Force to the upcoming domestic competition and recent comments made by CEO Mark Evans and coach Tim Sampson that there is now a forward-looking, collaborative mindset on the part of important people in the game in WA.

When he joins the board, McLennan can be expected to play a prominent role in securing broadcast rights for 2021 and beyond, but it is wrong to suggest that he is a stalking horse for News Corporation.

His employment background should prove to be an asset in brokering a solution to what is a very delicate and messy situation, but it should become apparent very quickly that McLennan is there to unify rugby and take it forward, and is not part of the aforementioned process.

Whether he will be up to fixing Australian rugby’s great divide or not is another question. The coup has, for now, been stopped in its tracks, but it would be naïve in the extreme to believe that we have seen the end of the back-biting and agitation.

In last week’s column I highlighted how without solving the NSW puzzle and satisfying the needs of juniors, schools, subbies, Shute Shield clubs, the Waratahs and the NSW Rugby Union in a coherent way that aligns to the national objectives [then] lasting, harmonious and effective change in Australian rugby is probably impossible.

In light of the events of the last week, that statement holds truer than ever.

And in light of his role as part of the process, and for so deviously misrepresenting the views of his fellow state chairmen, NSW chairman Davis should today be thinking very seriously about whether he has a constructive role to play in the future of Australian rugby.

Even the rebuffed Matt Carroll said of Rugby Australia over the weekend: “they seem to be constructing a new board, which is great, I wish them well.”

It is time for the process to be put aside and for the board and executive to be allowed some clear air to get on with the job.

The Crowd Says:

2020-05-14T08:01:16+00:00

Ex force fan

Guest


I am sure that Twiggy will be aware that Rugby Australia will try to get into his pockets. That is business as usual for someone with so much wealth. We however needs to look beyond 2020 as well. In the long run the Force will be owned by the WA rugby community and we should never ever accept to be treated different than any of the other major rugby playing states. We had enough of that since 2017.

2020-05-13T11:50:06+00:00

robel

Roar Pro


It was never reported as a donation.

2020-05-13T11:45:31+00:00

robel

Roar Pro


Geoff, the nominations committee is headed by Clyne, pretty fair bet he's ensured that he gets likeminded nominations put to the board to be approved, his approved board members.

2020-05-13T08:19:05+00:00

ScottD

Roar Guru


I think though the missing link is probably failing to plan or to think about what committed liabilities (like wages, rental and lease agreements or employee termination costs etc etc ) might look like or do to your business in a time of crisis. Unfortunately what we see in every crisis with most organisations (not just RA) is a tendency to spend everything today and rely on next years revenue stream being the same or better. There is a real reluctance to spend less than what is earned because there is a fear of being criticised for not doing everything you could have done to win. Obviously there is pressure to win so someone is always coming up with a valid reason why we should do something more than what we are doing today and that will give us the competitive advantage so we will win more. That is always the easy path. The harder path is to look honestly in the mirror and say “NO” we need to fix our own house first and we will provide for a future fund with (say) 5% of our revenue against a future shock (black swan) event. It only took 3 weeks of no revenue for RA to be in the toilet with respect to finances. Imagine what could have been if we had reserved even 2% of revenues for a rainy day event for the last 5 years. For example, one less person employed in a senior role by RA for last 10 years would lead to $3-5 million extra in the bank. In the scheme of the funds earned by RA ($120 million per annum) it is a pittance. Imagine if we had conserved 2% or $2.4m per annum? No organisation can’t be improved by 10% and 2% is absolutely achievable by any organisation. Even if RA had ploughed that money back into rugby infrastructure I would be happy as they’d then have more collateral to back them up for loans in hard times like now. Overall it is just really poor financial management over the last 10 years and no RA board member or CEO or member body is exempt from that criticism in my opinion.

2020-05-13T08:05:39+00:00

ScottD

Roar Guru


Maybe he had been drinking? Let's start that rumour :)

2020-05-13T08:04:43+00:00

ScottD

Roar Guru


I think the bigger picture is for WA and the Force to play nice with RA. Ultimately what we all want is a collegiate and respectful relationship and I think the WA sees that. GRR is fine but it would be better with a proper Australian domestic competition in the first half odf the season followed by GRR with WA and maybe another Australian team in it. I quite like the SA model with Curry Cup then SR and the Pro 14 access for two of their teams. I am sure there needs to be some tweaking but I am sure they will get it right. We can do the same with GRR, Domestic and Aust/NZ/PI/Japan competiton if we are smart enough.

2020-05-13T07:59:55+00:00

ScottD

Roar Guru


Yes mate that is true. Getting the permission of the local peak body before allowing your team to travel there to play is a condition that all member nations of WR have signed up to. But I think the point was that past that point RA does not control GRR as it is controlled by Hong Kong Rugby not RA.

2020-05-13T07:56:14+00:00

Ex force fan

Guest


Remarkable that you used the words Chair, CEO, unifying and Force in the same sentence Geoff and it still made sense.

2020-05-13T02:04:16+00:00

DaveJ

Roar Rookie


Enjoyed the article, though without knowing much about how the Board is formed, these discussions sometimes seem obscure. One small pedantic footnote: Robert Burns’s line as written was: “The best laid schemes o’ Mice an’ Men Gang aft agley” But the translation was obviously needed, as knowledge of Scots-English has dwindled over the years in Australia, even for those of us with Caledonian ancestors.

2020-05-13T00:48:19+00:00

DaveR

Guest


Geoff, the real issue is what future costs are RA locked into - and cant get out of - things like fixed payments for ground use, fixed costs for the head office, various fixed contracts, contracted payments to staff and players that usually dont have force majeure clauses, etc etc etc. Its about being able to show an auditor right now that you have guaranteed revenue (or cash on hand) to be able to meet those locked in costs when they fall due in the future, not just only for the remainder of the 2020 calendar year.

2020-05-12T23:58:58+00:00

ScottD

Roar Guru


Yes, I agree. Wrt WA, despite rumour to the contrary WA has always stood on its own two feet. The only exception was a $2m loan from ARU to cover part of the cost of our stadium relocation/ upgrade . This was then used as the basis for a lot of incorrect statements about our finances despite the fact that all but one of the states had received ARU bailouts far greater in the same period.

2020-05-12T23:53:34+00:00

Ex force fan

Guest


Your list is incomplete - you miss 23 - France. The original pattern was a RWC in the NH followed by one in the SH. This changed after 2011 when all the RWC are held in the NH. South Africa lost out in 2019 and 2023 despite SANZAAR support and stopped bidding for the RWC. France hosting 2023 after hosting 2007 is the real outlier. Australia plans to bid for 2027 - it is no slam dunk. The anomaly is that the SH have not hosted a RWC since 2011 and that the Australian bid for 2027 risk losing out again as the NH are able to secure the votes of Japan, Africa and South Pacific nations.

2020-05-12T21:43:41+00:00

Muglair

Roar Rookie


Everyone loves free to air TWAS. Its free. It costs $10-$15 to get into a SS game I think. $15 a month for a Kayo subscription with access to all of the SS games plus everything else is not an unreasonable ask. Pretty much the equivalent of foregoing a cup of coffee each week or two beers per month, or one third of a carton. Sometimes you just have to tell someone that in this case we just can't accommodate you.

2020-05-12T21:21:47+00:00

Muglair

Roar Rookie


Really? That is an odd situation then. Just to clarify. RA has been paying those fees for the last two seasons? Well then they have been unfairly criticised for all of that time for not supporting SS. Certainly another PR fail for RA. Or were those the liabilities of the clubs that RA assumed as part of acquiring the rights? Maybe 7 was happy with the ratings it was getting and it was a low priority to chase payment, so at least there was value in the televised game to start with. The other interesting question is whether that deal was finalised anyway. Did RA pay Club Rugby TV and 7 before securing a broadcast deal? A fair amount of money was involved.

2020-05-12T21:12:19+00:00

Muglair

Roar Rookie


They were not too backward about coming forward wanting the TV rights to the SS games. Selflessly stupid decision to grant them to RA in their last minute desperate packaging of TV rights. "We want a top to bottom package". What a plan! Hatched after Foxsports made a very attractive offer to the major competitions after being rejected by RA. It is just bizarre that people keep defending these bumbling clowns

2020-05-12T21:05:20+00:00

Muglair

Roar Rookie


Probably the right answer is who cares? What all of these have in common, as well as many others is that they are not the right people to lead Australian rugby. The customer base is the supporter base and we need a CEO who inspires the rugby supporter. Ideally a rugby man, no rugby woman has that sort of stature and experience at this time. Outsiders start with a handicap. That is someone who has a lot of rugby experiences, not just a player and not just an administrator. The first name that springs to mind is Tim Gavin. I do not know how good he would be picking up the nuts and bolts of being a CEO but that should be the job of the Chair and the Board to make sure he is surrounded by quality executives. Someone that when he speaks, the supporter stops to listen. Has the game's future in his heart. Worth more than $1m to the game, but would do the job for less (not that he should, who needs that shit in their life?). There would be others of that stature and gravitas too.

2020-05-12T16:21:56+00:00

Keith (no longer) of WA

Roar Rookie


Hi Geoff... yes they certainly do.... However I note that 'the process' mentioned by NFJ (which everyone is claiming is a coup) instead appears to refer to the undertakings Wiggs made in a meeting with the Captains reps for a confirmed review process and 3 operating committees.... that comes from Wayne Smith in The Australian Whilst they are certainly agitating for change, I still don't believe they are engineering a coup and the comments are, in my opinion falsely linked. I could certainly be wrong but even with all the mud slinging there is still nothing more than conjecture/opinion out there.

2020-05-12T15:35:19+00:00

Thembi

Roar Rookie


Rugby is a business not a mate’s club. The Board has shown no leadership for many years. Let new blood take control and manage it as a business. We have the players to be great again. We now need the failed leaders out of the way.

2020-05-12T13:26:46+00:00

Muglair

Roar Rookie


Let us hope that they first figure out how value is added, and who is adding it, before they start chopping.

2020-05-12T13:24:48+00:00

Muglair

Roar Rookie


Whether the CEO is or is not a ‘rugby person’, there does need to be a proper balance of rugby knowledge, expertise and contact base within the board and executive management. One of the issues that arose with the Royal commission in to banking was the lack of industry knowledge on boards, which is also reflected across other industries. I feel the balance is returning, but it certainly has previously veered too far from a sound base of rugby knowledge and contacts.

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