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Aussie Player Exodus

Marcelo

Ken Catchpole (46)
Seeing as it was featured on the Monday News story and there is increasing discussion, I thought it was worthwhile talking about the Quade Cooper / Tim Horan situation here.

It originated on last week's RugbyHQ when Horan said that he understood that QC (Quade Cooper) wanted to stay in Australia if he could get out of his contract with Toulon. Horan then seemingly made up a figure of $200k as a potential amount of money that would need to be paid to escape the contract. Horan suggested that the ARU should pay this as it was vital to keep QC (Quade Cooper) playing in Australia.

One of the other panelists Peter Fitzsimons then suggested that was crazy and that the money should be spent on the grassroots and it was inappropriate for the ARU to do what Horan suggested.

Nick McCardle pushed for Horan to clarify his position and asked whether he truly did believe the ARU should be forking out to get players out of a foreign contract.

Horan then backed down slightly on his position and said that maybe the costs could be shared by the QRU, private backers and Cooper.

-------------

Personally I agree that it is entirely inappropriate for the ARU to be paying for Cooper to escape his contract. His salary offer in Australia is more than high enough that if $200k will get him out of his Toulon deal and he really doesn't want to go, he could wear paying the bill himself.

The $200k figure though seems to have been plucked out of the ether so who knows what it would actually take to have his Toulon contract cancelled.

Realistically if Cooper is determined to stay in Australia now he should be quite vocal about wanting to do so and not wanting to move to France. In general it's not good business to try and enforce an employment contract if someone doesn't want to be working there. They're unlikely to be a success if their heart isn't entirely in it. If Cooper starts making the right noises about wanting to stay in Australia he may find that the Toulon issue goes away without costing much at all.

When/Where QC (Quade Cooper) said he wants to stay in Australia?
 
T

Train Without a Station

Guest
Is it a Fringe Benefit by law or a business expense? What would the cost of a transfer fee be attributed to?
 

Braveheart81

Will Genia (78)
Staff member
When/Where QC (Quade Cooper) said he wants to stay in Australia?


He hasn't. Tim Horan has done all the talking.

Is it a Fringe Benefit by law or a business expense? What would the cost of a transfer fee be attributed to?


I guess it could be structured as the ARU buying the contracting rights to QC (Quade Cooper) from Toulon but I don't know if that would pass the 'smell test'. The actual nature of it would be QC (Quade Cooper) paying to get out of a contract and if his employer paid that it would be subject to FBT.
 
T

Train Without a Station

Guest
I guess it could be structured as the ARU buying the contracting rights to QC (Quade Cooper) from Toulon but I don't know if that would pass the 'smell test'. The actual nature of it would be QC (Quade Cooper) paying to get out of a contract and if his employer paid that it would be subject to FBT.


I'm no accountant but I thought on principle, it would be similar to a fee paid to a recruiter in a general business.
 
T

Train Without a Station

Guest
This fucking makes me irate.

http://www.smh.com.au/rugby-union/r...eems-destined-for-toulon-20150609-ghk0wr.html

Specifically this line.

But a letter of intent has already been signed with Toulon and it would take a six-figure donation from the ARU coffers to keep him on the books.

Do you think there is any threat that journalists may actually research the subject they are trying to talk about with authority?

If it's a letter of intent, the contract terms are yet to be finalized. If the contract terms are not finalized, it cannot be binding, as the terms are not finalized.
 

dillyboy

Colin Windon (37)
^ and I'm pretty sure that a fight was cleared by the QRU but Quade was broken so it was cancelled.

Who needs "facts" when reporting the news...
 
T

Train Without a Station

Guest
Either he has signed a contract, and to break it Toulon would want compensation.

Or he's signed a letter of intent, and he is not bound.
 

oztimmay

Tony Shaw (54)
Staff member
TWAS that would seem logical to me. However, I'm not sure how French contract law would apply in this case. Perhaps they treat the weighting on LOI's differently to Australian law?

I'm sure that somewhere, lurking under the shadows, there is a get-out clause that will make the Toulon problem go away.

To get back your main point about journalistic quality - did you really expect anything different? The story seems more weighed around generating click-bait than arguing a solid case to keep QC (Quade Cooper) in Australia. The article seems to impress that we have given up here in Australia, whereas I don't think that's the case. IF it was his last game in Australia he would receive similar treatment that big Kev and Sanchez enjoyed last week.

My view - he will stay.
 
T

Train Without a Station

Guest
Legally it's very difficult for a Letter of Intent to be binding.

A contract requires consideration. The details which remain undefined are that consideration. Therefore it cannot be a contract with undefined consideration as far as I'm aware.

I believe in some cases an LOI is treated as a contract, but my understanding is this is in business cases where it closely resembles a formal contract. I'd assume this would mean the undefined details would not alter the agreement.
 

Strewthcobber

Simon Poidevin (60)
I wonder if QC (Quade Cooper) received the "compensation money" as a sign on bonus when he agreed to the letter of intent.

If he doesn't go through with it, then he has to return the bonus.
 
T

Train Without a Station

Guest
Now there's a scenario that actually makes sense.

Is it possible that Toloun paid Quade a signing bonus which he has since used in the purchase of his new house?
 

Viking

Mark Ella (57)
Lol at anyone thinking they know anything about contract law, let alone the laws that apply in France.

I guess there's nothing we can but speculate and/or wait.
 
T

Train Without a Station

Guest
I'm not versed in the contract laws of each individual country Seb, but generally for a country in any country to be binding, there must be consideration.

In France they define 4 required elements:

- the free and informed consent of the parties;
- their ability to enter the agreement;
- a certain determined object for the contract (This is the consideration);
- a lawful cause.

A letter of intent, lacks a certain determined object for the contract (remuneration, duration, etc.), otherwise it would be a contract.
 
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