Well, well, well-the net is finally closing in. Have a great first day at work Raelene.
Australian Securities and Investment Commission to examine Melbourne Rebels dealings
Nick Taylor | PerthNow
January 14, 2018 12:34PM
SENSITIVE information has been handed to the Australian Securities and Investment Commission as it investigates Rugby Australia’s dealings with the Melbourne Rebels before axing the Western Force from Super Rugby.
The detail, that was not publicly revealed to the Senate inquiry into the culling of the Force, was requested by the corporate watchdog.
And in another twist it can be revealed the Victorian Government guaranteed Rugby Australia $4.5 million to channel to the Rebels if they promised to keep the club in Melbourne.
It is understood information sent to ASIC raises questions about RA board decision-making and whether it was able to make informed choices with the information presented.
It suggests the board may not have been given all information about deals with New Zealand businessman Andrew Cox before he was sold the licence for $1 three years ago and his sale of the club to the Victorian Rugby Union in August last year for the same price that effectively ended the Force's future.
ASIC is also assessing whether the board was fully informed of a rival offer led by former Rebels foundation member Alan Winney.
Meanwhile The Sunday Times has obtained the Special Funding Agreement between RA and the Rebels that handed them $4.5 million over two years.
The confidential document, signed by RA’s outgoing chief executive Bill Pulver and chairman Cameron Clyne, and Rebels chairman Tim North and director Owen Stone, is dated October 6, one month after the Force was chopped. It says ARU (now RA) had negotiated a funding agreement with Visit Victoria in support of Test matches in Victoria from 2020-2025.
“Further, the VV Agreement provides additional funding for the ARU in the amount of $4.5 million in connection with the continued participation of the Melbourne Rebels as a Victorian-based team in the Super Rugby competition.
“ARU will pay the Rebels Funding into a bank account owned and controlled by MRRUL (Melbourne Rebels Rugby Union Ltd) as nominated by MRRUL to ARU.
“ARU will pay the Rebels Funding to MRRUL in the following instalments:
(i) $3,000,000 on execution of this Agreement;
(ii) $1,000,000 on the first anniversary of the execution Agreement;
(iii) $500,000 on the second anniversary of the execution of this Agreement.”
It was revealed in The West Australian last September that a submission was given to the Senate inquiry detailing secret talks between RA and the Victorian Government.
The submission said RA planned to use money from Visit Victoria to buy and then close the Rebels but the Victorian Government put pressure on RA to pull out of the deal, saying they would not receive any money if they did not back away from the plan.
ASIC would not comment on the status of investigations. RA said there would be no comment.
The Rebels and VRU did not return calls when asked for comment.