Some interesting inputs today from Payto & Pando (extracted) in News Corp online sources (my emphasis):
"THE Western Force are growing more confident of remaining in Super Rugby after advice from lawyers, and will likely meet the ARU next week to present their case.
However, the fact remains that if Melbourne Rebels owner Andrew Cox refuses to sell his licence, legally the ARU cannot remove them, leaving the Force as the only option.
What the Force are banking on is a backflip from SANZAAR on the 15-team competition, to restore it to the 18 teams it has now.
Perth officials believe they can exhaust enough money and time through legal avenues that the ARU will cave on their decision to remove a team, and they believe their South African counterparts in similar situations will do the same.
But remaining with 18 teams and the same format, identified as financially suicidal by SANZAAR, would kill much of the already dwindling interest in Super Rugby now it has become clear that officials think it is second rate."
Could any of these developments become any more bizarre and quite extraordinary in the context Super rugby faces in business and fan adherence terms?
The ARU was going to wrap all this up in a mere 3 days from when the culling announcement was made. They obviously thought it would all be 'a simple matter'.
Perhaps they lost the files wherein was to be found the Force-ARU Alliance Agreement and Cox's licensing agreement? Mistakes do happen after all, even in the best run organisations.
If the above media assessment is true, I find it truly staggering that:
(i) the ARU could sign a binding agreement with RugbyWA in August 2016 that, inter alia, would guarantee the Force's existence through 2020 and then, just 8 months later, decide the Force could be culled from Super rugby forthwith and thus give no consideration to the nature of that binding agreement, and
(ii) the ARU would seemingly grant a full rugby playing rights license to a party in a major State that permits that party to retain that license solely at its own discretion and without relation to, e.g., team performance KPIs, commercial KPIs such as crowd sizes, sponsorship revenue etc, financial conditions, and such like. What now seems to be the case is that no such conditions exist in this licensing agreement and that Cox can retain the VIC rugby license at his own whim with no formal recourse to any of Rebels' team or business or such like outcomes that would in principle protect the ARU's interests if the licensee (Cox) did not perform to expectations. This all despite the fact that the ARU was/is itself providing Cox large, multi-year cash subsidies to prop up the Rebels' financial losses.
If (ii) is in fact like that, in all my global deals with multiple licenses and license rights agreements, I have never seen a rights license agreement as dangerously one-sided and thus highly problematic (for the ARU) as this one involving the ARU and Cox appears to be, and Cox is clearly telling the media etc that this is in fact the way it is and, short of him selling his license, the ARU will have to lump the startlingly one-sided terms they have agreed to.