The below is an extract (my emphasis added in bold) from a GeoRob article in the SMH Online tonight.
If all or most of it is even vaguely true, it beggars belief as to how the ARU has gotten itself into such a ridiculously exposed situation with the Rebels/Vic Govt, a team that was deemed to be 'fully privatised and thus with removed risks to the ARU' as was declared publicly to the rugby community back in 2015.
I mean, exposures in 2025 FFS to Bled events and such like that, on the way things are going for Aus rugby at present, are likely to be attended by a highly diminished number of patrons at best.
Again, if true, this article confirms that the central reason the Rebels will be preserved has little to do with genuine strategic and commercial risk-reward assessment and objective business merit, but rather centres upon exceedingly poor contractual and guarantee arrangements that (a) the ARU has hitherto hidden from public view and (b) are so large and financially damaging that they cannot be cash afforded if triggered.
.............."In contrast to what ARU chairman Cameron Clyne said during Monday's hour-long media explainer in Sydney about the decision between the Force and Rebels being an open race, RugbyWA representatives described being presented with a fait accompli at a meeting with ARU chief operating officer Rob Clarke and chief financial officer Todd Day that ran to three-and-a-half hours in Perth on Monday.
Geoff Stooke, the Perth-based independent director on the ARU board who offered the only resistance to the four-team decision on Sunday, hinted at the problem on Monday morning, stopping short of calling into question the integrity of the process but saying he was "uncomfortable" with how it was playing out.
RugbyWA sources said Clarke and Day arrived in Perth armed with a detailed breakdown of why the Force - their alliance partner - should be axed ahead of the Rebels, much of it centring around the risk of cutting the Melbourne club posed to a heads of agreement the ARU had entered into with the Victorian Government to host a suite of Bledisloe Cup Tests and a British and Irish Lions Test in 2025.
"What they wanted to present was that the ARU is not in a position to retain the Force, they must retain the Rebels, because the threat offered by the departure of the Rebels was overwhelming," the source said.
"They didn't come over to talk about the alliance agreement, they came over to talk about their evaluation of their own balance sheet and how much trouble they're in."