T
TOCC
Guest
The ARU literally did the deal because the 5 teams were unsustainable for them
Cox didn't buy 5 teams though, he bought into 1 of them and as long as the cash flow promised by the ARU continues to flow (and I've seen no suggestion that it won't?) Then his investment is as "sustainable" as it's ever been.
Cox has them over a barrell, but it's cause he an asset that the ARU now want. Nothing to do with any comments
ARU doesn't own 5 teams, never has, what they have is a contractual obligation to SANZAAR to provide 5 teams, they also represent the body which distributes the broadcast rights for those 5 teams. If 5 teams was unsustainable they should never have engaged into a contract to sell the only one they owned.
The whole issue is that the ARU sold the Rebels to Andrew Cox in June 2015, less then 24 months ago, and only 12months before the first concerns were raised about the feasibility of the new tournament. The ARU didn't just sell a team, they sold a body which represents Rugby Union in the state of Victoria, if there any concerns about the ongoing feasibility of Australia hosting 5 teams then it should have been raised at the point of sale.
Lets say, the ARU were unaware that 5 teams were unsustainable, that as far as they knew it was a sustainable model. Well thats nothing more then wilful ignorance, as the governing body of the code they should be conducting their own due diligence, establishing a business case and having outside firms provide input to the feasibility. The ARU have let down the code through their own mismanagement.
Andrew Cox isn't the villain here, its the idiots who agreed to this new contract to start with.