2
It seems to me that Cox's interests may have been damaged in two ways (at least).
- Financial, reputational, commercial and personal damage to the Rebels brand and to Cox caused by the ARU announcing that the Rebels were at risk of being culled.
- Statements that senior ARU management had, over numerous years, expressed doubts on the financial viability of having five Australian teams in Super Rugby and that "this concern was not conveyed to Imperium Sports Management prior to its acquisition of MRRU despite the full board and management of the ARU having the opportunity to do so".
The remedies for this possible damage could be significantly greater than what the ARU might have been able to offer Cox to buy back the MRRU franchise.
On that second point, Cox should have done his due diligence. Even I - a simple person with no business acumen whatsoever - was able to see from the ARU's published accounts from 2011 onwards that the MRRU was a financial disaster! The $13million owing to the ARU in accumulated loans was a bit of a giveaway I'd have thought!
Proudly Western Australian; Proudly supporting Western Australian rugby
Will we be seeing your investigative report on the big stage soon Alison?
You'd expect that Cox is nobody's dummy and that he knows the importance of a good DD, especially for a complex and high risk business like a sporting team.
So I wonder
- What information was (and was not) visible to his DD team, and
- Is there some form of side letter which indemnifies him against future losses by MRRU?
I would not be at all surprised if it was 2. or a variation of it. The writing off of the loans, plus the $2.6million "special payment" the ARU paid the MRRU in 2016 (on top of its standard SR grant) "as part of the [2015] sale agreement" suggest to me some sort of "for the love of God, PLEASE take this pile of crap of a company off our hands" kind of a deal!!
Proudly Western Australian; Proudly supporting Western Australian rugby
I know the ARU comes across as impossibly incompetent over the whole history of The Rebels. But surely even they could not have been stupid enough to have written off all debt, given the licence away gratis AND THEN indemnified the owner against any future losses. I mean what possible upside could any sane person see in that?
Maybe you're right about Pulver doing his best, and I have no doubt he has a love for the game. BUT he threw his hat in the ring for the highest paid professional position in Australian Rugby. He's accountable. End of story. What is said here is not a lot different to what has been in the ES media. It counts for FA anyway, in comparison.
"The main difference between playing League and Union is that now I get my hangovers on Monday instead of Sunday - Tom David
Does ANYONE ANYWHERE think these charlatans have done a good job over this shamozzle? If not how are they still there pulling outrageous salaries! A private company would have sent them on their way'! They are playing with decent hardworking people's lives for goodness sake!🤑🤑🤑😡😡
Who will represent the Forces's interests at the meeting this week?
Cameron clone or Rob Clarke if management have their way
C'mon the