The Corporate Future of Union

[Evie]

Interesting but pretty much what we guessed of it being a way to discredit O'Meara, also Keenan is manager of many other Force players apart from Giteau...

[The EnForcer]

I'm not sure about the conspiracy theory re the East coast guys not wanting O'Meara in charge of the ARU. For a start he is an East coast boy himself, he has close ties with east coast rugby and he's an extremely successful manager who in doing what he has done for The Force has enhanced Australian rugby. I just don't see it. The disgruntled manager line seems a lot more plausible.

What does piss me off is a paper releasing information like this and not being able to back it up. Editors who allow that sort of journalism should have to pay for the consequences.

[shasta]

What does piss me off is a paper releasing information like this and not being able to back it up. Editors who allow that sort of journalism should have to pay for the consequences.

Haven't got the time on my hands to do the leg-work myself right now, but I think it's possible The Force and O'Meara may have been dragged into this more as "collateral damage" than the prime target. I recall the SMH has been trying to get some dirt on Firepower for a fair period of time. Their take on the company seems to be that there has been a lot of money invested and a large share of that doled out on sponsorships in S14, NRL, AFL and overseas with very limited earnings or evidence about the much mooted green technology.

[travelling_gerry]

Haven't got the time on my hands to do the leg-work myself right now, but I think it's possible The Force and O'Meara may have been dragged into this more as "collateral damage" than the prime target. I recall the SMH has been trying to get some dirt on Firepower for a fair period of time. Their take on the company seems to be that there has been a lot of money invested and a large share of that doled out on sponsorships in S14, NRL, AFL and overseas with very limited earnings or evidence about the much mooted green technology.

From the Firepower website.... www.firepowergroup.com


NSW Supreme Court will hear Firepower defamation case

The NSW Supreme Court has given the green light for a jury to hear a defamation case brought by Firepower Chairman Tim Johnston and CEO John Finnin against the Sydney Morning Herald.
The preliminary ruling relates to articles the newspaper published in January, which claimed Firepower marketed a sham technology product and made false claims about its sales success.
Significantly, the Herald argued in court that no such meanings arose from the articles – and it now has until May 17 to prepare its defence.
“It seems the Herald wants to have its cake and eat it,” said CEO John Finnin. “In the articles they are saying the fuel pill is a sham product, but in court they propose to argue they weren’t saying that.
“We’re getting tired of being accused of misrepresentations, when in fact the Herald is misrepresenting us and the nature of our products,” he continued.
“The Firepower organisation is young and growing very fast, so quite naturally is having to manage growth pains. These hostile stories have caused considerable damage to the company’s reputation, especially by focusing attention on one product among a wider range.
“What has inspired interest from shareholders and others is Firepower’s ability to increase fuel efficiency and reduce the pollution for very large fuel users like mining companies and industry and government instrumentalities by providing them with fuel cleaning products and conditioners. The main beneficiaries will be organisations in developing countries plagued by problems associated with low grade or contaminated fuels.”

[Burgs]

Up to May 17 to prepare defence.
May 25 & 26 write more damming stories.....
Does that mean SMH won the case???

[Burgs]

Rugby bosses vow to check payments

Jacquelin Magnay and Gerard Ryle
Monday, May 28, 2007

Allegations of rugby union player contract breaches would be investigated by an independent committee if the Herald released documents it held, the chairman of the Australian Rugby Union, Peter McGrath, said.

The Herald revealed at the weekend that the Western Force chief executive, Peter O'Meara, appeared to have direct knowledge of potential third-party arrangements between some players and sponsors, including the controversial fuel technology company Firepower.

The Western Force used aggressive poaching tactics to attract players to Perth, including cash and shares in third-party deals.

Under Australian Rugby Union rules, no state union can be involved in facilitating, procuring or arranging third-party deals as an inducement to sign any player without its approval.

Yesterday Mr McGrath said the sport's governing body would investigate breaches from any club.

"We are not prepared to ever sweep these breaches under the carpet," he said. "If more evidence comes to us we would receive instructions from the board and then have an independent review."

He said the Australian Rugby Union would be very interested in a document obtained by the Herald that refers to the possibility of tens of thousands of dollars in additional payments to players involving a potential arrangement with Firepower. Mr O'Meara's signature is at the bottom of the document.

The Western Force has already been investigated for its dealings involving the highest-paid player in the game, Matt Giteau, where no evidence of a breach was found, and the Waratahs forward Al Kanaar, where it was fined $110,000.

Western Force chairman Geoff Stooke said in a statement yesterday: "We note the allegations and assertions made by the SMH. Peter O'Meara has confirmed to me that he has always complied with the ARU player contracting protocols of the day with respect to third-party arrangements."

In an earlier interview with the Herald, Mr Stooke said the Western Force was not involved in underwriting third-party deals to lure players to Perth.

As such, the club was not financially exposed to legal ramifications if those deals fell through. It is understood some Western Force players have not been paid some of their third-party sponsorship money.

Last week Mr Stooke said: "We don't underwrite, we never have and we never will underwrite. At no point in time will we ever underwrite a third-party deal."

[Burgs]

Third-party protocols fine for deal

By Bret Harris
May 28, 2007

THE Australian Rugby Union believes Western Force has no case to answer following allegations that it breached third-party payment rules to recruit star back Matt Giteau.

An article in a Sydney newspaper on Saturday accused Force chief executive Peter O'Meara of breaching the ARU recruitment protocols by soliciting fuel technology company Firepower to sponsor Giteau, who is believed to be the highest paid player in the country.

Under ARU rules, teams cannot directly approach companies to sponsor players but deals can be done through player managers. The ARU made an exception to this rule when it allowed New South Wales to pursue third-party sponsors to keep Lote Tuqiri from returning to rugby league because he was a "special case". (certainly is )

An investigation into the Giteau-Firepower deal, conducted by the ARU, found no irregularities

"This matter was dealt with last year," ARU chairman Peter McGrath said.

"We've seen no thing yet to warrant re-opening any investigation. I'm not prepared to act on hearsay.

"If there is any evidence, we'll look at it. We won't sweep it under the carpet. If there is evidence, I guarantee the ARU will deal with it."

O'Meara will raise the issue at the chief executives meeting in Sydney today.

Force chairman Geoff Stooke has vigorously denied the allegations.

"We note the allegations and assertions made by The Sydney Morning Herald," Stooke said.

"Rugby WA chief executive Peter O'Meara has confirmed to me that he has always complied with the ARU player contracting protocols of the day with respect to third party arrangements.

"Accordingly, we are disappointed that the SMH has made a variety of allegations and assertions without substantiating them.

"For the record, we note that Matt Giteau's recruitment by Rugby WA was the subject of an ARU inquiry last year, and the ARU was satisfied that the protocols had been complied with."

[hopep]

Sound like another media beat-up

must be a slow week for rugby news in NSW

[Goldmember]

We should have become a republic in 1933 when Western Australia voted for secession.

[Burgs]

Might have made it a bit tough putting together a "Westralia eligable" Super 14 team though

[Burgs]

Tax Office looks at Force payments

Gerard Ryle and Jacquelin Magnay
Tuesday, May 29, 2007

Side payments of hundreds of thousands of dollars used to woo Wallabies players to the Western Force Super 14 team have been caught up in a broad review by the Australian Taxation Office.

The ATO is investigating whether any of the Western Force sponsor payments in cash and shares have been made through offshore entities in a way that avoids tax.

The ATO is also looking at third-party deals at other Super 14 clubs, the Waratahs, the Brumbies and the Queensland Reds.

Rugby union clubs have been contacted by the ATO since February and asked to provide details of all payments, benefits and services to players by the club or third-party sponsors.

The clubs have been queried about whether they made payments to "other entities or associates" at the direction of players, and asked for all documentation outlining player remunerations.

The Super 14 clubs, which the ATO has targeted along with some other sportspersons, have been encouraged to volunteer potential tax avoidance issues in return for lower penalties.

Club officials have had to provide information about all benefits to managers, players and their relatives in relation to tickets, vehicles, housing, loan agreements or prepaid salary deals, family travel, player awards and payments to relatives or parties associated with the player.

Cash payments have had to be declared, as well as any post-career payments as part of a player's current salary, player fines and player management fees.

Western Force executives will also be asked to provide more information about player payment protocols during a meeting today of Australian Rugby Union chief executives. The ARU has indicated it will convene an independent committee if the Herald releases documents.

The ARU looked at the Matt Giteau contract last year and found no breaches, but an ARU inquiry into the club's alleged negotiations with the Waratahs forward Al Kanaar, who was seen at a Western Force game, led to a $110,000 fine last May. In an appeal in June, the fine was reduced and part of it suspended.

The Herald reported on Saturday that several cash and share inducements, some involving the controversial Perth fuel technology company Firepower (who, as earlier pointed out, just happen to have had legal proceedings with the SMH), were used to lure a number of Wallabies players to the Western Force. However, some of the arrangements seem to have problems. Some bills have allegedly not been paid on time. Some players are understood to be owed tens of thousands of dollars.

The ARU has long been concerned about whether or not the arrangements are in breach of rules that limit how teams can poach players.

Under the ARU protocols, no state union is to be involved in facilitating, procuring or arranging third-party deals as an inducement to sign any player without ARU approval.

Documents seen by the Herald refer to the possibility of tens of thousands of dollars in additional payments to players involving a potential arrangement with Firepower.

The signature of the Western Force CEO, Peter O'Meara, appears at the bottom of one document.

But O'Meara, who has been interviewed for the vacant job of ARU chief executive, said he had no knowledge of any third-party deals. He said players and their agents dealt directly with the third-party sponsors with no input from the Western Force.

O'Meara told reporters in Western Australia that some people were "initiating some action scurrilously".

"I have been interviewed for that role [of ARU chief executive], and there may be people and forces on the east coast of Australia who don't want to see me succeed in that, who knows," O'Meara said.

Firepower chairman Tim Johnston issued a statement supporting O'Meara. "Peter O'Meara is a rugby administrator of the highest calibre. The Western Force's rise is a testament to this."

In response to allegations raised by the Herald, Johnston said: "Firepower does not discuss player payments, believing that individual's incomes are confidential. Disclosing player payments is completely inappropriate."

An ATO spokeswoman declined to comment on specific aspects of the tax review, other than to say it was "reviewing some professional sportspeople to ensure that income from all sources is declared and only allowable deductions are claimed".

Firepower is also a major sponsor of the Sydney Kings basketball team, the South Sydney Rabbitohs rugby league team, the Tongan national rugby union team, the Porsche Carrera Cup motor sport series and V8 Supercar racing.

[AndyS]

I just love the way the article notes "The ATO is also looking at third-party deals at other Super 14 clubs", but only the Force makes the headline. Surely balanced reporting would be Tax Office looks at Rugby payments - same number of letters etc..

[Burgs]

Interesting some of the points raised by a different journalist and newspaper...

Giteau staying west

By Peter Kogoy
May 30, 2007

MATT Giteau has vowed to stay with Western Force and see out the remainder of his multi-million-dollar deal, despite falling out with his manager, Greg Keenan, amid suggestions the deal was tainted.

And yesterday the newest Australian Super 14 team claimed that reports it was under investigation from the Australian Taxation Office for sponsor payments was a misrepresentation.

Giteau disputes the amount of money Keenan is claiming in commission over an alleged third-party deal with Force's sleeve sponsor, the Perth-based fuel technology company, Firepower.

The fracas between player and manager has brought third-party arrangements - the key factors in luring the Wallabies star to Perth from the Brumbies - to the fore.

Giteau has placed the matter in the hands of a lawyer.

"I'm working through some issues with my manager at the moment," Giteau said. "But this won't affect my relationship with the Force."

Sydney-based Keenan last year put in to place a complex deal believed to be worth $4.5 million over three years that took the utility back from Canberra to Perth.

Keenan is in London on business and didn't return phone calls last night.

"If Matt had any issues with his contract or the club, I'd be the first to know," Giteau's father, Ron, said last night.

"It appears as if one (Sydney) newspaper is waging a vendetta against my son in an attempt to destabilise the Force."

Force chairman Geoff Stooke was quick to dispel rumours of friction between Giteau and the fledgling Super 14 team.

"Matt loves (Perth) and the club environment," Stooke said.

"He has shown to be a leader and a superb clubman. But it appears that an issue has arisen between a player manager and the player.

"The club has no issues with Firepower. The company continues to pay its bills and remains a very solid supporter of the Force."

Keenan represents several players under contract to Force.

Stooke yesterday also defended the actions of embattled chief executive Peter O'Meara at the centre of the Giteau affair.

"There are forces out to sully Peter O'Meara's good character and reputation," Stooke said.

"As far as myself and my board is concerned, Peter O'Meara has done nothing wrong. The Australian Rugby Union has investigated the allegations and found nothing wrong.

"I'm as mystified as the next person in relation to the allegations O'Meara had been in breach of the code's self-imposed third-party payment rules in (Giteau's) recruitment.

"And as to the allegations raised in the paper the ATO was investigating the Force, (this) is a misrepresentation of the true picture.

"The ATO sent out a questionnaire back in February this year. It was a standard form that also went out to the other three Super 14 franchises. The Force completed the form and we hadn't heard from the ATO since. I understand a similar form was sent to the ARU and player managers."

O'Meara was in Sydney yesterday to meet ARU officials but the meeting is understood to have been a regular bi-monthly meeting of all Super 14 chief executives and nothing to do with player payment issues.

ARU general manager Pat Wilson reaffirmed last night that Force had no case to answer over allegations it had breached any third-party protocols in the recruitment of Giteau.

"To say the Australian (Taxation) Office had suddenly launched some sort of a special investigation into the club was drawing somewhat of a long bow," Wilson said.

"The ARU along with all Super 14 franchises had received a questionaire from the ATO back in February, and, as far as (the ARU is) concerned, we are treating the matter as a general inquiry."

[hopep]

All this still sounds like a media beat up ... but Firepower has been in an awful lot of those around the world.
Stookie and the Force board may want to think hard before renewing sponsorhip deals. In sport today Image is Everything.

[Eel]

This story is only going to get bigger. I suspect there may be major casualties in this Firepower / Force / O'Meara saga.