5 December 2017

ASIC must investigate latest Rugby Australia evidence

WA Liberal Senator Linda Reynolds is calling on the Australian Securities and Investments Commission to launch an investigation into transactions involving the Melbourne Rebels’ licence.

Senator Reynolds wrote to ASIC after media reports uncovered information regarding the transactions that directly contradicted evidence Rugby Australia, formerly Australian Rugby Union, gave to the Senate Inquiry into the Future of Rugby Union in Australia.

“Rugby Australia Chairman Cameron Clyne told the Senate Standing Committee on Community Affairs on October 16 that there ‘was a very real option that both teams were being considered right through until August,’” Senator Reynolds said.

“However, according to media reports published this week Rugby Australia had direct involvement in negotiating the ‘put option’ between Imperium Sports Management and Victorian Rugby Union as evidenced in an email dated 11 July 2017. It was this ‘put option’ that prevented Rugby Australia from axing the Rebels, leaving just the Western Force.”

Senator Reynolds said she was also concerned about new evidence relating to Bidco, a consortium established by Alan Winney which included members of the Victorian business and sporting community.

“Evidence was provided to the committee in relation to the procurement of the Melbourne Rebels licence by Imperium Sports Management in 2015,” Senator Reynolds said.

“According to Mr Winney’s submission to the committee on 24 October, Bidco submitted an offer to Rugby Australia on 18 July 2014, after which a counter offer was received on 22 July 2014. That offer would have seen the Winney Consortium buy the rebels from the ARU for $100 and then recapitalise the club with $6 million in new equity.

“While much of the detail surrounding Imperium Sports Management’s procurement of the Melbourne Rebels licence remains confidential, publically available information suggests the terms put forward by Bidco would have resulted in a significantly different financial outcome for both Rugby Australia and the Rebels franchise.

“I understand Mr Winney’s proposal would not have forced Rugby Australia to inject any additional payments into the Melbourne, but the committee noted a number of transactions relating to the Melbourne Rebels, the process that resulted in the Imperium Sports Management acquisition, and the exercise of the put option this year. I believe an investigation into these transactions is the only way to clarify these matters, which have been beyond the purview of the Senate Inquiry.”

The committee tabled its report into the Future of Rugby Union in Australia on November 15. The report included recommendations for ASIC to consider the evidence provided to the committee, and to examine whether Rugby Australia’s Board’s conduct and the evidence provided to the committee, in particular, the financial circumstances reported in its annual reports, suggest any breaches of fiduciary duties or any other breaches of the Corporations Act 2001.

Media Contact: Amy Blom 08 9477 5411, 0431 685 372 or amy.blom@aph.gov.au