ARU chairman Cameron Clyne defends Western Force axing amid concerns about Rebels deal

EXPLOSIVE allegations regarding the deal between the ARU and former Melbourne Rebels private owner Andrew Cox have been made at a senate inquiry.

ARU chairman Cameron Clyne and former Melbourne Rebels owner Andrew Cox.

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A TERSE senate inquiry has raised major concerns with the ARU’s deal to sell the Melbourne Rebels licence to businessman Andrew Cox, with ARU chairman Cameron Clyne strongly defending the axing of the Western Force.

Clyne appeared at the hearing in Canberra last night and was grilled by West Australian senator Linda Reynolds, who called for the inquiry into Australian rugby’s future.

Reynolds last night raised explosive allegations Cox’s Imperium Sports Group — which purchased the Rebels licence for $1 — used millions of dollars of ARU grants to pay themselves lavish management fees instead of putting that money into the Rebels.

“We are of the understanding that that contract made no reference to all of those additional $5.5 to $6 million worth of extra grants, over and above every other Super Rugby team, that there was no conditions on it,” Reynolds said.

ARU chairman Cameron Clyne (left) has defended the process. Picture: AFP

“So if Mr Cox had wanted to take all of that money, and we understand a lot of that money went out to his various companies, you’ve got no concern that there wasn’t even a condition in the contract that that money had to be tied for rugby purposes?

“If you had a look at their books, they’ve paid themselves in consultancy fees more than they were paying the players and staff combined, so that didn’t raise alarm bells?”

Clyne responded: “I don’t know the ins and outs of what was occurring, we did due diligence on the assessment, we looked at their financials.

“The reality is they’re a commercial entity, they had to make a decision with regard to how to run the game, and we oversaw an element of financials. The financial cost to the Rebels was very unfortunate, as was the cost to many other teams.

Andrew Cox (right) with England cricket legend Ian Botham. Picture: Getty Images

“The issue we had to make was how do we draw a line under this and how do we have four teams going forward?”

The ARU announced earlier this year they would be axing the Force from Super Rugby, and after two unsuccessful court appeals they were folded.

But concerns have been raised about the ARU’s alleged preferential treatment of the Rebels, the other team in consideration for the chop.

In the end, Cox exercised a put-option in his contract, allowing him to sell the licence to Victorian Rugby Union for $1, thereby ending any avenue the ARU had of axing them.

The ARU had rescued the Force from insolvency by taking over their finances and chose to scrap the Perth club.

Originally published as ARU chairman Cameron Clyne defends Western Force axing amid concerns about Rebels deal