Power play for AOC control escalates
THE toxic battle for control of Australia’s Olympic movement has intensified, with revelations the AOC paid $6.4m in commissions to sponsorship agencies in the Rio lead-up, almost a third of the amount spent on the team.
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THE toxic battle for control of Australia’s Olympic movement has intensified, with revelations the AOC paid $6.4 million in commissions to sponsorship agencies in the lead-up to the Rio Games — almost a third of the amount spent on the team.
The Australian Olympic Committee outlaid the fortune in commissions to agencies, including in-house agency Lagadere Sports, from earnings of $49.6 million in sponsorship, licensing and online advertising from 2013-16.
In the same period, the AOC allocated $19.9 million to the summer Olympic team, which slumped to 10th on the medal table — its lowest finish since Barcelona in 1992.
The controversial seven-figure payments have emerged as the increasingly bitter showdown between veteran AOC president John Coates and rival Danni Roche enters its final lap ahead of next month’s historic presidency vote.
The Herald Sun can also reveal the Turnbull Government favours 1996 hockey gold medallist Roche, a significant development in the high-stakes face-off.
Senior government sources have revealed that the government was “fully aware” that its decision last month to reappoint Australian Sports Commission chairman John Wylie — Coates’ arch enemy — would spark a direct challenge to the AOC president’s authority.
It’s understood no Cabinet minister spoke against the reappointment, despite being advised of the domino effect.
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A source said while the Turnbull Government did not want to directly intervene in the fight, there were grave fears that Coates would engineer a handover to former Labor senator and powerbroker Mark Arbib, who is also head of Athletics Australia, and further politicise the AOC.
“John Wylie’s appointment was totally on merit and because he has done an excellent job,” a source said.
“But everyone was well aware that it would likely bring on a challenge to Coates.
“That’s now up to them to sort out.”
Another government source said Coates had long been viewed as of the “hard Labor” and it was not in the interest of Australian athletes that the position be politicised.
Marketing and sponsorship outfit Lagardere Sports now operates out of the AOC’s plush Sydney offices under the direction of Michael Bushell.
It’s believed Lagardere received the bulk of the $6.4 million in commissions for helping to raise sponsorship. Bushell was given the AOC’s order of merit award in 2010 and praised by Coates for his fundraising.
Coates again singled out Lagardere in the AOC’s 2015-16 annual report. “Never before has the AOC been so well positioned with so many long-term sponsors,” he said.
“I thank Lagardere Sports for achieving these results and the commercial services they provide in managing our sponsor relations, including since early 2015 by relocating their sponsor servicing personnel to the AOC’s Sydney office.”
Coates last week attempted to justify his $729,000 fee saying: “If you look at the amount I am paid, I do largely the marketing on the AOC’s side, the interaction with the marketing agent and the International Olympic Committee.
“I liaise with the IOC on the big items, I absolutely supervise the legal side. I draft the programming and funding guidelines.”
Coates challenger Danni Roche has promised to slash the presidential payment to $100,000 and conduct a “line-by-line” audit of expenses.
The 1996 gold medallist has vowed to ensure every dollar possible is redirected from bloated administration to athletes and underfunded sports.
The AOC last year paid its executive $2.7 million, an increase of about $500,000 on 2015. Among the high earners were CEO Fiona de Jong ($552,377, including separation benefits), media director Mike Tancred ($330,000) and senior figures Anthony Soulsby ($294,757), Sue O’Donnell ($233,357), James Edwards ($246,375) and Kitty Chiller ($112,000). De Jong has left, amid reports of a falling-out.
A senior government figure said: “Danni is viewed as independent — she would give the government of the day hell in the interest of the sports and the athletes.”
The Turnbull Government was preparing to reappoint Wylie as ASC chair prior to Greg Hunt’s appointment as Sport Minister in January. Mr Hunt brought forward the reappointment to ensure Wylie would oversee reforms to the ASC and not distract from the lead-up to next year’s Commonwealth Games.
SECRET BALLOT KEY TO AOC PRESIDENCY RACE RESULT
DANNI Roche says a secret ballot is vital for “free and fair” elections as tensions rise ahead of next month’s vote to decide the Australian Olympic Committee presidency.
The first challenger to John Coates in 27 years, Roche is increasingly heartened by responses from the 40 summer and winter Olympic sports who will largely shape the vote.
“The many sports I have spoken to are taking this election very seriously and value their vote,” Roche said.
“A secret ballot is an important part of free and fair elections, including for the Australian Olympic Committee. This election should be a positive, empowering experience for all sports and all candidates.”
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Roche supporters believe the secret paper ballot is the former hockey star’s best chance of unseating Coates, who is also an International Olympic Committee vice-president.
International auditing company EY — which has established links to the IOC and AOC — has been engaged as ballot scrutineer.
The ballot will take place on May 6, when elections will be held for the presidency, vice-presidency and board.
While 66-year-old Coates will attempt to defeat Roche and earn another four-year term, senior AOC figures Ian Chesterman, Helen Brownlee and Andrew Plympton will vie for two positions as vice-presidents.
Coates has privately made clear his preferences by forming a ticket of seven favoured candidates, some of whom might not reciprocate his support.
The Herald Sun understands hockey champion Rechelle Hawkes, current board member and Olympic swimming medallist Nicole Livingstone, diver Michael Murphy and canoeist Danielle Woodward are not on his ticket.
Coates is believed to be positioning former ALP federal politician and Athletics Australia president Mark Arbib as his potential successor. Rio de Janeiro chef de mission Kitty Chiller, Matt Allen, Craig Carracher, Tracey Gaudry, David Hynes and Evelyn Halls are also rumoured to be among those earmarked for positions by Coates.
But Allen (sailing) and Gaudry (cycling) are uncertain of returning the favour at the ballot box.
It is believed Roche has received strong feedback after her vow to direct an extra $3 million towards underfunded athletes.
Currently, the AOC provides an average of $18,300 a year to sports which receive less than $100,000 a year from the federal government.
Ms Roche promises to use savings from Mr Coates’ $750,000 consultancy fund to boost support to $50,000.
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