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Nick Evans

Perth Bears’ constitution shows Sydney calls the shots; Federal department’s TV spruiker

Nick Evans
Perth Bears chief executive Anthony De Ceglie. Picture: Jonathan Ng
Perth Bears chief executive Anthony De Ceglie. Picture: Jonathan Ng
The Australian Business Network

There’s nothing West Australians hate more than the idea of being told by the east coast what to do.

Witness the annual wrangling between the states about the national GST carve-up, in which WA usually demands back all the money its residents kick into the national coffers – presumably to pay for WA’s own navy and air force, or something like that.

Few would know this better than the former editor of the state’s daily newspaper, Anthony De Ceglie, newly installed as the CEO of NRL expansion team Perth Bears.

That’s why, despite the fact that the club is owned by the (Sydney-based) NRL, he’s been at pains to dismiss any suggestion that the wrong side of the country will have any say in its running.

“Anyone who is in clubland will tell you it’s impossible for the NRL to be running a club,” De Ceglie told a Sydney newspaper this week. “Pretty soon we’ll be over in Perth which can feel like foreign territory.

“Distance will mean that idea is a complete fallacy. We’ll stand on our own two feet.”

Well, maybe.

A quick look at the Perth Bears’ corporate constitution, lodged with ASIC in late May, suggests the NRL will remain firmly in control of the club’s decision-making for some time to come.

Perth Bears head coach Mal Meninga and chief executive Anthony De Ceglie. Picture: Getty Images
Perth Bears head coach Mal Meninga and chief executive Anthony De Ceglie. Picture: Getty Images

It says the Australian Rugby League Commission (ARLC) – the NRL’s parent body – until 2029 retains the right to hire and fire the club’s coach (currently Mal Meninga).

De Ceglie must get ARLC permission before appointing any new members of his executive team, and the commission will also set their wages and contract length.

De Ceglie’s business plan needs to be signed off by Sydney rugby HQ, as will any future sponsorship deals, along with club branding and logos.

So too will the number and names of any new directors – and the ARLC also retains “discretion as to the number of female directors appointed to the company which is anticipated to be not less (x%),” the constitution says.

Margin Call hopes the ARLC is able to settle on an appropriate percentage ahead of the appointment of any new directors to replace founding board members – and NRL stalwarts all – Graham Annesley, Daniel Dressler and Misha Zelinsky.

Now, it is entirely possible the Perth constitution will get a review when local directors are ­appointed.

But the constitution also requires ARLC approval before any changes can be made, so good luck with that.

Branded content?

Taxpayers paying government contractors to tell taxpayers how great a job they are doing – welcome to the world of the federal government’s employment programs.

That appears to be what’s happening over at the Department of Education and Workplace Relations, which is allowing services provider Asuria – which holds about $360m worth of federal contracts to help the unemployed back into work – to run sponsored content on Network 10, spruiking the “life-changing” benefits of starting your own business.

Margin Call came across this oddity courtesy of a breathless press release from Asuria announcing the launch of Start Me Up, a two-part program on Saturday afternoon on 10 “featuring some of Australia’s most inspiring start-up founders and the mentors on a mission to help them ­succeed”.

The program, we’re informed, features participants in the federal government’s Self-Employment Assistance (SEA) program, which offers support, training and advice for people who’d rather try to start their own business than sit on the dole.

“From overcoming personal setbacks to chasing long-held dreams, these entrepreneurs share raw and powerful stories of resilience, reinvention and purpose,” Asuria says.

All very worthy, and small business is the backbone of the Australian economy, as we’ve all heard ad nauseam.

And, to be clear, Margin Call has no problem with spending money to advertise government services – if you don’t know about them, you can’t take advantage of them.

But a closer look at the Asuria release suggests this is as much about promoting the company, majority-owned by Sydney businessman Con Kitto, as the self-employment assistance program.

In addition to the SEA participants, Start Me Up features interviews with the “highly experienced business gurus who are often the secret ingredient when it comes to guiding new business owners through those challenging early years”.

Who do these gurus work for? Asuria, of course.

And who is paying for this? Well, we are, eventually. The department confirmed to Margin Call it pays an “annual service fee” to service providers to promote awareness of the self-employment program, and Asuria confirmed this was paying for Start Me Up’s production.

Almost two dozen other companies got a cut of the $295m on offer in the last round of SEA contracts from the department, and Asuria’s $44.5m slice isn’t even the biggest. Any chance that any of the other providers will cop a mention on the tele?

Margin Call very much doubts it, and we hear the company’s use of the government-approved marketing budget has raised more than a few eyebrows at smaller services providers.

Kitto has boasted that Asuria has revenue worth more than $100m a year, mostly from government contracts.

While Asuria’s SEA contract runs until 2027, we imagine that it’s always good to have some glossy promotional material on hand if you’re on the hunt for new business.

Nick Evans
Nick EvansMargin Call Columnist and Resource Writer

Nick Evans has covered the Australian resources sector since the early days of the mining boom in the late 2000s. He joined The Australian’s business team from The West Australian newspaper’s Canberra bureau, where he covered the defence industry, foreign affairs and national security for two years. Prior to that Nick was The West’s chief mining reporter through the height of the boom and the slowdown that followed.

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Original URL: https://www.theaustralian.com.au/business/margin-call/perth-bears-constitution-shows-sydney-calls-the-shots-federal-departments-tv-spruiker/news-story/44f4fbbca1015ebcb33db83d3520785a