Non-compete clause rejected by News Limited
Stuart Honeysett
From: The Australian
September 10, 2011 12:00AM
NEWS Limited chief executive and chairman John Hartigan is confident the independent commission will hit its target implementation date of November 1, but says there is no way the media giant will ever compromise itself by signing off on a non-compete clause.
The game's inaugural eight commissioners have already held an informal get-together and are planning to take over the running of the game in November providing the current owners News Limited (publisher of The Weekend Australian) and the Australian Rugby League can agree to terms.
Twenety sticking points are holding up proceedings, with one of the major foils being a demand from NRL club chairmen for News Limited to sign off on a non-compete clause so it can never again attempt to form a breakaway competition as it did with Super League.
"We have a position," Hartigan said yesterday.
"If they expect us to say that we're not going to do all sorts of things - last time I looked, this is a democracy.
"It's open to entrepreneurs to bring about competition.
"Does that mean we're going to start a Super League? Absolutely no, it doesn't. But we're not going to just waive our rights."
It has been reported that News has offered to sign a non-compete clause for five years as a way of resolving the impasse and the clubs have baulked at signing a members' agreement to play in next year's competition until the media company complies with their request.
The NRL is hopeful that the clubs will still sign a one-year agreement giving the commission time to assume office and that the matter can be resolved within six weeks.
Hartigan said he remained confident both parties would be able to resolve their differences by the November 1 deadline, but the important thing was the commission be up and running before the start of the 2012 season.
"If we don't it won't be for a lack of our willingness," Hartigan said.
"There certainly are some points that will take considerable time. Let's maintain an air of confidence and say yes, but if we don't, is it the worse thing in the world? Possibly not.
"As long as it's wrapped up well and truly before the start of next season."
NRL chief executive David Gallop provided a state of the game report this week before declaring the code in the best shape it has ever been.
Hartigan praised Gallop as an administrator - the tenure of his position once the commission takes place has been another sticking point between the two parties - and that it would inherit a healthy product.
"I think David is a great administrator," Hartigan said.
"He's got actively the most difficult role in the country other than the Prime Minister.
"If you look at what's been thrown at it - everything but the kitchen sink - and yet the television figures are very, very strong, there's a hole in some of the crowd attendances but by and large the incoming commissioners have been handed something that's in surprising good health."
The commission will tackle a number of issues including the next broadcast deal, the collective bargaining agreement, the salary cap and expansion. On the final point, Hartigan said it was more important to maintain the financial health of the existing clubs.
