Super League Pt5
The Eve Of The War Pt4
5) The Meeting
A meeting took place on 30 January 1995 between Messrs Arthurson, Quayle and Moore, on behalf of the League, and Messrs Cowley, David Smith and Lovett, on behalf of News, at the offices of News. The proposal for a Super League was officially presented to the ARL. The key points were,
* There was to be a twelve team competition, with the game's best players. This was to be an integral part of an international competition, with a world-wide audience of tens or even hundreds of millions.
* The existing 20 team competition would continue. The ARL's "pivotal role" would also continue, as it would administer the game. The ARL would run the State competition and Test matches and be responsible for the judiciary, referees and junior development.
* The existing 20 clubs would be shareholders in the licensed, privately owned Super League teams. This would eliminate the problem of breach of players' contracts, since there would be no breach. The 20 club competition would be the "breeding ground for the stars of the future".
* The 12 clubs would be based in Sydney (4), Queensland (2), Newcastle, Canberra, Melbourne, Adelaide, Perth and Auckland.
* The current financial status of the game, despite its success in attracting fans, was a net loss, with the clubs being dependent on subsidies from their associated Leagues clubs. The Super League proposal would allow the clubs to benefit from News' global media network. Super League would make it possible for $100m to be invested in rugby league, thus giving the ARL a "$100m friend".
* There would be a "fully representative Board of Directors", with three Superclub board members and the ARL represented. The chairman of the ARL would be the chairman of Super League.
* Profit distribution between the League and News Ltd was negotiable.
After the meeting had concluded, Mr Cowley asked if he could make a presentation to the clubs. Mr Arthurson responded that, subject to the clubs' agreement, that could be done. Mr Smith said:
"We want the League to support the vision of Super League, to support the concept".
Please note: The ARL's pivotal role would continue. i.e. There role in administering the game would continue. Remember the ARL did not own the game, as private companies were already established with ownership of a team. In esscence SL proposed an entirely new competition, which the existing (unsustainably loss making) 20 team competition would be a feeder for. This was an alternative to the existing ARL plan of a 14 team competition (Bradley Report) which the ARL was already in the process of implementing. In the case of SL however, a solid foundation of finance was to be made available to the League. In terms of FTA, Packer had the rights to the 20 team comp and would have been eligible to bid for the FTA rights to the new 12 team SL.
6) The ARL letter to the clubs
2 February 1995, Mr Quayle, on behalf of the ARL, sent a letter by fax to each club advising that a conference scheduled for 6 February 1995 had been cancelled and inviting the club to send three delegates to a meeting on that day. The letter, so far as relevant, was as follows:
"As you can appreciate this action, after all details for the Conference had been finalised, indicates that serious issues have arisen which require urgent attention. You are no doubt aware that the 'Super League' matter involving News Limited, the League, and Member clubs of the League, has again created a climate of uncertainty, and I must say, some mistrust amongst stakeholders within the League who potentially may be affected by 'Super League'.
Those implications were such that the League now feels that to proceed with a Chief Executives Conference involving the 20 current Clubs within the League would be irresponsible in light of certain aspects of the News Limited offer.
The purpose of the meeting will be to review the outcomes of the previous meeting held on this matter on 14 November 1994 at which the League sought, and all clubs gave, an undertaking of a five (5) year commitment to the existing Premiership structure.
It does seem, however, that in the aftermath of the News Limited meeting that there is considerable doubt regarding the commitment by a number of Clubs to that resolution.
In order that a full and frank discussion can occur, the League has invited the appropriate News Limited representatives to address the meeting so that collectively all Clubs are hearing the same message. Whether that invitation is accepted or not is not known at this time. In any case the League is determined to seek from clubs their position in relation to the 'Super League' proposal and the League role, if any, in that proposal.
So that all Clubs can leave the meeting with some certainty about their future, you are requested to carefully consider your club's position with regard to this potentially most damaging situation.
7)The News Ltd presentation to the clubs.
News Ltd presented the Super League concept to all the clubs representatives.
Mr Cowley reaffirmed the role of the ARL,
"Any role which News was to play in the game would not result in the ARL losing the control and administration of the game ... It is not intended for News to own the game ... News' interest in Superleague is to provide broadcast opportunities, not proprietorship of the game. "
After Mr Cowley and Mr Smith had left the meeting, Mr Arthurson pointed out that a television contract, including pay television, had been entered into with Channel 9 until the year 2000. Mr Arthurson told the meeting:
"The League does not want to be part of the News proposal, we can't accept it. It seems to me that the tactics of News appeared to be to divide and conquer....Our strength has always been our solidarity; the fact that we have always stood firmly beside each other. If we continue to stick together like this no one, not even Rupert Murdoch, will break our game up. The ARL does not want to be a part of the News proposal, and will not accept it."
When the meeting resumed after lunch, Mr Packer addressed the representatives. He told them that the Nine Network had contractual rights until the year 2000, which he expected the ARL and the clubs to honour. Legal action would be taken against any club or person failing to comply with their contractual obligations.
Mr Arthurson then sought from each club a statement of its position, with regard to Super League. The representatives of those clubs that said they had not signed any confidentiality agreement all expressed their commitment to and support for the ARL. Mr Morgan of the Brisbane Broncos said that his club had signed a confidentiality agreement with News, but had stipulated that the club would only play in a competition owned by the ARL. Mr Neil of Canberra and Mr Lawler of Newcastle said much the same thing, each stating that his club would remain loyal to the League. Mr Puddy of the Western Reds said that a confidentiality agreement had been signed by his club, but that it wholeheartedly supported the ARL.
Mr Arthurson responded as follows:
"Well, thank you gentlemen for that unanimous pledge of loyalty to the ARL and your commitment not to join a Super League of any description. I would like Colin Love [the League's solicitor] to say a few words to you in relation to further actions which may be necessary following your unanimous support given to the concept of the ARL controlled competition."
The League's solicitor, Mr Love, then addressed the meeting as follows:
"You will recall that in November last you all signed an agreement to remain loyal to the League for the next five years. Our view is that this agreement will withstand any legal challenge and in that view we are supported by the opinion of senior counsel. It seems to us however, that for more abundant caution it would be advisable to have the clubs sign a further agreement pledging loyalty to the League, which supplements and supports the original document."
Mr Arthurson then said:
"Once everybody has signed this Agreement that Colin has referred to, there will not be any doubt about anybody's loyalty to the League and indeed if there is any doubt about anyone's loyalty they ought not to be part of the League."
A motion was then moved and seconded as follows: "That it be recommended to the Board of Directors of the League that any clubs not signing the new Agreement by 9 am on 8 February 1995, or in the case of the Western Reds by 9 am on Thursday 9 February 1995 be expelled from the 1995 competition."
This motion was carried unanimously. A further motion was moved that no negotiations with News be undertaken by any club in relation to Super League. Mr Arthurson indicated to the meeting that this motion was unnecessary, having regard to the resolution already passed.
Immediately after the meeting closed, the board of the League held a meeting. The board resolved not to accept the resolution passed at the meeting. The board also resolved to seek legal advice regarding the action that might be taken against clubs which did not sign the new agreement by the due date and time.
Between the closure of the meeting with the clubs and before the board meeting, Mr Arthurson telephoned Mr Cowley and told him that the clubs had unanimously rejected the proposal put by News.