Andrew Forrest has provided a dramatic twist in the race to chop one of the local Super Rugby teams, throwing his voluble weight and potentially some money behind the case for Perth's Western Force to survive the cut.
But legal issues surrounding the Force's right to stay in the competition may scupper the the billionaire Rich List member's plans. Arbitration hearings this week are set to decide the team's fate and a decision may hinge on legal interpretations of rugby union's broadcast deal with Fox Sports.
And it remains unclear just how much money Forrest, chairman of Fortescue Metals Group, will contribute to the cause. This is in contrast to the Victorian government which has promised a package of up to $14 million to help the Melbourne Rebels and bring top-class rugby union events to Melbourne.
But former Wallaby John Welborn, the chief executive of Perth-based gold producer Resolute Mining, said Forrest's involvement has galvanised the Perth rugby and business community.
"Andrew is such as lightning rod for attention...but he's also a former rugby player with a real passion for the game. It's not just about putting in money, he's been impressed with the team's community plans. The ARU talks about it being a financial issue, but Andrew Forrest has seen the iron ore price go from $180 per tonne to $40 at one stage so he knows how to operate when revenue is falling."
Both the Force and Rebels have been jockeying for survival since Australian Rugby Union chairman and former National Australia Bank boss Cameron Clyne announced on April 9 the governing body would cut one local team.
Clyne and his chief executive Bill Pulver cited financial concerns as the main reason, as well as worries about having enough good Australian players to cover five teams. NSW, Queensland and the Canberra-based Brumbies were guaranteed survival, with one of the Force or Rebels to go.
At various stages since then both the Force and Rebels had individually seemed likely for the chop, but the Force is now seen as the most likely team given its licence to compete in Super Rugby is owned by the ARU (the Rebels' private owners Andrew Cox and Peter Sidwell holds its licence for now) even though the Force has taken legal action to try to survive.
Mediation between the ARU and Force begun in Clayton Utz's Sydney offices on Monday with up to five days set aside for the deliberations.
Arguments hinge on the Force's participation agreement clinched with the ARU when it transferred ownership of the club from Rugby WA to the ARU in early 2016. The agreement has the Force staying in Super Rugby for the term of the current broadcast agreement with Fox Sports. But the ARU argues changes to the competition – including two South African teams leaving next season – means the TV deal has also changed.
But Forrest's public intervention, which began with a rousing post-match speech to the Force playing group circled around him at nib Stadium after its last match of the season against NSW on July 15, could provide another twist.
The Force lodged a prospectus with the corporate regulator earlier this year aiming to raise $10 million from the public in "Own the Force". It was to take a minimum of $5 million and up to $15 million in $1000 allotments per share, and recently extended the deadline for potential investment to November.
Forrest has pledged to match the dollars any investor puts in if they want to pay in instalments rather than the full amount. A $1000 pledge would be funded via a Forrest loan, with repayments made to the Force via direct debit instalments over up to two years.
Meanwhile, the Victorian government and events arm Visit Victoria has thrown its support behind the Rebels and is set to effectively underwrite the transfer of its licence from its private owners to the Victorian Rugby Union. It has threatened the ARU to withdraw wider financial support should the Rebels be chopped.
Players from the Force and Rebels have pragmatically signed contracts with the teams for next season, but also other sides in case either are closed down.
