Funding blow for Melbourne

Investors pull out over dispute with ARU

By Rachel Griffiths   Last updated: 29th December 2009   Subscribe to RSS Feed

Funding blow for Melbourne

Cheika: Was lined up to coach Melbourne

The ARU are trying to get us to start it up without any start-up costs and at a reduced income stream

Ray Evans
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Melbourne's new Super 15 franchise has been left in disarray after the proposed investors pulled out due to a dispute with the Australian Rugby Union over funding.

Spokesman Ray Evans has revealed that members of the VicSuper15 group, who were involved in the winning bid for the new licence in the expanded Super 15 competition which gets underway in 2011, have "ceased negotiations" with the ARU.

Evans said Heineken Cup-winning Australian coach Michael Cheika had been lined up by the group to coach Melbourne and "possibly (Wallaby skipper) Rocky Elsom", but was uncertain if that would now go ahead.

One of the main backers of the franchise, mining tycoon Kevin Maloney, is among those to walk away from the operation, saying it isn't feasible.

The parties reached a stalemate over funding, with the ARU refusing to match an annual grant of $4.2million to the existing Australia Super Rugby clubs despite being expected to earn significantly more money from the Super 15.

The Melbourne side was set to be the first privately-funded franchise in contrast to traditional state-owned Super Rugby teams.

Sticking point

"They won't provide parity so we've basically said it's not commercial," Evans told AAP.

"They're going to set it up now and hope that somebody's going to pay for it and make money out of it, I don't know how they're going to make it work.

"That's the major sticking point, that they weren't prepared to provide the same amount of TV rights as the other states."

Evans believes the ARU should follow the lead of the AFL, who are providing substantial financial and player concessions for the launch of new franchises Gold Coast and West Sydney.

"The ARU are trying to get us to start it up without any start-up costs and at a reduced income stream," added Evans.

"We had a coach lined up, we had Michael Cheika lined up to come from Leinster and probably Rocky Elsom, I don't know what's going to happen now."

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