ARU bails out 'bankrupt' Reds
Fri, 05 Mar 2010 12:16
The Australian Rugby Union will provide financial assistance to the Queensland Rugby Union, which is under serious threat of being placed in administration.
In a statement on Friday the QRU confirmed that they had accepted a financial offer from the ARU.
"The Board of the Queensland Rugby met today [Friday] and voted unanimously to accept a proposal from the Australian Rugby Union to assist in finding solutions to financial pressures at QRU," the statement said.
Under the proposal, a five-man Special Executive Committee (SEC) comprising representatives from QRU and ARU, and chaired by ARU Managing Director and CEO John O'Neill, will be established to review and run the business.
The QRU Board has delegated its powers to the SEC.
ARU will provide financial assistance to QRU in the short-term by pre-paying scheduled grants.
"We are grateful that the ARU has been able to agree to our request for assistance and we look forward to working with them to put the ship back on an even keel," said QRU Chairman Rod McCall.
"We will now devote our energies to rebuilding the business to make it economically strong again."
It is not the first time the ARU had to bail out one of its unions on the brink of financial ruin.
A decade ago, the ARU was forced to prop up the then-teetering NSW Rugby Union.
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