JON’s Echo of Success

Scott Bryant June 13, 2012 39

No GravatarLast week certainly started poorly for ARU commander-in-chief John O’Neill, but by the end of it he’d come up smelling of roses after a decent Wallabies romp against the Taffs, and the news that he’d been appointed as acting Chairman for domestic casino behemoth, Echo Entertainment.

It continues a golden run for JON that started when he was appointed to the Board of Directors of Rugby World Cup LTD earlier this year.

Packer's Whacker

The news of JON’s appointment came amid a corporate pissing comp between James Packer’s Crown Ltd and previous Echo chairman John Story, after Story refused Packer’s request to have former Victorian Premier Jeff Kennett installed on the Echo board.

Crown Ltd owns 10 per cent of Echo and is reportedly keen to up this stake to exert greater control over the gaming giant and gain access to the vital Sydney casino and tourism market.

Packer might face some troubles in achieving this goal as a challenger has emerged in the form of Singapore casino operator Genting. Not to be outdone, Echo’s second largest shareholder, the fund manager Perpetual, is also spoiling for a fight.

So just how did our man JON find himself in the middle of a three-cornered contest in a battle for a very tasty and very expensive slice of Australia’s casino pie?

'I made him an offer he couldn't refuse'

While the details are unclear, what is clear is that behind the scenes numbers-man, and former Labor Senator, Mark Arbib was heavily involved. That’s the same Mark Arbib who has been announced to lead the ARU’s review into its governance structure.

Arbib was recently employed by James Packer’s private company, Consolidated Press Holdings, to influence Echo Entertainment to accept Kennett on its board and also oust  Story.  James Packer said of Arbib after his appointment, ‘He’s someone I like very much and I believe he will be helpful with our ambitions for Echo.’

Such a statement raises questions about the independence of the ARU’s governance review, in light of JON’s now being both acting Chairman of Echo and Managing Director and CEO of the ARU.

From a governance point of view, it simply doesn’t pass muster.

While it’s totally appropriate for JON to go off and do whatever he likes outside of his ARU duties, his connection with Arbib in relation to his appointment at Echo no longer makes it appropriate for Arbib to continue the review at the ARU. Arbib should step aside immediately.

It has long been acknowledged that the ARU isn’t the most open and transparent of organisations so we as stakeholders deserve better than to have a review that has its integrity called into question before it’s even under way.

Echo’s annual report shows JON collected about $200,000 last financial year as a non-executive director. He will be set to take home substantially more after his move up the greasy pole.

'Chardonnay anyone? My shout!'

Of concern for us average rugby punters is that with the increase in salary, there will also be an increase in the amount of time he will need to spend looking after Echo — time that he will no longer be dedicating to rugby. With all the problems facing Australian rugby’s leaky boat at the moment, we need all available hands manning the bilge pumps, not across town wining and dining waging war on behalf of other corporations’ shareholders.

There are plenty of things in Australian rugby that require attention and need strong and dedicated leadership to sort out. A third tier rugby competition, the financial state of the game and the current Wallabies coaching malaise are a few that spring to mind.

With the ARU losing so badly both on and off the field at the moment, we need people with total focus on the job at hand to put things right, not people with one eye on a boardroom across town and the other eye on the end of 2013.

Discussion »

  • suckerforred

    Does anyone else get the distinct feeling the JO’N doesn’t give a stuff about rugby in this country any more?

    “With the ARU losing so badly both on and off the field at the moment, we need people with total focus on the job at hand to put things right, not people with one eye on a boardroom across town and the other eye on the end of 2013.”

    Hear hear. My other concern about this whole mess is the apparent implied association of rugby with gambling. I don’t give a flying f&^% if people gamble their hard earned dollars away, but in an environment where betting scandels are becoming more frequent (NRL & cricket) & our politicians are debating changes to legislation in an attempt to save people from themselves, do we really want to be anywhere near it? I know it is not necessarily so, but in good concious where would JO’N land on a debate (or where does he) on betting on the game?

    Maybe G&GR should nominate someone for the board and start campaining. Gagger do you want to move back to Oz?

    • jay-c

      do you have any memory what JON did in his previous time as CEO? think RWC 1999, Lions tour 2002 and RWC2003 every single one of these an amazing success
      Do you have any memory of what happened in the period after he left? aru basically blew the surplus millions generated during his time
      do you have any idea the difference he has made since he has come back?
      think about how much southern hemisphere rugby favours australia and this is because we have a far superior ceos than sa and nz (notice how much they complain now JONS done the deals)
      He has turned around a failing organisation by making the hard decisions that others wouldnt
      australian rugby is in a strong position now almost singlehandedly because of JON
      really pisses me off to see people bag this guy considering the position we are in now

      • Patrick

        All of that in relation to JO’Ns past and current achievements is true and I agree absolutely that he has bent RSA and NZ over multiple times. Then again, NZ simply concentrated their energies better and their reaming of IRB arguably got them a World Cup (got it played at home just because they ‘deserved it’ for being unable to get their shit together the first time around – and there JO’N played a role as well!) and helped Bryce Lawrence remain a professional ref, let’s not even get into Paddy O’Brien).

        However that is arguably just as strong an argument for Mortlock to be starting for the Wallabies too.

        I do think that the actual strength of rugby in Australia has received a lot less attention than reaming other countries, and to our detriment. We should be able to have more foreign players, the ARU should be supporting the weaker clubs to pay players more, they need to develop a real third tier, and they need to get their shit together in the schools.

        I’ve suggested John Howard above but Andrew Demetriou could also be a very good CEO.

        I

      • The Other Dave

        Lions tour and RWC 1999 had more to do with the fact that we had a number of once-in-a-generation players (e.g. Eales, Gregan, Horan) and a solid defence (mind you, we very nearly lost that Lions series). In fact, if NZ had kept their shit together regarding the ‘clean’ stadiums, RWC 2003 would have still been played on both sides of the Tasman.

        As for the position we are in now? The Scotland test wasn’t televised on FTA TV until after the Queen’s Jubilee, and while the Rebels may well prove a very valuable asset, the means in which they came about were a little less than ideal.

  • muffy

    Agree sucker, but sadly the corporate old school tie is an integral part of Aussie rugby.

    The most successful rugby countries, NZ and SA don’t have tthat old boy influence, and until we get rid of it, rugby will always be seen as elitist and that will always keep us somewhere below synchronized swimming in pecking order of things.

    No disrespect to synchronized swimming, they always look so happy..

    • suckerforred

      And unless we start bitchen and making some noise the ‘corporate old school tie’ mentality is not going to change.

      As a person that has been told twice in the last 12 mths that my opinions and views are not appreciated by the ARU then I figure I must be doing something right. Just need very one else to start speaking out as well.

      Why can’t they learn the lessons from the QRU of recent times?

      • RJ

        I dont know about you, but i actually quite like going to a rugby match and not having bogans punching eachothers lights out and 50 year old women making me blush with their colourful language, or young girls pissing in the seats and posting it on youtube.

        I say, lets throw on a pair on chino’s, a ralph lauren button up and some good olde RM.Williams and head down to ballymore for some rugby union.

        • suckerforred

          You can still miss out on those particular qualitiers RJ and have someone other then the old school tie brigade running the show. But then again I am sure you know that. :)

        • muffy

          I am suggesting we are swung too far to one side, we need to get back to the centre a bit more..

          I hate Bogans and Mungos just as much as the chap in the RMs next to me…turns out it’s my son…but I coach and ref at teenage level, and we lose hundreds of good kids and families every year because they go to state schools and are then lost in the system..or worse still they go to GPS schools where the schools think they own the kids, take them out of the clubs that taught them the game in the first place live off the reflected glory and abandon them once they leave school, only to reclaim them when they reach higher honours… the clubs and teenage comp in the mean time struggles and or folds as a result.

          I know this will not endear me to many who have come through this system, let me assure you, I am ex private school and so are my kids, but the current arrangement is not really working now is it?

        • The Other Dave

          Re: the old school tie thing, a big chunk of the 1999 RWC squad came from non-GPS/St Edmunds schools: Horan, Eales, Herbert, Kefu, Crowley, Connors… I’m not suggesting we turn our backs on our traditional heartlands, but at the same time, we need to make a really good fist of developing talent in places like Parramatta, Penrith, Ipswich, Logan, Joondalup and Rockingham.

  • Ian

    Yep, time for a change I think. Thanks for the memories JON, whose next?

    • Patrick

      We should push for John Howard. He’s got time, he’s got the network and connections, he loves the game…

      • Drop kick

        The reason he has the time is because no one wants him. No more john’s please.

        • RJ

          dislike drop kick’s comment. lets get the messiah working for our code. he can do no wrong

        • jimmy

          No one wants him??

          His book is a best seller and there are dozens of organisations who want him.

          He was supposed to join the ICC but was rejected because he stood upto Mugabe and Co and the weak as piss ANC were forced to back them.

          And, as we know, turns out he was spot on.

          Give Johnny a go!!

        • Garry

          …and as sneaky as a sh*t house rat? Perfect for such a job.

      • @ro_wine

        I agree, lets upgrade John Howard from a wallaby tracksuit to a wallaby blazer.

        • Garry

          Do they make them in children sizes?

        • Patrick

          He is 6.1′, how big are your kids? (Actually, ok, a while ago when I was coaching U16s it seemed like half the team was over 6′ !!)

  • Blinky Bill of Bellingen

    Off track I know. But..anyone know what kind of sunglasses those are that JON is wearing?

    My old Ray Ban aviators have had it and I’m in need of something to make me seem more credible. Plus of course people can’t see me winking when I make wild claims.

    • http://www.greenandgoldrugby.com/prize-comp-predict-the-score-3n-game-1/ Taste The Radness

      Ambervision, check out these bad boys:

      http://www.youtube.com/watch?v=7mOPbWNHPQM

      • Blinky Bill of Bellingen

        Ha………yeah right. ;)

    • NB

      I can’t believe I know this, but they look like a pair of Persol 649 to me.

      • Blinky Bill of Bellingen

        Thanks for the lead. ;)

    • Garry

      ” Off track I know. But..anyone know what kind of sunglasses those are that JON is wearing?”

      CD’s.

      Not Christian Diors, …. Chardy’s

    • bill

      men in black, raybans do make some nice sunnies.

  • http://Itiswhatitis It is what it is

    Just like Elvis, John has left the building.

  • RedsHappy

    The truly staggering thing is all this is that, right bang in the middle of the rugby season, and when the ARU has deemed it highly important we win a Bled this year and move to IRB No 1 ranking, etc, the ARU board has permitted its CEO to undertake what is manifestly a very time consuming senior role in an embattled public company needing to raise new capital.

    Such a company by definition requires material amounts of a Chairman’s time and attention, it’s inescapably the case. Any sound board carefully reviews and approves its CEO’s engagements outside his full-time (and in this case, highly paid) role. And so they should, the company is funding a CEO to focus all of his or her energies upon the company’s needs. It’s not a 3/4 time job with Fridays to spend on hobbies or other businesses.

    The impression created with this Echo appointment is one of either (a) JO’N effectively controlling his ARU board (which would be entirely inappropriate) or (b) the board is supine, casual and overly indulgent of its CEO’s wishes as to his personal time allocation irrespective of the pressing needs of running our code in this country.

  • john de oniel

    How sky high does this all stink.

    If we won the RWC, maybe cut him some slack, but knowingly taking on the chairmanship of a company that *may* be under takeover offer for the rest of the year, whilst rugby in Oz is in flegdling expansion and underperforming…..???

    I think the CEO gig has to go. Next….

  • @ro_wine

    Given that two former Wallabies from RWC99 are on the board, I wonder if the drinking game from that era still applies? That is, after any game if JO’N hugs you, you must skull!!!!

  • skip

    G&GR. the sand in big john’s speedos.

    • http://www.greenandgoldrugby.com/ Matt Rowley (Gagger)

      Was wondering where the talcum powder came from

  • Jimbo81

    Why would a rugby man have any involvement at all with anyone even remotely connected with the ALP?

  • TerribleTowel

    Pocock for CEO

  • nowared

    You can forget what you think O’Neil has achieved previously – this happening now and that is there is a serious lack of integrity with regard to the review of the ARU – O’Neil is in bed with Arbib (a colorful character to say the least ) and Arbib is in bed with Packer and O’neil has the plum job at the Casino – do you really think the review will be impartial and what is really required by the ARU.

    or do think O’neil is just a little naive — come on everyone wake up and start emailing the ARU with request that Arbib stand aside

  • The Other Dave

    Wait a second here, good rugby folks. We saw Arbib’s work within the Labor party, surely the allarm bells were ringing inside our heads when he was appointed! You couldn’t trust this guy as far as you could throw him! He is part of the cancer that’s killing good governance in this country.

  • bill

    Always thought associating rugby with betting was basically criminal.Don’t really know what else to say, it’s a f*ing naked disgrace they’ve aligned themselves with those cunts, Find another stream of revenue you weak fuckers.

    No sport should be allowed to profit from exploitation , which is what gambling is. If you’re going to allow that , then throw open the doors baby, let’s see performance enhancing drugs in, 12 foot robot fucking chickens in. Not much difference.

  • johnny-boy

    John Howard 6’1″ ? I don’t think so Patrick. He’s taller than Hawkey but not by much.
    I think we are seeing more and more ex players in admin roles in rugby because they were all ‘victims’ to some degree of ‘would be if could be’ dickhead administrators trying to big note themselves. I think this is what the shuffling with McKenzie with the Reds this year is about. An ex Wallaby players coup the moment O’Neill looks sideways. They know the Wallabies can’t afford to take this crap coaching much longer.
    Before the end of the year and not before time. Nucifora will get the chop too. A disaster like Deans. All glib talk but crap actions.

  • Zulu

    So we have JON now operating as a permannet part timer with the prospect of his assistant about to move to Dublin. By my reckoning ( if the ARU claw back the 200k fee JON receives from his part time job and we don’t appoint a new assistant) then it should save us approx 650k……that’s 50k to each Premier club in Sydney….aka third tier competition in waiting….plus a bit for the Brisbane comp. Replace JON with David Gallop or similar and we save another 4-500k. That’s a million dollar lifesaver to RU which will support Premier Club Rugby which will develop into a competitive third tier structure for Australia …

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