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Five Untruths the Fiji Rugby Union Have Told about the Vodafone Deal!

9/2/2014

4 Comments

 
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1. The five-year agreement signed on February 3 with the Vodafone-led consortium is not worth $40m

2. The five-year deal is VAT inclusive. So the actual net amount received by Rugby House after VAT is paid to FIRCA is $40m minus 15 percent ($6m) or $34m

3. The five-year-deal is not even worth $34m because included in Vodafone’s contract is a clause that allows them to spend $2.5m per year (or $12.5m over five years) on their own Vodafone marketing and advertising spend, and put it against the sponsorship cost of the FRU. So each time Vodafone creates an print, TV, radio or billboard advert using a Fiji rugby reference, or produces and distributes a T-shirt branded with Fiji rugby, Vodafone claims the whole cost against the FRU’s sponsorship as marketing or ‘activation’ spend (including all costs of production). So $34m minus $2.5m per year for five years ($12.5m) is $21.5m

4. The five-year deal is not even worth $21.5m because it will certainly also include as much as possible, at least $500,000 per year, in Vodafone handsets, talk time and SMS usage. So $21.5m minus $.5m per year for five years is $19m

5. And the cash component of this deal is also beginning to look very suspicious. When the Vodafone consortium deal was originally announced on February 6, the FRU chairman Filimone Waqabaca confirmed it as $3.6m in cash. Multiplied over five years this would be worth $18m in total. But the Fiji Times reported on February 7 Waqabaca saying it was "about $3.6m in cash". The reason for the “about” was clear from the Fiji Sun of February 8, when Vodafone CEO Aslam Khan detailed how the annual $3.6m also included bonuses for the 7s team - $10,000 if they were beaten semifinalists in an IRB Sevens event, $15,000 if they were beaten finalists and $25,000 to be shared between the team if they won any of the nine tournaments. By that logic, the “about $3.6m in cash” is in fact a best-case scenario/maximum receivable amount, including up to $225,000 per year in 7s bonuses (9 x $25,000) which would only get paid out, to the FRU and from the FRU to the team, if the team won every single IRB 7s tournament …something which has never happened before. So the $3.6m in cash is more likely to be a base payment of $3.375m, or $16.875m.

Dear Mr Permanent Secretary Finance

$16.875m is not the same as $40m.


Signed
Fiji Leaks

4 Comments
Rajesh
9/2/2014 06:09:01 pm

Vinaka Victor.
FRU are liars like the regime.So Vodafone will claim 40 million as 150% tax rebate.
Why fru have to pay for Vodafone marketing ?
Digicel was better deal and they gave cash.
Major union have ask hard question and get the truth out of this shady deal.

Reply
George
9/2/2014 11:46:43 pm

Bloody bullshit..where de hell you getting your F++u+KEN source from.Why dont you prove it by showng us some proof. get your facts right...Can you sponsor a big amount lke that?FRU is like a sinking ship without a captain so we must happy their are people and company coming at time of needs for the better of rugby and for the best interest of the Fiji public as whole.

Reply
Malakai
19/2/2014 02:33:24 pm

at george first of all whats so better about it if they are lieng to people and give the public false information? Digicel was giving way more than what VF is giving - how is that better for rugby?

as for the facts i reckon almost everything that is on here is true and comes out before it does in the media...so why wouldnt this be true?

Reply
John
17/8/2015 04:39:11 am

Ni yavu tamata lawakica macawa and butabutako kece

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