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FRU yet to finalize sponsorship due to legal issues with sponsor Digicel

17/1/2014

2 Comments

 

"The Fiji Rugby Union had earlier announced that full details of the sponsorships will be announced today [Friday] however it postponed the announcement of the new rugby sponsors to an undisclosed date with no reason given for the delay." Fijivillage News

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Fiji Leaks understands that the delay in announcing the new portfolio of Fiji Rugby Union sponsors is due to legal issues with former lead sponsor Digicel, who had the naming rights for the national 7s team and major provincial tournament until their contract expired at the end of 2013.

Under Digicel’s just-expired contract, they were given a right of last refusal – basically the ability to continue with their sponsorship if they could match the last best offer of any new bidder.

It is understood that the FRU only sent out the letter to Digicel on Wednesday, formally triggering that right of last refusal, and the company – owned by Irish telecommunications billionaire Denis O’Brien – has a week from receiving the letter to submit their final offer.

Vodafone have been crowing that a consortium of sponsors they have stitched together, including regime friendly companies like CJ Patel and Fijian Holdings, had created a single offer to take over all of the FRU’s major properties for between $5m and $6m per year. It’s not clear whether this was an all-cash offer, and included or excluded VAT. Six million dollars a year inclusive of VAT would see the FRU have to pay almost $1m of that sponsorship income to the government as VAT.

If the FRU had not formally triggered Digicel’s last right of refusal, it’s not clear why Rugby House was so keen to tell the media that the new sponsors would be announced on Friday.

The FRU had all the Vodafone consortium sponsors lined up for the big unveiling on Friday, including Fiji Airways CEO Pilcher. Then it was quietly explained that Digicel was still 'alive' so the party was packed up and everybody was sent home, grumbling.

If Digicel were to renew, by matching the Vodafone consortium’s offer, it would be hugely popular.

As well as a huge poke in the eye to the Bainimarama regime’s attempt to shoehorn its own crony capitalists into Fiji rugby, there is much disquiet about the way Vodafone has pulled together its deal.

A number of the companies within the consortium have Sri Lankans in senior positions, including ATH (Vodafone’s parent), Vodafone itself and Fijian Holdings – a symptom of the December 2006 coup – and it is thought that this Sri Lankan back channel has been the means by which the FRU properties have been divided up, and the finance for the proposal agreed.


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CELEBRATIONS put on hold: ATH Holdings Ajit Kodagoda. A number of the companies within the consortium have Sri Lankans in senior positions, including ATH (Vodafone’s parent), Vodafone itself and Fijian Holdings – a symptom of the December 2006 coup – and it is thought that this Sri Lankan back channel has been the means by which the FRU properties have been divided up, and the finance for the proposal agreed.
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Money and might to take on FRU: Digicel boss Denis O'Brien, the Irish telecommunications billionaire has a fortnight from receiving the letter to submit their final offer
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2 Comments
mustafa
17/1/2014 01:06:54 pm

IRB should cancel Fiji's membership until the FRU is filled with competent people and bainimagana is removed from influence.

Reply
Mere Fletcher
26/1/2014 01:26:31 pm

FRU should just stop wasting time and think of the players and get this sponsorship sorted.

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