w Bill Pulver Chief Executive Officer i Ground Roor, 29 - 57 Christie Street l d!ssr St Leonards NSW 2065 - Australia l RL/GBY PO Box 115, St Leonards NSW 1590 l +61 [2) 8005 5555 l t l 24 March 2016 . +61 (2) 8005 5699 j 11 {l" 't; :,ll.liFi.i.'l. ili i li' l l 36 002 898 544 Ron Alexander i 002 898 544 l Director General l Department of Sport and Recreation i l l Government of Western Australia i 246 Vincent Street l Leederville l Western Australia 6007 l l i Dear Ron, i t l t l Thank you for your note about the Western Force. I am Iooking forward to our meeting on Tuesday as I > believe that all three entities, Government of WA, Ru@byWA and Australian Rugby Union (ARU) are l l aligned in our desire to see a stable Western Australian Super Rugby club. l l In light of RugbyWA's recent financial challenges we have been having extensive dialogue with the Board l l and CEO to develop a model that will ensure the Iong term success of the Western Force in Perth. Despite the recent significant uplift in our broadcast arrangements we are seeing all of our Super Rugby l sides experience some degree of financial hardship. My understanding is that these challenges at club level are not Iimited to Rugby Union. The ARU is committed to maintaining the Western Force in Western Australia. We do, however, believe l there is a need to evolve the current operational structure and implement initiatives that will help the l Western Force become more competitive on the field. l l Our discussions with RugbyWA to date have been most productive and we have developed the following t guiding principles for an appropriate operating model: i 1. ARU and RWA are committed to working co-operatively in a partnership to grow and l t develop the game of rugby in Western Australia, in alignment with Australian Rugby's strategic plan, and to provide a strong pathway from the grassropts to the professional game, in a model that is financially sustainable. 2. RWA recognise that ARU shall be responsible for all aspects of managing professional t rugby within Western Australia, with a key focus on developing competitive teams and l driving commercial revenues. l 3. ARU recognise that RWA is responsible for administering and developing community rugby and development pathways in Western Australia and are committed to supporting RWA in their ambition to grow and develop community rugby and provide successful development pathway programs to grow the player base for professional rugby. 4. ARU and RWA recognise the need for a business model that Ieverages single point capability by removing duplication in business systems and processes, and utilises i resources where best suited, whilst retaining the connection and engagement with local stakeholders. l s. The business model must be flexible enough to allow the introduction of alternative forms l of investment in the future. l l i k glasics l QANrAS l Solril ol Auskralla l ! Bill Pulver 'J Chief Executive Officer :'ii?istr;ilia : i Fi: i; )by i )riii it i l.ii-i'ii{ed r,@??., Ground Roor, 29 - 57 Christie Street -6 australian12-'s St Leonards NSW 2065 - Australia RUGBY PO Box 115, St Leonards NSW 1590 +61 12) 8005 5555 . +61 (2) 8005 5699 'v'.'.:'11;li'.i7,i':.(l:'N.)11,1 36 002 898 544 002 898 544 It also needs to be acknowledged that the Western Force face some unique issues in Perth, in addition to the obvious travel and relocation challenges. One such issue is the cost of the hiring nib stadium, which from our understanding, is one of the more expensive venues in Australia. The Australian Rugby Union is most appreciative of the significant support provided by the West Australian government over the past 10 years to assist the establishment of the Western Force. Both the nib ground and the Western Force training centre are world class and a tribute to the wider WA sporting community. IIook forviard to discussing these issues with you on Tuesday. ind rpgards, il?lver' Chief Executive Officer Australian Rugby Union l l l l l k g!asics @ANrAS Soiril ol Auslralia.