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Court Documents Allege University VC Cut Brumbies Ties After New CEO Queried Deal

Court documents allege that the vice-chancellor of the University of Canberra "severed all ties with the management" of Super Rugby side ACT Brumbies, despite it being based on campus, after its CEO exposed "questionable dealings between the entities," according to Anthony Klan of THE AUSTRALIAN. In documents filed with the ACT Supreme Court, former Brumbies CEO Michael Jones "claims a string of parties, including university vice-chancellor Stephen Parker, moved to attack his reputation after he raised concerns about the team’s relocation." Parker and at least one other ­accused party "have strenuously denied the allegations." In '13, the Brumbies "sold their Griffith site, in Canberra’s inner south, to a developer and did a deal to move to the UC, with a view to freeing up capital." A tax concession of up to A$7.5M from the ACT government granted for the benefit of the Brumbies instead "was enjoyed by property developer Amalgamated Property Group." At the university, the Brumbies made a 30-year deal and paid A$5M for a "sports hub" to be built, despite team lawyers strongly ­advising against it. Jones claimed that along with the lost grant, the Brumbies also "were worse off under the UC deal" as they now paid about A$400,000 ($297,600) a year in outgoings, up from A$100,000 ($74,400) at their old site. The deals "are understood to be examined in detail in a KPMG report commissioned by the Brumbies that currently is suppressed." Jones alleged in court documents that "he approached Professor Parker seeking to remedy the terms of the university deal and to discuss what he thought were serious problems with it, but the professor declined to negotiate" (THE AUSTRALIAN, 6/10).

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