Ateed agreed to give Duco Events $500,000 towards Joseph Parker's world title fight - before council's investment arm looked at the business case. Photo: www.photosport.co.nz
Ateed agreed to give Duco Events $500,000 towards Joseph Parker's world title fight - before council's investment arm looked at the business case. Photo: www.photosport.co.nz
Auckland Council's events agency Ateed committed half a million dollars to Duco Events to help fund boxer Joseph Parker's world title fight - before looking at the event's business case and backing out.
The Herald on Sunday can throw new light on the boxing funding saga, including versions of a $500,000 contract between Parker's promoter Duco and council's events arm, Auckland Tourism, Events and Economic Development.
The proposed deal would have seen ratepayer-funded Ateed paying Duco $500,000, in return for Auckland being named "Host City Partner" of Parker's WBO title fight with Andy Ruiz Jr - which Parker won last weekend.
The contract was drawn up by Duco after Ateed chief executive Brett O'Riley agreed to give the promotions company half a million dollars, before knowing if the event met council's strict public funding rules.
It can be revealed that on the same day O'Riley emailed Auckland mayor Phil Goff and councillors, to say funding discussions with Duco were "at an early stage, I wanted to update you with what we know currently", Duco was emailing O'Riley - thanking him for a phone call and "confirmation that ATEED is in for $500k."
O'Riley's pledge triggered a contract, which was signed by Duco director Dean Lonergan and sent to Ateed's top office - with the boxing promoter expecting the deal to go ahead. But O'Riley stalled.
Duco chief executive Martin Snedden pressed for his signature, while Ateed was working on justifying the earlier funding offer which had been made in the phone conversation.
Eventually, Ateed was unable to justify O'Riley's agreement and had to back out, dealing Parker's shot at history a potential financial body blow.
Brett O'Riley, the Auckland Tourism, Events and Economic Development boss who agreed Duco Events $500,000 of public money for a boxing event which hadn't been assessed against council rules.
The chain of events can be revealed after the release of 250 pages of documents between Ateed and Duco, released under the Local Government Official Information and Meetings Act.
While parts of the documents have been redacted, they reveal a pivotal moment in negotiations, an email from Snedden to O'Riley headed "STRICTLY CONFIDENTIAL / URGENT".
Brett, thanks for your call. Thanks for confirmation that ATEED is in for $500k.
In response to Herald on Sunday enquiries, Ateed confirmed: "Brett O'Riley made a verbal commitment, in principle, based on information which appeared to closely align with the outcomes sought by Auckland's Major Events Strategy."
It said of O'Riley's communication to Goff: "The update to the Mayor and councillors accurately reflected the work ahead.
"The Mayor and Ateed representatives met on two occasions when the proposed sponsorship of the event was discussed. During a meeting on 25 October 2016, the Mayor expressed his desire for a business case justifying any investment, which Ateed had already begun preparing, in line with the organisation's processes."
O'Riley's $500,000 agreement to Snedden was made on October 21, four days prior to that meeting with Goff - who was elected Mayor on October 8.
The documents also reveal how Duco began to get frustrated, as Snedden pushed to secure the funding for Parker he'd been agreed.
"I'm aware that Brett is on his way to China. He indicated that you would handle to [sic] finalisation of the Duco / ATEED contract for Parker v Ruiz," Snedden emailed to an un-named Ateed staffer.
"...We need to complete the documentation recording our agreement..."
"Attached is the Duco / ATEED letter signed by Dean," he wrote. "Brett, I understand you need to approve execution by use of your electronic signature. I would be obliged if this could be action [sic] ASAP. Thanks, Martin."
And again: "Be great if you can get the contract to me as early as possible tomorrow."
Ateed received help from Duco getting the proposal to stack up against funding criteria, including details on TV markets and viewership numbers, and also engaged third parties for "economic impact analysis."
But with the date of the fight still uncertain, Ateed staff were seeing holes.
"Duco has put in the contract that the event could take place any date up to 31 March 2017. This is our busiest time and we don't need the visitation." emailed an un-named Ateed staffer.
In a statement to the Herald, Ateed said it's announcement not to sponsor the event was due to running out of time.
"In a subsequent meeting on 4 November 2016, Ateed indicated that the organisation was unable to accurately assess of the potential of this event. As a result, Ateed indicated it would not be providing funding for the event," a spokeswoman said by email.
Ateed also confirmed it had funded Parker's previous fight, against Carlos Takam in Auckland on May 21.
Ateed refused to confirm how much money that deal was worth, saying "withholding the information is necessary to enable Ateed to carry out commercial activities without prejudice or disadvantage."
TIMELINE: ATEED, DUCO AND THE $500,000 DEAL
OCTOBER 21: The WBO sanctions Parker v Ruiz. The same day Ateed boss Brett O'Riley emails Mayor Phil Goff and Auckland councillors about a "Joseph Parker opportunity". O'Riley says "Duco has asked ATEED to consider a significant contribution as a host city partner" and that "discussions are at an early stage." The same day, Duco CEO Martin Snedden emails O'Riley: "Brett, thanks for your call. Thanks for confirmation that ATEED is in for $500k."
OCTOBER 27: Snedden emails an un-named Ateed staffer: "I'm aware Brett is on his way to China. He indicated you would handle the finalisation of the Duco / ATEED contract for Parker v Ruiz." Snedden again sends contract for O'Riley to sign. The same day Ateed sends Duco a revised version of the contract.
OCTOBER 28: Duco boss Dean Lonergan signs contract and Snedden sends to Ateed. The same day Duco announces it has withdrawn an application through central government's Major Events fund.
