Ateed’s $500k fight deal

Documents reveal case to fund Parker clash didn’t stack up for council body.

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 firming up a business case and backing out. Documents released to the Herald

on Sunday shed light on the proposed contract between Parker’s promoter Duco and the council-controlled organisation.

The deal would have seen ratepayer-funded Ateed paying Duco $500,000 and Auckland named “Host City Partner” of Parker’s WBO title fight with Andy Ruiz jnr.

The contract was drawn up by Duco after Ateed chief executive Brett O’Riley agreed in principle to the deal.

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 led to a contract signed by Duco director Dean Lonergan and sent to Ateed 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 building a case for the earlier funding offer.

Ateed was unable to justify O’Riley’s agreement and had to back out, dealing the fight a potential financial body blow.

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.

Although 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”.

In response to Herald on Sunday inquiries, 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 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.”

The $500,000 agreement was made on October 21, four days before 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.

“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 . . . ” Snedden had to chase O’Riley again. “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.” In a statement, Ateed said its 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.

Ateed also confirmed it had funded Parker’s previous fight, against Carlos Takam in Auckland on May 21.

Ateed would not confirm how much money that deal was worth.