Arguably the biggest AFL news of 1996 – even more so than the eventual premiership North Melbourne won – was the merger between Fitzroy and Brisbane.
However, right up until the last moments, it was the Kangaroos who had the inside running to unite with the Lions for the 1997 season and beyond. Throughout the week NMFC.com.au will bring you the story, bringing the news of the time back to life.
Part 1: The Beginning
Part 2: The Negotiations
Part 3: The Roadblock
As Part 2 of the story finished, doubts over the North-Fitzroy merger were beginning to surface. A changed guernsey design and debate for the final name of the club provided the sense of everything building to a crescendo.
But then, an astonishing change – Fitzroy was dramatically placed in the hands of a receiver, thanks in large part to the Nauru Insurance Corporation.
To understand what role an insurance corporation, fully owned by the tiny island nation of Nauru has to play in this story, we have to go back two years.
“In 1994 an unlikely saviour emerged in the form of the government of Nauru, which sponsored the Lions to the tune of $1.25 million.
“As a merger with North Melbourne firmed in recent weeks, the Naurans sent in their administrator to try and recover some of their investment.” – Heather Kennedy, Herald Sun
Fitzroy had offered to pay Nauru Insurance $550,000 to satisfy the debt, but at only 42 cents in the dollar the corporation baulked at the proposal – especially when the Lions’ remaining creditors were promised 100 cents in the dollar.
Nauru Insurance then called in consultants Ernst & Young to help recover their money. Michael Brennan – no relation to the West Coast footballer – walked into Fitzroy’s Northcote headquarters, promptly took charge of the Lions’ financial affairs and became the most important Lion in the merger discussion.
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“The newly appointed administrator of Fitzroy, Michael Brennan, has virtually sent out an open invitation for any club to talk to him about the possibility of a merger.” – Anthony Mithen, The Age
“But we are going to talk with North first and if North do the right thing and stick with their agreement we might be able to sign. But there are 15 other clubs out there to do a deal with.” – Michael Brennan
Before the club was placed in the hands of Brennan, The Herald Sun claimed the merger between North and Fitzroy was to be confirmed within the week.
Now, it was open slather once again, or at least so it appeared.
“The Bears are preparing to make a last-ditch effort to secure a merger with the Lions. The possibility of a merger between the Bears and the Lions seemed unlikely when a union between North Melbourne and Fitzroy was almost achieved. Now the administrator has moved in, it opens the ball game and Brisbane is keen to try again.” – Glenn McFarlane, Herald Sun
Not only had the Bears come back into the race, there appeared to be even more bad news.
“North Melbourne may become the second victim of Fitzroy’s financial collapse, with the AFL Commission’s $6 million lure to the merged entity likely to be withdrawn and rival clubs threatening to revolt if it isn’t.” – Rohan Connolly & Jake Niall, The Age
The $6 million on offer from the AFL meant that if the merger did go through, the money would have been enough to wipe all of Fitzroy’s debts and also significantly upgrade playing facilities.
Without it, the benefit for North was significantly reduced.
“They (the Roos) will have a hard time convincing their support base of the benefit of the merger when it compromises the club’s identity for no more than an extended player list.” Rohan Connolly & Jake Niall, The Age
As June ticked into July, the AFL confirmed the $6 million merger offer had been removed from the table.
“The AFL is expected to issue a new licence to a shelf company to take over the players’ contract and allow the team to complete the 1996 season.
“By operating the team under a new licence it would leave the way clear for the Lions and North Melbourne to merge, despite the AFL yesterday confirming it had withdrawn the $6 million it offered for a merger.” – Michael Horan & Daryl Timms, Herald Sun, July 1
Or so it seemed, because just 24 hours later…
“Football powerbrokers are optimistic that a new AFL club, the North-Fitzroy Kangaroos, will be born within 24 hours.
“Fitzroy administrator Michael Brennan was buoyant as he drove to AFL headquarters to discuss the league’s $6 million rescue offer, reinstated last night, to merge with North Melbourne.” – Brett Quine, Herald Sun
Which meant in the space of four to five days, the following had happened;
- North Melbourne and Fitzroy set to merge
- Creditors called in to the Lions and take control of the club
- A merger now opens to anyone and the Bears make another offer
- The $6 million offer taken off the table
- The $6 million offer put back on the table
- North Melbourne and Fitzroy set to merge
Everything was now in hyper drive, moving forward at 100 miles an hour. Roos' CEO Greg Miller said merger negotiations were in ‘their final throes’ and Herald Sun reporter Mike Sheahan stated the North-Fitzroy merger was ‘a certainty’. And then there was a final date placed on proceedings by the AFL.
“By definition, shotgun marriages are always hasty affairs. And that’s what the merger between North Melbourne and Fitzroy became a few minutes before midnight last night when Ross Oakley announced that they had only until Friday lunchtime to formalise their new partnership.” – Ron Reed, Herald Sun, Tuesday July 2
In the midst of it all, Denis Pagan stormed out of his weekly media conference when asked about the merger, and then the opinions of head honchos at each club was sought.
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However it seemed they camouflaged the true feelings about the merger. With potentially an expanded player list of close to 50 for North-Fitzroy, one AFL side’s football manager was much more open.
“Personally, I think it would be football suicide for every other club. You’re just creating a super team. The ramifications are enormous.”
The remaining AFL clubs then called a private meeting, scheduled to take place less than 24 hours before the merger deadline expired.
Friday: The stunning conclusion to months of negotiations at an historic meeting
