The encyclopedia · Advertising & PR · Marketing decision · 2019
Rugby Australia fired its star over an Instagram post, then settled for a secret sum
Israel Folau's Instagram post sent homosexuals to hell; Rugby Australia sacked him, he sued for A$14m, and the sides settled confidentially in December.
Rugby Australia · 2019-04
What happened
Israel Folau, the Wallabies' 30-year-old fullback and one of rugby union's most marketable players, posted on Instagram in April 2019: 'Drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolators - Hell awaits you.' Rugby Australia moved to terminate his contract, which ran to 2022.
Folau demanded a hearing, and on 17 May 2019 a three-person panel upheld the dismissal. Rugby Australia chief executive Raelene Castle said the organisation had been left with no choice, calling the affair 'an unwanted distraction in an important year for the sport' — the year of the Rugby World Cup.
Folau sued Rugby Australia and NSW Rugby for A$14m over religious discrimination. On 4 December 2019 the parties announced a settlement for a confidential amount, both apologising for 'any hurt or harm caused'; Rugby Australia said it did not 'in any way' agree with the content of the post.
Why it happened
- Rugby Australia's code of conduct made inclusion core to the sport; a public post sending homosexuals to hell left the organisation no defensible way to keep the player, whatever his market value.
- The dismissal landed in a World Cup year, when the code needed sponsors' attention on the tournament; the dispute became the distraction Castle named, running from April to December.
- Folau fought the dismissal through a hearing, then sued for A$14m, so a conduct decision became a legal fight the code had to buy its way out of with a confidential settlement.
The lesson
A values clause costs what the employer will pay to enforce it: Rugby Australia fired its star for the post, then settled his A$14m claim for an undisclosed sum — the exit outlived the offence.
Aftermath
The parties settled confidentially in December 2019 with a joint apology, Folau saying he did not condone discrimination of any kind against any person on the grounds of their sexuality. The Wallabies played the 2019 World Cup without their most recognisable back, and the code kept its inclusion stance.
Sources
- Israel Folau sacked by Rugby Australia for social media post — BBC Sport, 17 May 2019
- Israel Folau reaches settlement with Rugby Australia — BBC, 4 Dec 2019
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