Dear Members

Our open letter to you on 1 December provided an update regarding the dispute with Cundy Sports Marketing (CSM) over the Canberra Marathon. Since sending that letter there have been further developments, including the receipt of an offer to settle from CSM, which we would like you to comment on. However, before commenting on the offer there are two other items for your information.

Canberra Half Marathon

CSM is now also claiming ownership of the Canberra Half Marathon, although this is not part of CSM’s claim in the Federal Court. They have registered the business name and have placed an application for road closures with ACT Roads for that event. This seems extraordinary given that the event was established 40 years ago by our Club founder, has been a part of the annual Club program each year since then and has always been organized by the Club.

2010 Canberra Marathon

We have had a number of members ask why we feel that the 2010 event and possibly the 2011 event may not go ahead (as reported in our last open letter). The main reason behind this statement was the advice the Club received in writing from the Chief Minister in a letter dated 5 November. In that letter the Chief Minister stated that the ACT Government would not “provide any approvals, funding or any other form of assistance for the Canberra marathon” until the dispute between CSM and the ACTCCC is settled. The event cannot be conducted without these approvals.

CSM Offer to Settle

An offer has been received from CSM via their lawyers dated 10 December and comprises a list of points relating to what CSM propose it and the ACTCCC will do under an agreement developed around these points. The document containing the offer is lengthy but the key components of the offer are as follows:

• It would give CSM the right to organize and manage the Canberra Marathon indefinitely;
• It would give CSM the right to the name “Canberra Marathon” including the Trade Mark.
• The ACTCCC would be given permission to use the business name Canberra Half Marathon in respect of the half marathon event we conduct in May each year.
• The ACTCCC would have its logo displayed in various places as a the “Club Partner”;
• The ACTCCC would receive a fee of $3 per marathon entrant and $1 per fun run entrant from 2011 provided the Club supports the event with 100 volunteers and free equipment;
• The rights to the Canberra Marathon would be transferred to the ACTCCC “at the end of CSM’s term” (Given that CSM would have under this arrangement an indefinite right to the Canberra Marathon it would be unlikely to ever come back to the Club; particularly as CSM has indicated in correspondence its intention to sell the Canberra Marathon at some point in the future. Under this proposed arrangement this could easily be done by sale of the business name: “Cundy Sports Marketing”);

Your committee has carefully considered this offer and discussed it with our legal team and we don’t recommend that the Club accept the offer. While we would achieve titular ownership under such an arrangement the practical effect would be to hand over the Canberra Marathon to CSM indefinitely. This is a right that CSM does not currently have as the Club issued a formal Notice of Termination of any alleged contractual relationship to CSM in June 2009 and we would not want to hand over that right by agreeing to this proposal. Assuming that 100 of our members are willing to act as volunteers we of course would get a small amount of money from 2011 onwards but CSM would take what is now a substantial profit each year without any obligation to disclose its accounts (It’s worth noting that there could easily be disputes around who provided the volunteers).

We would like to have your comments on this proposal urgently by email: secretary@canberrarunner.com.au. Committee members are also available to provide further information or to discuss these matters.

ACTCCC Committee