Former ARU boss John O'Neill receives massive payout upon leaving the game Former CEO of the Australian Rugby Union, John O'Neill. MURMURS about the size of John O'Neill's golden handshake on leaving the ARU have rumbled around rugby circles this week since the ARU released its annual report. O'Neill, who resigned as CEO and managing director last year with 14 months left on his contract, is listed in the financial notes as having been paid $2,187,789 in salary and incentives. The notes state O'Neill's "remuneration includes payments made in accordance to annual remuneration structure until his resignation, partial payment of incentive based remuneration and other contractual and statutory entitlements." In laymans terms, it's understood O'Neill was paid out the majority of what was left on his contract after deciding 'mutually' with chairman Michael Hawker he would step down a year early. The ARU reported an $8.3 million deficit for the 2012 financial year, with a large increase in expenditure, a drop in sponsorship revenue and copping the rough end of currency exchange pineapple with the strong Aussie dollar devaluing the US dollar-negotiated SANZAR TV deal. Match-day costs (due to more Tests being staged) were up, and corporate expenditure was up as well given O'Neill's departure. O'Neill critics are rolling their eyes around town, but others see an ARU strategy at play. Instead of stretching the pain over two years, the entire hefty sum was rolled into an already sizeable loss. Now off the books, it won't eat into the bumper profit the new regime expect to triumphantly report next year after the money-spinning 2013 Lions tour. BRUMBIES prop Dan Palmer wasn't ever going to complain about James Horwill rucking him around the melon last week in Queensland. Palmer is a fan of bringing rucking back to rugby, and therefore declined media approaches about the incident. Fans of Palmer's entertaining column in the Canberra Times will be disappointed to hear it's been shelved by the Brumbies. Palmer's witty (and unghosted) writing ranged across topics, but apparently drew complaints as well. We hear one column about the virtues of just eating meat earned the ire of vegie-loving dieticians, and in an ironic final straw, a column about the stupidity of political correctness got some PC police firing off predictable outrage. Stay tuned, however. We hear Palmer could pick the pen back up next year from France. COULD James O'Connor be the man to fill Digby Ioane's shoes at the Reds next season? This column was told several months ago Queensland were thinking about whether to shuffle Ioane on to free up cash for O'Connor. The bitter dispute between Ioane and the Reds this week is set to see the Test winger leave for France, so could brand O'Connor return home to Queensland? There would have to be a major peace-pipe session between he and former Force coach Richard Graham, who will take over as head honcho at the Reds in 2014. The pair traded harsh words when O'Connor offered up his infamous KPIs to the Perth club to stay. BARRING misfortune, ink in James Horwill as Wallabies captain for the Lions series. The returning lock faced a challenge to regain his captaincy from David Pocock, but that has obviously passed with the flanker injured. Horwill addressed the Wallabies' recent camp as Deans' clear choice as leader. MEANWHILE, June 8 shapes as Quade Cooper's d-day for Lions selection. If Cooper is not among the first 25 picked in late May, we hear the five-eighth will be told to play for Queensland against the Lions, where Deans and selectors will gauge his response to the pressure. Talent is not the selectors' concern regarding Cooper, but memories of his mixed response to the intensity of the RWC 2011 remain. QUADE will be among the key players in tonight's match between Queensland and the Blues, with the Reds attempting to become the first Australian team in the 17-year history of Super Rugby to clean sweep Kiwi opponents. The Reds have already defeated the Hurricanes, Highlanders and Chiefs (they won't play the Crusaders in the regular rounds) and coach Ewen McKenzie said: "We're always interested in those little bits of opportunity and making a little bit of history. We're a side that takes pride in ticking off new milestones and breaking hoodoos. MA'A Nonu is certain to start at No.12 for the All Blacks despite his patchy form for the Highlanders. Nonu was involved in an All Black leadership meeting last weekend including Richie McCaw, Dan Carter, Andrew Hore, Kieran Read and Keven Mealamu. Nonu's record in Super Rugby is alarming; losing nine of 16 games at the Hurricanes in 2011, 10 of 14 games at the Blues last year, and he has played in six of the Highlanders' eight straight defeats to start season 2013.