THE SCOTSMAN REPORTS
No chance of fourth pro side, says McKie
SCOTTISH RUGBY'S MAIN MEN
DAVID FERGUSON
WHEN Gordon McKie applied for the vacant post of chief executive at the Scottish Rugby Union following the resignation of Phil Anderton, he was told he would not be considered because he had no rugby connections.

Just six months later, he has taken a grip of Scottish rugby with a strength none before him could achieve and is preparing to transform the game in this country.


The fruitless search for a new leader saw the SRU return to the original list of applicants, and McKie was catapulted into the post with haste and a little embarrassment.

The new regime at Murrayfield who replaced the old committee system put their faith in a man known as a "fixer" of problem firms to effect what he believe is the long-awaited change which can lift Scottish rugby into the professional age.

Some are fearful of the future, and others within Murrayfield who tried to slow his progress are no longer working for the Scottish Rugby Union. But having shown there is substance beneath his style, currently in the form of a series of follow-up roadshow meetings he is holding in rugby clubs around the country, there appears to be an acceptance of the new man's approach.

There is no doubt that McKie raised hackles upon his appointment in August with his comments on the state of Scottish rugby. He makes no excuses for stating that the SRU, with a turnover of several millions and a debt of £23 million, is a major business, but has been quick to add that simple business sense dictates that cutting of costs must be balanced with investment in "our core business, which is obviously the rugby."

Clubs were livid with Anderton, his predecessor, for scrapping payments, some totalling over £20,000 midway through last season, to stem losses elsewhere, but though there has not yet been any restoration of such central funding the traditionally sceptical club men have yet to leap on McKie's back.

The professional team coaches speak of a new leader who listens to their arguments, understands and shows faith in them, not least with moderately increasing budgets, while Frank Hadden, the national coach, believes the support he is receiving from McKie's executive has given him fresh optimism about what Scotland can achieve.

McKie himself carries the demeanour of a man less interested in pleasing people than getting results; less interested in the rampant egos within Scottish rugby, and more concerned with the numbers of people playing, watching and buying into the game.

He said: "There are basic principles involved in helping turnaround any business. Year one is about understanding what's wrong, year two about putting it right and year three is concerned with improving profitability and starting growth.

"By June 2006, we should be moving into the year two stage and though it's going to take time I'm confident Scottish rugby on and off the field will be starting to be more competitive. That is my job quite simply, but it is important that we excite and encourage everyone working within Scottish rugby to the extent that they can make it happen."

He admitted that after initial months where he could not believe the manner in which the SRU had been run since rugby turned professional in 1995, and struggled to uncover genuine figures of where and how money was spent, he is moving into 2006 encouraged by positive signs.

One of McKie's short-term successes has been to pull the SRU's main financiers, HBOS, back on board, a clear priority for anyone taking over the debt-ridden shambles left after the five executive resignations in January. He revealed that HBOS had instigated its own independent review of the SRU's finances, having grown increasingly uncomfortable with the lack of clear information being supplied to them over recent years.

The turnaround in confidence, he insists, was reflected by the Bank of Scotland Corporate agreeing to put more money into the Union by way of sponsoring the autumn Tests.

But how can McKie succeed where others before him failed, notably the respected businessman and former executive board chairman David Mackay? Poor governance structure brought about the downfall of Mackay and Anderton, yet some of McKie's criticisms of poor management occurred during their watch. McKie refuses to blame individuals, but insists there are various routes to recovery yet to be tried. Selling off Murrayfield's back pitches per chance?

"It had to be considered," he said, "but my view is that it would be wrong to sell off the family silver. Murrayfield is an institution in Scottish culture and the back pitches are great assets that we should be proud of. Selling a part may make sense, perhaps around the ice rink, but there is still a public inquiry on the flood barrier issue going on.

"At the moment my main concern is making the stadium sweat a bit - bringing the pop concerts back here, perhaps linking up with Hearts next season while they rebuild, and look more closely at relationships with debenture holders, supporters, merchandising, hospitality and conferencing - areas we can do much better in than at present.

"There are no quick fixes, no windfalls waiting, but we have been looking at areas of inefficiency where tightening up and proper business controls will help stem losses."

The big question which looms large over any discussion on Scottish rugby's finances is whether we can actually afford professional rugby teams. With the knowledge that English clubs like Sale are only now turning a profit because their crowds are touching 10,000 regularly, clearly crowds of under 2,000 in Scotland cannot sustain the game.

"All the poor practices of Murrayfield apply to the professional teams as well," said McKie, "so before deciding whether teams stay or go, we first have to make them work harder. The lack of cost control, accountability, sponsorships, active generation of revenue, involvement of third parties, is ridiculous really.

"But then look at the timings of games, ticket prices, the structure of seasons where our teams can have one home game and then seven away, and one realises why people may be reluctant to get involved. So, we plan to be more commercially aggressive at the negotiating table, starting with regular home and away games next season for a start.

"I can't give guarantees on the future of any of the teams, not when they are attracting such poor crowds, but I do feel the wider rugby community in Scotland has accepted that we could not be a meaningful ranked nation without professional teams. So we want to improve these operations."

He added: "A lot of it comes down to simply working together and communicating well. For instance, we took all the pro coaches away for a couple of days earlier this month to plan for 2006; to look at what positions we need reinforced, where we're over-staffed, and how they want to proceed. "That means they can get on a lot sooner than in past years to negotiating contracts and creating better squads for next season.

"But they also have a responsibility to give us a return for the investment we put in - they have to improve their performances, have to be more integrated to their communities and bring through more local young players rather than resorting to the chequebook for overseas players.

"We will soon have new professional team boards with strong, experienced characters who we hope will drive these operations forward in 2006 and be accountable for the progress, or lack of progress they make.

"There are individuals and a consortium with whom we've discussed investment in pro rugby, but it is too much of a leap of faith for them when, for example, we have had no reliable income and ticket sales information of the past few years to show them.

"We also need to be clear about what they are seeking - kudos and headlines, cash or a more philanthropic benefit. There were rumours about a fourth team in Aberdeen, but a fourth pro team is a complete non-starter under SRU ownership. Scotland is not big enough for four professional teams.

"But we're also looking harder at the grassroots as well and that must improve in 2006. We have just hired 12 regional development managers to work with local authorities, improve relations with schools, minis and clubs, which is vital to Scottish rugby."

McKie's first real test will come at the next annual general meeting in June, where his ability to make a dent in the overdraft and retain goodwill across the game will be assessed. Then we should have more tangible evidence of whether Allan Munro, the executive board chairman, and union president Andy Irvine were right to return to discarded candidates and put McKie in charge.

"I am looking forward to getting to that stage," he concluded. "I would hope then to be able to report on a year of great progress and a successful Six Nations; pro teams finishing higher in the Celtic League; community rugby in good health and more playing the game; and a union in harmony with its clubs, perhaps for the first time in a long time.

"I think that would cap a remarkable year of transformation at the SRU."

This article was posted on 30-Dec-2005, 09:09 by Hugh Barrow.