THE HERALD REPORTS

KEVIN FERRIE, Chief Rugby Writer April 27 2006

Senior officials at BT Scotland are set to boycott Scottish Cup finals day, club rugby's showpiece, which the company sponsor, after a row with the Scottish Rugby Union.
The telecommunications giant may also be about to end their involvement with the game altogether after the SRU said they feared the company were losing interest in the sport, despite the success of the national team this season.
The Herald understands that officials at BT Scotland have decided not to take part in the presentation ceremonies at the gala day at Murrayfield on Saturday because they have been upset by a dispute over the amount of responsibility the SRU had for promoting it.
It is feared a lack of investment in the marketing of the event, which will feature the finals of the BT Cup, Shield and Bowl competitions, could contribute to a record low crowd.
The SRU said yesterday that negotiations with BT Scotland about future sponsorship had been difficult and said they were surprised and disappointed that the company had not agreed to a new deal to replace the existing one when it ends next year.
Dee McIntosh, the SRU's communications director, yes-terday admitted it was unlikely a BT Scotland representative would be in the presentation party when the prizes were awarded after Saturday's finals and that negotiations between the organisations have been troubled.
"The sports minister [Patricia Ferguson] will be at Murrayfield to hand out the trophies and we are talking to BT but, as things stand, they may not be there," she admitted.
Commenting on talks about future sponsorship deals with BT Scotland, McIntosh said: "They [BT] seem to be losing interest in their involvement in Scottish rugby. We have been trying to offer them a bigger and better package but are disappointed and surprised that they seem less interested.
"We felt that, with the success we have had this season at the top end, it would be seen as an opportunity by our existing sponsors and we are keen to keep them all involved. We also believe that BT Scotland have had their best-ever value from us [this season] up until now."
Despite not reaching a new agreement with BT Scotland, the SRU has seen an upturn in interest since Scotland's RBS 6 Nations wins over European champions France and, in particular, world champions England when the Calcutta Cup was won in February.
McIntosh added: "In a general sense, there is more interest in us as a brand. That is not in any way surprising as any kind of significant success, such as winning the Calcutta Cup, is likely to generate interest."
Extending back through the seven most turbulent years in Scottish rugby history, BT's sponsorship of the club Premiership, National League and national cup competitions has been relatively low profile.
The company has repeatedly stated that its aim was to use the deal to develop community links, mainly by linking its staff with individual rugby clubs.
Both organisations have been coy about the fiscal values involved but, in recent times, little cash is believed to have changed hands, with much of BT's investment coming in the form of technological support.
There has not been the level of marketing spend that might be expected from a major sponsor, with BT leaving the SRU to take the initiative when promoting finals day.
However, with Gordon McKie, the new chief executive, tightening the purse strings, marketing has been minimal this season and it is expected that fewer than the previous lowest crowd of 11,722 in 2004 will attend.
A spokesman for BT Scotland was not available for comment yesterday.
This latest difficulty arises at a key moment in deciding how the SRU will prioritise their spending.
The chief executive will outline his plans at an SRU board meeting at Murrayfield today with every aspect of the business having come under scrutiny.
A statement detailing where reductions and any increases in spending will be made is expected tomorrow.

This article was posted on 27-Apr-2006, 07:22 by Hugh Barrow.