THE SCOTSMAN REPORTS
DAVID FERGUSON
TWO potential private investors have told The Scotsman that they remain keen to explore taking over one of Scottish rugby's three professional teams.

The Scottish Rugby Union announced on Friday that the extent of recent financial losses at Murrayfield - debt stands at £23 million - means that the governing body cannot continue funding three teams. One will be axed this summer unless an outside party comes in with £1 million of investment.

Graham Burgess, a businessman from Aberdeen, along with Roy Carver, a US multi-millionaire, is still keen to take over the running of a pro side and his confidence has only risen since a number of other wealthy rugby supporters have contacted him to say they want to join his team.

After digesting the stunning announcement by Gordon McKie, the SRU's chief executive, Burgess said: "This is a great, momentous step forward by the union and has the potential to solve Scottish rugby's main problem in one fell swoop.

"What is costing all the money? The professional teams. If the union is now serious about farming them out, then they have the potential to freeing up money and getting back to doing what they should be doing - running club, youth and schools rugby, the grassroots development, and the international squad.

"I am a Scottish supporter and I want to see Scottish players doing well, and Scottish teams doing well, so I'm not going to block the release of players to national squads or sell them off. We'd be in this for the long-term. Roy and myself have made our money in business and we recognise we will lose some initially, but so did English clubs. They have made it work, however, and I believe in three to five years - hopefully, quicker - we can make pro rugby viable up here.

"We have to do something to stop the cutting of funding for club rugby, age-group squads, the sevens and women's teams. The announcement on Friday was no great surprise because I have known for some time that the SRU was facing another substantial loss. It actually costs around £9m to run the three teams when you take in all the central costs of administration and overheads, and around £6m loss per annum. These costs need to be farmed out for Scottish rugby to have a future."

Outside investment has been discussed for the last decade, to be fair, involving different individuals and groups of varying clout and realism. But the major stumbling block has always been one issue - the SRU's unwillingness to give away control of their teams. The difference now is McKie. Like those before him, he has accepted that money cannot continue to be poured down the drain; like none before him, he has had the courage to take decisive action to stop it.

Ironically, Sale clinched the Guinness Premiership for the first time on Friday, the same day the SRU finally agreed to hand over control to a private investor. Had the SRU entertained Brian Kennedy several years ago he would have taken over the running of Edinburgh and who knows where they and the SRU might be now? Instead, he invested in Sale.

It is perhaps no coincidence that Kennedy is now on the SRU's executive board.

"It is the only way Scottish rugby as a whole can stay alive," said Burgess. "I first approached the union about 18 months ago because I could see there was serious financial problems and I felt I could help the game in this country.

"I've never been confrontational and was happy to stay in the background. I wanted to work with the SRU, not against them. But Gordon has been like a breath of fresh air and is doing a good job of fixing something that is broken."

He added: "I'm not saying I have all the answers; I have an answer. But I know there are a good number of people out there willing to invest in professional rugby in Scotland because they have approached me and stated their willingness to become involved."

The door has suddenly opened and there may be more investors than believed. Alastair Cranston, the former chief executive with the Borders, has met with a group of individuals with a desire to get involved. There are a clutch of millionaires across the region, notably Harry Dobson, the 58-year-old mining tycoon from Lauder who last year sold his 6.5 per cent stake in Manchester United for £30 million and watches Melrose on trips home from Monaco.

Cranston would not comment on which Borderers he had met with, saying only: "Yes, there are people in this area interested in the concept of taking on the Borders and I am willing to give it a shot. I don't see why it can't be done this summer."

Burgess is expected to meet with McKie this week, with Carver and Kenny Logan also involved. Their plan has been discussed positively with the local authority in Stirling, who own Forthbank Stadium, but they also see Falkirk's community stadium and McDiarmid Park in Perth as good venues in which a team could be built from a 2,000 crowd to closer 10,000 over the next five years.

The secret for Burgess is to find a venue which offers good training and supporter facilities and proper corporate hospitality access, with the ability to maximise daily use with conferences and other revenue-building projects.

Burgess feels Glasgow or the Borders are the more likely team for him, but acknowledges that he will push a hard bargain considering the timing means squads are in place for next season. The SRU insist they only have £1m to give, but another £1m from Burgess' team would be enough to maintain either Glasgow or the Borders' existing wage bills.

The burning question for Burgess' team now is how much extra would be required to launch a team at a new location this summer with proper management and administration.

This article was posted on 1-May-2006, 07:04 by Hugh Barrow.