THE HEARLD REPORTS
McKie admits less than half of potential investors are credible

KEVIN FERRIE May 31 2006

Less than half of those who have registered interest in buying into one of Scotland's professional rugby teams have the wherewithal to do so, according to Gordon McKie, the SRU's chief executive.
He said that a total of 11 prospectuses had been issued to potential investors who have been prepared to sign confidentiality agreements.
Stage two of the procedure involves those individuals or groups being submitted to a means test to assess whether there is a realistic chance of them being able to sustain the necessary investment for at least the next four to five years.
It is on that basis that McKie believes only four bids currently look credible, one each specific to the Borders and Glasgow, while the other two have not specified which team they are interested in.
McKie did confirm what has widely been believed since he announced that one of Scotland's professional teams may be cut next year: that the threat does not really apply to the Edinburgh Gunners. "It is unlikely to be [them] because of where they are," he said.
In terms of the choice between the Border Reivers and Glasgow Warriors, he said he was "trying to put that off" but is still hopeful that with a month to finalise the financial situation both will remain.
There are major complications for both in relation to their grounds. The terms of a 20-year deal made by the previous management to play professional matches at Galashiels are to be challenged.
"It is the subject of an external legal review because it is highly uncommercial," he said.
At least the Reivers have a home base, however, whereas the nomadic Warriors are still waiting to find out where they will be playing next season.
Negotiations are ongoing with Partick Thistle regarding continuing to use Firhill. Longer-term the possibility of moving to Scotstoun remains an option, but McKie seemed to rule out a return to their former home at Hughenden.
"From what we understand Hughenden is in a state of disarray from a facility perspective," he said.
Of course, there does remain uncertainty over the management of the Gunners setup since a new head coach is yet to be appointed.
"We have two, possibly three guys on hold," said McKie. "They know the situation and they accept it."
In short, those candidates in the running must wait to see how many teams there will be and whether private investors, who may want to appoint their own coaches and administrators, will come forward.
Beyond the pro teams, McKie claimed there were encouraging signs on the commercial front with five potential sponsors having emerged in the wake of the improved Six Nations Championship performance.
Two sponsors have indicated interest in an involvement in the community game, so could replace BT as backers of the domestic league and cup competitions.
The telecoms giant was previously expected to remain involved for another year but, as revealed in The Herald last month, their commercial involvement with the SRU is to end. Curiously, McKie said no written contract between the SRU and BT exists.
Another key issue is the relationship between the professional teams and Premiership clubs, with Glasgow Hawks and Heriot's having tabled a motion to next month's annual meeting demanding that all players not involved with pro teams on any weekend be made available to club sides.
That would run contrary to plans to strengthen the SRU's academy setup, but Andy Irvine, the SRU's president, expressed confidence that the matter would be resolved once the full details of those proposals are outlined.
In terms of the hierarchy, Irvine noted that following last week's announcement that the SRU's vice-chairman, Fred McLeod, is standing down, he believes Allan Munro - who suffered a minor stroke last month - will be fit to resume all his duties as chairman in time for the agm.

This article was posted on 31-May-2006, 07:33 by Hugh Barrow.