THE SCOTSMAN REPORTS
DUNCAN SMITH

YESTERDAY'S announcement that two brothers from Fife, Bob and Alex Carruthers, have completed the first franchising arrangement with the Scottish Rugby Union to take control of Edinburgh came as a surprise on two fronts.

Since the SRU announced ten weeks ago that it was seeking private leadership in the running of its professional sides in order to stem further haemorrhaging of a core debt that stands at £23 million, most of the focus has been on the more precarious Glasgow and Borders, or the possibility of a new team being created in the Caledonia region, rather than a takeover of the most successful outfit on and off the pitch.
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Furthermore, the most high-profile of the interested parties to have been in talks with the union has been Aberdeen businessman Graham Burgess and his consortium that includes former Scotland winger Kenny Logan, and US millionaire Roy Carver. The emergence of the Carruthers brothers has come completely under the radar.

SRU chief executive, Gordon McKie, insisted that "at least two" proposed franchises were still under discussion but confirmed that yesterday's announcement guaranteed the other two pro teams, Glasgow and the Borders, will continue for the time being under SRU control, much to the relief of the players who returned to pre-season training yesterday.

McKie, pictured below, said: "For the past ten weeks we have been looking at a number of proposals to become investor in one or more of our pro teams. The background to that was a budget deficit and a funding requirement of two to three million pounds we needed to make good to get us closer to breaking even. This has culminated in the successful conclusion over the weekend of negotiations with Alex and Bob Carruthers. The upshot of that is that we will be entering into a joint venture arrangement with them into which we will transfer the Edinburgh Gunners.

"Under this scenario no team now will be dropped or need to move. The transfer will legally take place tomorrow [Tuesday] and the new company has been established to take the transfer of all undertakings, player contracts, apprentice contracts, coaching and other support personnel who will then become employed by that company [Edinburgh Rugby Ltd]."

McKie explained that the five-year deal sees the SRU become a minority investor in Edinburgh Rugby Ltd in which it will provide "support, funding and other types of in-kind benefits", while the Carruthers consortium has pledged to invest "several million pounds over the five years". McKie confirmed that the SRU had secured guarantees in respect to player release to the national team and the number of Scottish players in the squad, but he stressed: "The company will be controlled by Bob Carruthers and his consortium."

The principal shareholder Bob Carruthers is abroad on business but his younger brother was at Murrayfield yesterday, where Edinburgh will continue to train and play for the "foreseeable" future. Utilising the national stadium forms another plank of the deal with the possibility of attracting major concerts, via Bob Carruthers' music events business, to Murrayfield in the future.

Alex Carruthers, who is general manager of a training and recruitment company in his native Kirkcaldy, was keen to stress the ambitious vision the new owners have for the capital side.

"We see the potential for a Munster model, we want to see 10,000 people coming to watch us at Murrayfield," said the executive chairman. "But we know that's not going to happen overnight. We're not in this for the short-term, for a quick gain, you just need to look at the figures to see they don't stack up in that respect. We have a long-term view for Edinburgh."

Aspects of the deal are being kept under wraps, for example the precise details of the tenancy arrangement for the use of Murrayfield, and the make-up of the consortium the brothers have put together, which was characterised only as "overseas businessmen who would prefer to remain anonymous".

McKie was keen to stress that the investment was "not a substantial financial injection". Rather than eating into the £23m debt, the arrangement would provide an inroad into projected debt and allow the SRU to get closer to breaking even.

The first major decision Edinburgh Rugby Ltd has to make is appointing the successor to Todd Blackadder as head coach. However, it is clear that, with the SRU's search at a stage so advanced that an announcement is believed to be imminent, the new owners are happy to go along with the union on this.

"We have got to the stage where we would have been keen to make the appointment," explained McKie. "I've involved Alex in that process over the past two weeks and the new company is keen to take our input on that appointment."

Carruthers said: "It would be foolish for us to come in at the 11th hour and change any potential direction we were going with coaches. I believe there have been extensive interviews and the national coach has been involved in that. We are very much Scottish rugby men and don't want to see any dilution of that message."

McKie and Carruthers met with players from all three pro teams yesterday morning to explain the changes and the chief executive revealed the reaction from them was one of "relief".

Carruthers added: "I was able to have empathy with the players as someone who has been a beneficiary of professional rugby but also been under the same risk and threat because when they merged four teams into two I was a victim.

"So I made clear to them that I wasn't coming in as the Grim Reaper."

He concluded: "I believe we've got the jewel in the crown in Edinburgh, we won't make any apologies for saying that, and now we want to improve on that."
Carruthers Inc, coming to a cinema near you

THERE can be no doubt that the Scottish Rugby Union has attracted investors to Edinburgh who are genuine rugby people.

Alex Carruthers' credentials speak for themselves: the first player from Kirkcaldy High School to win rugby honours with Scottish Schools, a stalwart of Kirkcaldy Rugby Club, a leading North & Midlands player at centre and full-back, one of the first generation of Scotland's professional rugby players with Caledonia Reds, and an SRU development officer in Fife between 1994 and 1998. To boot, he was no mean footballer either, representing Kirkcaldy High School in the Scottish Schools Cup final at Hampden Park.

At present, he is the general manager of a training and recruitment company, and lives in his hometown Kirkcaldy.

His older brother Bob - also of Kirkcaldy High School as well as being a graduate of Edinburgh University - was not as gifted a player and has been more active on the sidelines, sponsoring Kirkcaldy RFC and Claverdon rugby club. He has bases "in England and abroad".

What the SRU has not brought on board is a blue-chip investor with unlimited resources. Carruthers senior owns "a number of film and television companies and produces touring music events" according to the SRU blurb, but he is best known for producing two films - Chasing The Deer and The Bruce which are described in the industry as 'low budget'. To raise funds for Chasing The Deer - starring Brian Blessed, Iain Cuthbertson and the rock star Fish - Carruthers' Oxford-based company Cromwell Productions offered stakes to 'associate producers' at £1,000 a time. The shares gave the investor the right to appear as an extra, and a share in profits - but the film was not a box office success, grossing only £85,000 at British cinemas.

Since then, Carruthers senior has found greater success in the United States, and is an Emmy award winning writer, producer and broadcaster. The fact that he wants to invest his wealth - and that others trust him to invest their wealth - in Scottish rugby can only be welcomed.

This article was posted on 11-Jul-2006, 07:35 by Hugh Barrow.