The Scotsman reports

Scottish Hydro generate greater power for club rugby
DAVID FERGUSON
SCOTTISH Hydro Electric has agreed a three-year deal to become Scottish rugby's new domestic sponsors, starting this weekend with their name adorning the clubs' new Super Cup.

The deal, also covering the Premiership, National Leagues and cups from next season, is said to be worth a "substantial six-figure sum."

Neither party would say how much real cash was involved, nor how much would go on marketing, so clubs are not likely to experience a sudden windfall, but Colin Thomson, head of the community game, explained that the new backing was crucial to the union's renewed efforts to regenerate club rugby.

"To have a major sponsor gives us some credibility, both as [the SRU] but also as an organisation of rugby clubs. Clubs deliver a huge amount of coverage across the country and we want it to be more, but we have to help them do that and sponsorship such as this is significant."

Thomson insisted the six-figure sum was ring-fenced for club rugby, so would not go towards the union's £23 million overdraft, but added that they were still to fine-tune exactly how the money would be distributed "in order to maximise the benefit" to the game as a whole.

The return of prize money remains a possibility, but clubs have also mooted the possibilities of greater help in funding club development officers or travel expenses, while the SRU is keen to use new funding to grow new community programmes.

Next season will return to a 12-team Division 1 and there are also proposals to alter the cup. The plan currently being circulated among clubs is to regionalise the competition, possibly as far as the quarter- finals, to create an increase in local derbies and cut down on travel costs.

This article was posted on 5-Jan-2007, 08:57 by Hugh Barrow.