THE SCOTSMANS VERSION OF EVENTS

Dispute set for court as SRU rejects mediation
DAVID FERGUSON
CHIEF RUGBY WRITER
THE Scottish Rugby Union last night formally rejected the offer of mediation from Edinburgh Rugby Ltd, and the professional team owners responded by declaring that they will take the battle into the courts before the end of the month.

The union was lukewarm to mediation when mooted by Edinburgh last week, but the SRU yesterday sought to use the leaking of confidential information by Bob Carruthers, the Edinburgh owner, to justify refusing to meet with an independent mediator to resolve the conflict.

The latest dispute ignited when Edinburgh withdrew their 12 internationalists from the Scotland training camp two weeks ago in a bid to force to a head the long-running battle to receive what they claim they are owed from the union. Edinburgh owner Carruthers insists that he is over £250,000 down on what was promised in a contract signed when he took over the running of Edinburgh from the SRU last summer, but it is understood the lawsuit will seek several million pounds

The SRU maintains it does not owe Edinburgh a penny, and after stating on Wednesday that it would discuss mediation with its lawyers, stated yesterday: "Following the continued and extensive leaks to the media of confidential information and documentation in regard to the relationship between [the SRU] and Edinburgh Rugby Limited, [the SRU] has concluded today that mediation is no longer an option.

"[The SRU] takes very seriously any failure to abide by confidentiality agreements in regard to contracts and correspondence and believes the resulting publicity these leaks create is most unhelpful for the sport at all levels.

Various members of [the SRU] and Edinburgh Rugby Boards have been in discussion since the end of last year, but, despite some significant financial concessions by [the SRU], agreement could not be achieved. This, together with [the SRU's] confidence in its robust contractual position, has led the national governing body to conclude that mediation will not achieve a compromise position that is acceptable to both parties.

"The SRU believes that the contractual rights and obligations of both parties are very clear, and is confident that it is currently complying with its contractual obligations."

Edinburgh Rugby Ltd responded last night by stating: "Edinburgh Rugby deeply regrets that the SRU has rejected [our] offer of mediation. Mediation offered the chance of a win-win outcome to this dispute and the possibility of a creative solution to the present impasse, and an agreed strategy for professional rugby in Scotland.

"It is therefore a great pity that the SRU and their advisers have chosen to reject this offer. Edinburgh Rugby's door remains open to any offer of mediation or negotiation from SRU. However, in the absence of an offer to mediate or negotiate directly, Edinburgh Rugby will assert it rights through the courts.

"There has been a great deal of media speculation about the nature of Edinburgh Rugby's dispute with SRU. To set the record straight, a claim is being prepared in respect of shortfalls in payments due by SRU to Edinburgh Rugby, failure by SRU to comply with contractual obligations, and also in respect of a breach of warranty. The warranty claim arises because financial information provided by SRU at the time of the sale of the Edinburgh team was inaccurate and misleading. The claim will run well into seven figures. An expert accountant report is being finalised and proceedings will be served within the next two weeks.

"It is an unfortunate irony that SRU's failure to agree to a private mediation process, will result in public scrutiny of all of the contracts before the courts. Edinburgh Rugby will welcome such public scrutiny.

"It is clear that litigation is not in the interests of professional rugby in Scotland, or Scottish rugby in general, and litigation should always be the option of last resort. Unfortunately, Edinburgh Rugby is left with no option, but to litigate given SRU's failure to go to mediation. Edinburgh Rugby understands that no members of the Scottish Rugby Council, and only a few members of the SRU Board have seen the agreements between Edinburgh Rugby and SRU which are the subject of the dispute. Edinburgh Rugby calls upon the Scottish Rugby Council to review the position of the SRU executive, and persuade them to go to mediation in the interests of rugby in Scotland."

Bert Lawson, the chairman of Edinburgh Rugby Supporters Club, commented: "If the SRU have nothing to hide, then why not enter mediation, negotiate and get the outcome they are confident of?

"I feel so sorry for the players and the rest of the Edinburgh Rugby staff. I don't understand the SRU. How do we sell season tickets with this?"

This article was posted on 18-Jul-2007, 07:17 by Hugh Barrow.