EDINBURGH EVENING NEWS REPORTS
Edinburgh call on SRC to mediate with McKie
GAVIN McCAFFERTY
EDINBURGH have urged the Scottish Rugby Council to make a last-ditch attempt to prevent their dispute with the Scottish Rugby Union reaching court.

The club have vowed to issue legal proceedings within two weeks after the governing body rejected an offer of mediation to resolve the row over an alleged shortfall in funding. But they insist a legal battle is a last resort and have pleaded with the rugby council to persuade SRU chief executive Gordon McKie to settle the matter outside the courtroom.

Edinburgh owner Bob Carruthers contends the union owes his club about £250,000 in unpaid Heineken Cup and Magners League fees.

But the SRU claims it has made "significant financial concessions" to Edinburgh and is confident it is complying with contractual obligations.

The row has escalated in recent weeks with the dispute spilling over into Scotland's World Cup plans as the two parties argued over the release of players for international training.

Carruthers became increasingly vocal after his brother Alex quit as chairman in frustration over the SRU's stance.

While he appears determined not to back down, he has repeatedly made offers to enter into formal talks with lawyers.

And what appears to be his last throw of the dice to avoid a damaging court case is his bid to involve members of the Scottish Rugby Council in questioning McKie and his close advisers. The club statement said: "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."

The council incorporates various representatives of the game from Premiership Division One to schools rugby, and is chaired by SRU president George Jack.

Some of these representatives also sit on the SRU board, but the likelihood of them getting involved in a legal dispute over money is low.

The SRU executive is likely to fight Edinburgh's legal challenge and weekend reports claimed senior officials had decided to try to take back the club they sold to Carruthers a year ago by counter-claiming a breach of contractual obligations.

Edinburgh yesterday outlined their claim, which will be delivered after an accountancy report is finalised. The club said: "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."

This article was posted on 18-Jul-2007, 12:06 by Hugh Barrow.