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Jack enters row


THE HERALD REPORTS
Jack enters row between Edinburgh and the SRU NEIL DRYSDALE August 02 2007
The Scottish Rugby Union president, George Jack, yesterday made a belated intervention in the row between the governing body and Edinburgh when he urged the country's clubs to get behind the union in the conflict. Jack also made it clear that the organisation's chief executive, Gordon McKie, who has been criticised in some quarters, enjoys the full support of the SRU Board and Council.

The president was particularly scathing of a claim made by Edinburgh's co-owner, Bob Carruthers, that the union was "apparently insolvent" and might be forced to sell Murrayfield to service its existing debt, which is thought to be between £21m and £23m.

"I would ask you the clubs to challenge any such allegations of financial mismanagement wherever you come across them. Gordon McKie informed us at our recent agm that the SRU's 2007 financial statement will show a trading profit, albeit before any provision required for the closure of the Border Reivers," he said.

advertisement"Our borrowings are down almost £2m to £19m, we have considerable headroom in our borrowing facilities, we have the full support of our bankers, and we have considerable asset backing in the form of our land at Murrayfield. Therefore, I would suggest you treat any reports to the contrary with the contempt they deserve."

The statement leaves Carruthers isolated and one suspects he is running out of bluster. A fortnight ago, he urged the SRU Council to mediate between the union and Edinburgh, but the SRU had decided three things.

I would ask you to challenge any such claims of financial mismanagement


Firstly, they can no longer work with Carruthers, given the contradictory statements he has uttered since the dispute began. Secondly, they are not prepared to leave Carruthers in charge of Edinburgh when private soundings of the club's leading players have revealed a lack of faith in him. And thirdly, they are ready to proceed with legal action against Carruthers, confident it will be vindicated. "Over the last few months, the union has explored every avenue to avoid legal action. In entering our agreement with Edinburgh, we have offered help and practical assistance wherever possible. However, as we have continually reminded the new owners, the agreements between the union and Edinburgh form a binding contract and we expect them to honour their obligations," added Jack.

"This means, for example, that we expect Edinburgh to release players for Scotland duty. If they choose not to do so, we will defend the union's position and, as necessary, protect our rights in the best interests of the game. Ultimately, this means that if Edinburgh decide to press its claims through the courts, we will, albeit with a heavy heart, defend our position vigorously.

"I would also ask you to be aware that your elected representatives on the Scottish Rugby Council have been kept fully up to date with regards to the dispute and, indeed, the Council's representatives have seen the relevant documentation and information related to the dispute and have reported to the Council that they are satisfied that the correct strategy is being pursued. As recently as last Thursday, both your Council and the Board unanimously reaffirmed their support of the stance being taken. As your president, I fully endorse this position."

This show of solidarity will offer scant comfort to Carruthers who, in recent weeks, has seen the departure of his brother, Alex, and Graham Stirling from the Edinburgh board, in addition to the departure of the club's press officer, Iona Scott. Worse still, from his perspective, is the complete breakdown in relations with the SRU, who have carried out their threat to cut funding from Edinburgh as well as ask them to search for a new home.

At the start of the battle, Carruthers was bullish and seemingly confident he could make up policy on the hoof. By yesterday, he had returned to lamenting the impasse.

"If the SRU are not paying us the money due, then they remove any obligation on us to do all the things we should be doing in developing players, employing so many current internationals and all that," said Carruthers. "We will have to cut our cloth, according to the funds we have available and let the legal process rumble on. It is barmy, but what choice do we have at the moment?"

One clear choice is staring him in the face. He should sell his stake back to the SRU and leave them to run Edinburgh on a truly professional basis. If he doesn't have the requisite finance to make a difference - and it appears clear he doesn't - then what is the point in continuing as an oval-ball dog in the manger?


This article was posted on 2-Aug-2007, 07:06 by Hugh Barrow.

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