EDINBURGH EVENING NEWS REPORTS
BILL LOTHIAN


FORMER Scottish Rugby Union chairman David Mackay today laughed off the threat of legal action arising from claims he drafted an enhanced contract for ex-chief executive Phil Anderton in secret, as revealed in a report to last night's agm.

A gathering of club delegates were told of a letter relating to enhanced terms for Mr Anderton in certain circumstances not having been recorded "as having been approved at, nor reported in, the Minutes of either the PLC Board or Executive Board."

It was further stated that the gross cost of parting company with Anderton, now the chief executive of Hearts, was £404,286.

The report added: "The present Remuneration Committee brought these matters to the attention of the President, the Chairman and the Executive Board as a whole. With their approval, independent legal advice has been obtained from senior counsel and it will be a matter for future decision as to what further action, if any, should be taken by the Union." But Mr Mackay, who was dismissed in January, today hit back saying: "I have absolutely no concerns whatsoever about the suggestion of legal action."

The businessman added that he had kept then SRU President Gordon Dixon fully informed of a decision to provide what he termed "full protection under employment law" for Anderton.

Mackay said: "If the innuendo is that the General Committee did not know about Phil Anderton's contract that is true. It was for obvious reasons. Everyone is entitled to full protection under employment law and people were plotting to remove me and Phil Anderton.

"The new contract was not shared with the general committee but the President did know about it."

Anderton referred enquiries to a spokesman who was unavailable, but it is known he regards the SRU report as part of a smear campaign.

Questioned about Anderton's contract, acting chief executive Fred McLeod said he had been told by a legal representative present at the meeting to make no comment. The question came from Edinburgh representative George Jack, regarded as a key figure in the removal of the paid officials, who said: "Many will only now be understanding that there were serious worries that prompted the action taken earlier in the year in the face of one-sided media comment ignorant of the facts.

"Has company law been broken either literally or morally? If it has what is the legal advice?"

Meanwhile, Andy Irvine today began his term as the youngest SRU President of modern times by resigning a role as a media broadcaster. And Irvine, the former triple British Lion and Scottish cap record holder who defeated committee stalwart George Blackie by 107 votes to 64, made it clear he would be looking to introduce franchising of the super-teams at an early opportunity.

He said: "I see benefits from franchising because I believe there is money that can be unlocked for Scottish Rugby.

"As to giving up control, there has probably been too much albeit we have to ensure investors don't start pulling players out of national squads.

"That, however, would be self-regulating because it would be bad business by anyone coming in not to protect the major asset, which is the player."

The meeting heard that the SRU made a loss of £2.2 million for a 13-month accounting period partly due to a deficit of £500,000 through playing a Test in Glasgow against a projected profit of that sum; staging the world under-21 championships cost £250,000.

Also, steps to reduce the number of teams in BT Premiership Division One from 12 to 10 teams will be made on the basis of three teams down and one up.

This article was posted on 25-Jun-2005, 17:46 by Hugh Barrow.