EDINBURGH EVENING NEWS REPORTS

BILL LOTHIAN
ENTREPRENEUR Brian Kennedy today revealed that a heavy workload had caused him to reluctantly sever ties with Scottish Rugby's board of directors.

Edinburgh-born Kennedy, who owns Sale Sharks, is standing down at the annual meeting in June with ex-internationalist and businessman Andy Irvine being tipped to succeed him.

Kennedy said: "I live in England and my job involves a lot of flying arADVERTISEMENTound the world. You have to be absolutely committed to carry on doing a job in Scottish Rugby and this is the right time for me to step aside.

"I look forward to returning to Murrayfield in my kilt rather than a suit after having a pint across the road with other fans."

While downplaying his own contributions – "my involvement was often at the end of a phone for those meetings which planned strategy and required common sense decisions" – Kennedy said the financial landscape had been transformed since joining the board in 2005.

"I don't think HBOS would ever have let Scottish Rugby go bust but it was heading in that direction with debts of £24million," said Kennedy.

It is now officially estimated the overdraft stands at £16m.

Kennedy, who set up the Weatherseal Group in 1989 before expanding it with the acquisition of several companies to form a £250m turnover group within the home improvement industry, added: "When a new team headed by Gordon McKie (chief executive), Allan Munro (chairman) and Eamon Hegarty (financial director) went in they took over a financial mess. Commercially, things were very poorly run. They have turned things around. I'd have any of the guys who did that in my companies and in Gordon McKie, there is the best chief executive I've ever worked with and there have been a few. Sport is about trophies as well as balance sheets but the first rule of business is to stay in business. "Matters can go on a dangerous spiral where if you are losing money you have to borrow and to service that borrowing you pay interest.

"Now the big challenge is to achieve reasonable success on the field. That means creating enough talent in the sport from grass roots that comes right through to the international team."

Asked about possible conflicts of interest with owning a team in the English Premiership compared to the centrally run Scottish professional teams, Kennedy rejected the suggestion.

"When I heard that said we used to sit around the boardroom table and laugh because the right hand always knew what the left hand was doing.

"I was brought in to bring an understanding of the dynamics required at a Premiership club." As for coming under any pressure in England because Edinburgh and Glasgow are centrally funded in a way Guinness Premiership clubs aren't, former Tynecastle High School pupil Kennedy was equally dismissive.

He said: "The last time I was at a meeting of the English Premiership clubs was 12 months ago.

"I'm an investor which is the way I work. Sale's chief executive goes to all these meetings."

Despite standing down Kennedy is adamant he will not be lost to Scottish rugby if required.

"I'm available if required on an advisory or consultancy basis," said the one-time Inverleith rugby club player.

Meanwhile, the AGM will also seek to update bye-laws including removing Players Association representation from the SRU Council. Since being set up, the Council has had no player representation due to Association secretary Jim Hay refusing to sign a confidentiality agreement.

Hay said today: "I've not attended since 18 months ago when Gordon McKie refused to enter the room if I was sitting at the table because I hadn't signed the agreement."

An SRU spokesman distanced McKie from Council policy- making, saying: "It is the Council's decision that members sign a code of conduct, as required under SRU bye-laws and approved by clubs."

Hay recalled: "I had to leave but I knew what was to be discussed anyway and wasn't going to talk out of turn."

Hay claimed that, while players should be represented, distinctions had to be drawn.

"It always struck me the players' rep slot was designed to cover everyone but there is a big difference between somebody earning their living through rugby and the amateur game.

"The latter are represented anyway by club reps."

This article was posted on 14-May-2008, 13:09 by Hugh Barrow.