THE SCOTSMAN REPORTS
McKie gives no guarantee on future of pro teams

DUNCAN SMITH

THE Scottish Rugby Union's new chief executive Gordon McKie has wasted no time in demonstrating his intention to embark upon the job with a clean slate.

That was made clear at McKie's introductory Murrayfield press conference when he conceded no guarantees could be given that the governing body will continue to operate three professional teams.

Back in February, the SRU pledged to support Edinburgh, Glasgow and the Borders for three more years with increased funding, but yesterday McKie appeared to suggest all bets are off. This is due to the whirlwind nature of the 48-year-old Glasgow-born businessman's accession to top job and the need for him to take time in assessing the issue, but his words will create fresh anxiety in the Borders, home to the newest and most insecure of the country's professional outfits.

McKie said: "It's early days and I'm not completely familiar with the numbers vis-a-vis the pro teams - costs, revenues and so on - but that said, it's part of the business plan at this point in time that we should have three pro teams. I will be examining that in the months to come alongside the business plan, budgets and financial facilities to see where funding should be best prioritised.

"Clearly there will be competing priorities, perhaps at grass roots, perhaps in terms of making the national team more elite, but to be frank it's difficult to give a straight answer to that today. All I will say is I will be looking at all areas within the entire organisation."

The Borders side was launched in 2002 but, as the team with the smallest budget of the three, has faced a difficult infancy and has finished bottom of the Celtic League in the past two seasons. The SRU is desperate for more external cash to come in to help fund the pro teams, and McKie's predecessor, Phil Anderton, pursued a strategy aimed at eventually franchising pro teams out.

Asked if he felt outside investment into the professional sides could be secured McKie offered "a cautious yes", but added the caveat: "Our brand is battered, our image is not good, our business controls are not respected or perhaps not as robust as they should be in what is essentially a public organisation.

"If we can be seen to fix these areas then I hope that will give people the confidence to invest in the business at national, pro team and local level. But it is difficult to get people to put money in when market perception is so poor and that's a big challenge in the next couple of months for me to be ambassadorial and convey that those days are now behind us."

Earlier in the year interim SRU chief executive Fred McLeod brought relief to the Borders when he said a review by Genesis consultants "made it abundantly clear that three professional teams are central to the development of Scotland's international teams".

McLeod added: "We must demonstrate a clear commitment to our professional tier. While we remain committed to seeking external investment for our professional teams, we must also look to create a more stable environment in which they can operate."

Yesterday McKie said he could not guarantee that stability. "I can't do that sitting here today because I have been in discussions [over taking the job] for five days," he explained. "My role as chief executive means I have responsibility for driving the business forward. I'm accountable to the board and until I really get underneath the numbers I cannot give those guarantees. If guarantees have been given then clearly I inherit them but I can't say any more than that today."

Asked how much an 'inherited guarantee' is worth, McKie replied: "I can't answer that either until I look at whatever legalities lie behind those guarantees vis-a-vis commercial contracts and so on. I'm not trying to be evasive, it would just be wrong of me to give reassurance when I've only been in the job a couple of hours and indeed do not commence officially until Monday."

When that job starts the pro-team issue is just part of a wider malaise that McKie must begin addressing as the union attempts to move forward in the wake of the bitter and damaging 'civil war' which broke out at the turn of the year.

McKie has a history of going into ailing companies and reversing their fortunes, although his last posting was ultimately unsuccessful as mechanical and engineering firm Semple plc went to the wall in May, less than three years after his appointment as chief executive.

McKie sees a brighter future for Scottish rugby, however. "For many reasons the business has not been doing very well in recent times," he said. "Some of those reasons were constitutional. I'm happy to say from my discussions with [chairman] Allan [Munro] and [president] Andy [Irvine] I belive those problems are hopefully behind us. Inevitably there has also been managerial problems, where management has not been able to deal with or has not been capable to get under these issues. My job is to try and fix these issues. I don't underestimate the challenge, many would probably see it as a daunting task and I do too but there is excitement at what we can achieve.

"It is a huge opportunity and it really is one that I am very proud to have been offered."

McKie is confident he can transfer the skills he has developed in other industries to his new job. "The principles are the same," said McKie. "It revolves around people, process, business planning, implementation and control, but also teamwork. Businesses can't work properly without team spirit and my initial impressions are that there are organisational issues within the entire business that have been perhaps exacerbated by the constitutional problems, which hopefully are now behind us. Ultimately what I hope to bring is clear direction, strong leadership and common sense.

"With a combination of cost control, increased revenue and better, more consistent marketing image, we can get things moving in the right direction."

New recruit was 'rejected' because of late application

THE Scottish Rugby Union has finally got its man and Gordon McKie will officially start his new job in the hot seat on Monday. However, he was almost 'the one that got away'.

The story leading up to yesterday's unveiling of McKie is, in the words of the new chief executive himself, "a bit bizarre". Just ten days ago SRU chairman Allan Munro revealed the search for a CEO was ongoing after it was decided not to appoint any of the four-person short-leet put forward.

Munro explained: "After the meeting ten days ago I had the headhunter back in and he came with the list of applications that had been made. I came across the application from Gordon. He was rejected by the headhunter because, by the time it had come in, I suspect we were at the position when the interim board had put forward the list of four.

"Gordon is someone I have known for some time and, more importantly I've known of his reputation and his business experience. When Andy [Irvine] and I discussed the situation last Thursday, Andy followed up and made an initial approach to Gordon on Thursday evening. Things snowballed from there.

"Gordon was actually on the point of signing on the dotted line for another major Scottish company when Andy intervened. I then spent several hours with Gordon on Friday and over the weekend phone calls were made and references taken. Our nomination committee got together on Sunday night and we had several hours here at Murrayfield after which I'm delighted to say Gordon accepted our invitation. He is a wonderful appointment."

McKie revealed that the Bank of Scotland, which was familiar with his work and is the heavily-in-debt SRU's primary lender, had encouraged him to apply in June.

"I had the bank's seal of approval and they politely encouraged me to apply. I was surprised to be rejected as I felt I could do a good job. The whole thing is a bit bizarre having been told 'no' and yet now here I am."

SRU president Andy Irvine was gushing in his praise of McKie and, alongside chairman Munro, said there is now a "dream team" at the helm.

McKie may not come from a strong rugby background, but Irvine said: "Maybe that's what's been the problem in the past - too many rugby buffs and not enough guys who know about business. First and foremost this is a business.

"Gordon is not going to manipulate out of thin air a 19-stone loosehead who is going to demolish the All Blacks for us or find a winger that can put Joe Rokocoko to shame. But through time because of the structures that he puts in place and the organisational skills he brings, things can move forward. There's not going to be a quick fix on the park but there might just be a quick fix in how the place is run."

This article was posted on 10-Aug-2005, 08:33 by Hugh Barrow.