SRU Refutes Insolvency Claims

The Scottish Rugby Union has dismissed claims from club franchise Edinburgh that
the governing body is close to insolvency and could be forced to sell
Murrayfield stadium.

The SRU, which has been in dispute with Edinburgh since the franchise was
taken away from the governing body’s financial control earlier this year, has
defended its financial position.

SRU president George Jack wrote an open letter to member clubs reading: ‘I
would ask you to challenge such allegations wherever you come across them.

‘Our chief executive, Gordon McKie, informed us at our recent AGM that the
SRU’s 2007 financial statements will show a trading profit, albeit before any
provision required for the closure of the Border Reivers.

‘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
very considerable asset backing in the form of our land at Murrayfield.

‘Therefore, I would suggest that you treat any reports to the contrary with
the contempt they deserve.’

Edinburgh’s new owner Bob Carruthers took charge of the club last year on a
franchise basis, signing a five-year contract to run the team but has since been
in dispute over a claim that Edinburgh is owed a substantial six-figure sum by
the SRU in overdue Magners League and Heineken Cup match payments.

In the letter, Jack stressed that the SRU had ‘explored every avenue’ in an
effort to avoid a courtroom confrontation.

With Edinburgh struggling to continue without an SRU payout and the governing
body having already closed down the Border Reivers franchise, Scotland has only
one professional rugby franchise left in Glasgow.