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View Full Version : Edinburgh - SRU row now headed for courts



ecks tartan army
17-07-07, 05:53 PM
Today the SRU made a press release stating:



Mediation

17 July 2007

Following the continued and extensive leaks to the media of confidential information and documentation in regard to the relationship between Scottish Rugby and Edinburgh Rugby Limited, Scottish Rugby has concluded today that mediation is no longer an option.

Scottish Rugby takes very seriously any failure to abide by confidentiality agreements in regard to contracts and correspondence and believes the resulting publicity these leaks create is most unhelpful for the sport at all levels.

Various members of the Scottish Rugby and Edinburgh Rugby Boards have been in discussion since the end of last year but, despite some significant financial concessions by Scottish Rugby, agreement could not be achieved.

This, together with Scottish Rugby’s confidence in its robust contractual position, has led the national governing body to conclude that mediation will not achieve a compromise position which is acceptable to both parties.

Scottish Rugby believes that the contractual rights and obligations of both parties are very clear, and is confident that it is currently complying with its contractual obligations.


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Edinburgh Rugby Limited has since made this reply:



Statement

Edinburgh Rugby Limited makes the following statement in response to the Scottish Rugby Union’s press release of today's date.

Edinburgh Rugby deeply regrets that the SRU has rejected Edinburgh Rugby's offer of mediation.

Mediation offered the chance of a win-win outcome to this dispute and the possibility of a creative solution to the present impasse, and an agreed strategy for professional rugby in Scotland.

It is therefore a great pity that the SRU and their advisers have chosen to reject this offer.

Edinburgh Rugby's door remains open to any offer of mediation or negotiation from SRU.

However, in the absence of an offer to mediate or negotiate directly, Edinburgh Rugby will assert it rights through the courts.

There has been a great deal of media speculation about the nature of Edinburgh Rugby's dispute with SRU.

To set the record straight, a claim is being prepared in respect of shortfalls in payments due by SRU to Edinburgh Rugby, failure by SRU to comply with contractual obligations, and also in respect of a breach of warranty. The warranty claim arises because financial information provided by SRU at the time of the sale of the Edinburgh team was inaccurate and misleading. The claim will run well into seven figures.

An expert accountant report is being finalised and proceedings will be served within the next two weeks.

It is an unfortunate irony that SRU's failure to agree to a private mediation process, will result in public scrutiny of all of the contracts before the courts. Edinburgh Rugby will welcome such public scrutiny.

It is clear that litigation is not in the interests of professional rugby in Scotland, or Scottish rugby in general, and litigation should always be the option of last resort. Unfortunately, Edinburgh Rugby is left with no option, but to litigate given SRU's failure to go to mediation.

Edinburgh Rugby understands that no members of the Scottish Rugby Council, and only a few members of the SRU Board have seen the agreements between Edinburgh Rugby and SRU which are the subject of the dispute. Edinburgh Rugby calls upon the Scottish Rugby Council to review the position of the SRU executive, and persuade them to go to mediation in the interests of rugby in Scotland.


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as ive been away the last few weeks i dont know the ins and out of this row, however one thing is sure - the only winners from any court action will be the lawyers.



this whole affair has been embaresing for scottish rugby, and unfortunatly this only goes further to show how incompetent the people running the game in scotland are. If the SRU own ER money, then FFS pay up, if they dont then get round the table and make it clear to ER why they dont. The longer this affair drags on, the more it will damage the already fragile Pro game in scotland.



Also, as i understand it, if ER take the SRU to court then the SRU will automatically withdraw funding - meaning that ER will become bankrupt very quickly and Scotland is down to one pro team, and TBH i dont thing Glasgow can survive without Edinburgh. And as for the Burgees bid for a Stirling based team - why would ANY intelligent buisnessman enter into a contract with the SRU given the Edinburgh saga?



I really hope im wrong here, but this could spell the end of professional rugby in Scotland! :wah:



and on i side note, the SRU STILL havent made arengment for warriors season tickets, and trying to speak to anyone is like :wall: .