RFU statement on ERC Ltd

Discussion in 'European Champions & Challenge Cup' started by Bullitt, Mar 23, 2007.

  1. Bullitt

    Bullitt Guest


    The Rugby Football Union Management Board has considered the latest proposal from Ligue Nationale de Rugby (LNR) regarding England’s shareholding in European Rugby Cup (ERC) Ltd.

    The Board unanimously rejected the proposal as it did not provide for a long term solution to ERC’s current difficulties.

    The Board also felt it was inappropriate for organisations in one country to seek to influence negotiations between parties in another country.

    Martyn Thomas, Chairman of the RFU Management Board, said: “Our agreement with PRL (Premier Rugby Ltd) still has two years to run and under that agreement they have committed to participation in ERC competitions. We have been in negotiation with PRL for some months on a new, comprehensive long term package for professional rugby and have reached Heads of Agreement stage. It is wholly inappropriate for LNR to be seeking a voice in these negotiations.

    “We wait to hear from LNR if they are going to participate in next year’s ERC competitions. If they do not compete we are looking to the FFR (Fédération Française de Rugby) to nominate other French teams to participate and myself, Francis Baron (RFU Chief Executive), Bill Beaumont and Jonathan Dance (RFU IRB representatives) have today had a very constructive meeting with Bernard Lapasset (FFR President) and Pierre Camou (FFR Vice-President)."

    The RFU submitted to PRL a comprehensive draft Heads of Agreement on March 6 setting out a new long term financial and structural package for elite professional rugby in England, including a proposal on the future of ERC.

    The RFU's proposal is that it will continue to be the holder of England’s shares in ERC but will commit to the following:

    • Nominating the Guinness Premiership clubs to participate in ERC competitions;
    • Pay to PRL 100% of the income distribution from ERC attributable to England;
    • Allocate to PRL 50% of the votes allocated to England;
    • Allocate to PRL one of England’s two director positions on the ERC Board;
    • To cast the RFU votes in support of PRL’s position on all commercial and financial matters;
    • To request PRL to cast its votes in favour of the RFU’s position on any governance matters.
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  3. DonBilly

    DonBilly Guest

    That's funny the RFU are asking the FFR to nominate amateur Rugby teams in case the LNR confirms no Top14 nor ProD2 sides will play the European cups next year.
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