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May 30, 2006

Borders or Glasgow likely to go if no investor found

Posted by Editor on May 30, 2006 08:34 PM | 4 comments | Print | E-mail author

Gordon McKie says Edinburgh are unlikely to go if an investor doesn't come forward
One of Scotland's three professional sides could still face closure due to a lack of sponsorship, the Scottish Rugby Union has admitted.

According to BBC Sport, the SRU has received offers of investment from 11 different groups, but only four of those were realistic proposals.

Of the serious contenders, one is interested in taking a stake in the Borders, one in Glasgow and the other two say they would take any club.

SRU chief executive Gordon McKie said: "We are very hopeful that an investor can be found."

But he admitted that they could yet face a difficult decision by their self-imposed deadline of July.

Scotland's governing body had been looking at ways to stem a £23m core debt, leaving a question mark over the future of at least one of Edinburgh Gunners, Glasgow Warriors and Border Reivers.

"No decision has been made about which side could go, but it's unlikely to be Edinburgh because of the number of Scotland internationals who play for them," said McKie.

The SRU is hoping to franchise out at least one of the teams that play in the Celtic League and European competitons.

"Our budget requirement is £1m, but we would be happy to accept two minority stakes of, for example, £500,000 each," said McKie.

"Equally, if someone came along and said they were willing to give us £1.5m if we gave them control then the answer to that would be 'possibly', subject to legal advice.

"So we are amenable to any proposal in which somebody wants to own and drive a pro-team while we become a silent partner."

The SRU has set itself a deadline of the end of June to find an investor but are prepared to explore fresh avenues in an effort to keep three teams in existence.

"Option one would be to look into our budget to see if we can find the money to cover the cost there," said McKie.

"Option two would be to make one of the teams a development side, while option three would be to lose one of the teams."

The SRU chief is desperate to see all three teams invested in for the future but conceded the finance may not be achieved soon.

"It is conceivable that, in time, we will go down this path with more than one team and my view, and the board's view, is that might be no bad thing," added McKie.

"But it would be impossible to have all three pro-teams receiving outside investment in the timescale available to us.

"If we can get outside investment into one team by the end of June then that would be a good result, not because of scarcity of candidates but just because of the logistics of what is involved."

Comments
Posted by Duke on May 30, 2006 09:15 PM | Reply to this comment

Would you buy a season ticket for 2006/07?

What about all the new signings?

Posted by Parksygal10 on May 31, 2006 09:08 AM | Reply to this comment

Exactly, what would be the point of all those new signings, its just wasting time for new players, Glasgow have signed some new people, more than Edinburgh and the Borders, in my opinion that would give the advantage to Glasgow to avoid the chop

Posted by Andrew on May 31, 2006 03:06 PM | Reply to this comment

When pressed about whether one of the teams has already been identified for closure Mckie said words to the effect that no decision had been made but it was unlikely to be Edinburgh given the number of established Scotland internationals in their squad.

That remark might not cause a ripple in the rugby world at large but won't wash with fans of Glasgow or Borders. It was almost delivered in a way that the current allocation of players (please don't call them free market "signings") had just "come about" somehow.

Anyway good luck to all in a blue shirt tonight.

Posted by jimbobjim on June 1, 2006 05:30 PM | Reply to this comment

many of the struggling football clubs in england have gone down the route of "supporter trusts" - where the fans buy the club. maybe that would be a good move for Glasgow Warriors. the fans buy 51% share and get a good businessman who knows what he is doing to buy 49%.

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