EDINBURGH RUGBY STATEMENT - 17 July 2007

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.