Another board meeting has been scheduled for 11 March however the hope is that a resolution will be reached the day before, at a crucial shareholder’s meeting (10 March).
Following this postponement of payment, after a plea for financial help from the four Welsh Regional sides on 18February to the Welsh Rugby Union (WRU), a loan was agreed. The Regions were waiting on payment of €200,000 which was due on 5 February for their participation in the European tournament. The interest free loan of £660,000 (to be shared between the four Regions) was confirmed on 18 February. This show of support to the Regions from the WRU could be viewed as a sort of olive branch following the Welsh Rugby’s own problems at present.
The Welsh sides are not the only teams angered by this postponement of payment. Premiership rugby sides are due £1.6m from the ERC that has yet to materialise. Premiership Rugby (PRL) released a statement saying, “We believe that this is a fundamental breach of both current accord and the participation agreement, and we will be taking legal advice around that.” PRL also made a statement which read: “We believe this inflames the issues we have in coming to a European solution and the next step is for Premiership Rugby to take advice to see if this action represents a fundamental breach in the contract between ERC and its clubs.“
This is only part of the problems facing the ERC as they face the threat of legal action from its very own broadcasters (Sky) who had signed a contract extension two years ago to broadcast the games. PRL has stated that it would not be competing in a European tournament unless BT Sport has the television rights.
In summary then, it is apparent that the ERC are under threats from various governing bodies over alleged contractual breaches. This will be an interesting one to watch as it develops.
Sources:
http://www.espn.co.uk/heineken-cup-2013-14/rugby/story/213647.html
http://www.theguardian.com/sport/2014/feb/19/heineken-cup-erc-six-nationss-sky-bt
Article source: http://www.irishtimes.com/sport/rugby/ucd-offers-60-point-top-up-to-attract-elite-athletes-1.1663571
Rugby Union Sports Law News 25 Feb 2014
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