SRU SEEK INVESTMENT TO COMPETE WITH ELITE
The SRU have upped their efforts to secure private investment at both Edinburgh and Glasgow Warriors in an attempt to make them more competitive with cash-rich sides in England and France. The governing body, who deny that they would sell either club at this stage, admit that no potential investors are waiting in the wings at present. But in the event that someone would be interested in taking a minority shareholding, they have called a Special General Meeting of member clubs at Murrayfield on Friday, October 28, in order to change the constitution and allow any future investment to go through smoothly. The search for new revenue streams comes after a warning from SRU chief executive Mark Dodson that Edinburgh and Glasgow, who cost £8million each a year to run, will struggle to keep their best players in future because of lucrative offers from English and French clubs who have become rich off the back of multi-million pound television deals. With the Scottish clubs unable to compete with wealthy rivals, it appears increasingly likely that top players such as Stuart Hogg of Glasgow and WP Nel of Edinburgh will be lured away. The SRU have already allowed a number of big names to leave Scotland before the end of their contracts, with perhaps the most notable being David Denton’s move from Edinburgh to Bath in return for a compensation payment. The same happened when Racing 92 of Paris bought out the final year of Leone Nakarawa’s contract at Glasgow Warriors. Dodson said: ‘It has been well documented that we face an increasing challenge to compete in this rising market. At this year’s AGM, I outlined that change would be necessary and I want us to be proactive and early to market in order to attract potential investors. ‘We have developed two strong clubs in Glasgow and Edinburgh that still have plenty of scope to grow and be more successful, which can only be attractive to outside investment. ‘While we have made great strides in generating record revenues in recent years, we also need to ensure we can fulfil and enhance the support available to our domestic game. ‘The history of rugby in Scotland is characterised by a willingness to make bold decisions. We have to be inventive and innovative as we seek new income streams that will enable us to guard our ongoing investment in the domestic game. ‘It is increasingly clear that we must look at all options in order to attract more external funding. The board, council and I now all seek the support of our members to proceed to help us look to secure further investment in our great sport.’