At a time when hopes were rising for a negotiated settlement on the future of European Rugby, things seem to be heading in the wrong direction.
In a statement issued last night it was revealed that the directors of European Rugby Cup Limited voted unanimously to postpone all decisions including the release of further instalments of ERC’s distributable central revenues to the six shareholder countries until 19 February next when the Board will meet again to reconsider the issue.
The company would normally make five payments to the clubs participating in the Heineken and Amlin Cups from money received through commercial agreements including sponsorships and broadcasting fees.
The second payment for this season is now overdue and will put pressure on Leinster, Munster and Ulster who remain in the main competition as well as on Connacht who just missed out. The first payment was made last October and amounted to a total sum of €15 million so this will leave a major hole in the funding of the sport.
The statement went on to explain that “the vote to postpone any decision followed preliminary advice received by the Board, and was taken in the best interests of the company after lengthy discussions.”
“The Board agreed unanimously that further detailed legal and other professional advice was necessary in order to facilitate the ongoing discussions in relation to the future of European club rugby tournaments and the distribution of funds deriving from the 2013/14 season.”
It is believed the advice relates to liabilities the company may be face with if it loses the right to organise European Rugby tournaments next season. ERC holds the contract with Sky Sports for coverage of the Heineken Cup. Rival broadcaster BT Sport has a similarly ‘exclusive’ deal for European competitions involving the English Premiership teams.
And it used to be all about what happened on the field of play…
