Warning to Euro rebels

Apr 17 2007 Staff Reporter, Western Mail

THE Rugby Football Union have written to Premier Rugby and the chairmen of all 12 Guinness Premiership clubs highlighting the stark legal implications of their Heineken Cup boycott.

The leading clubs in England and France voted not to participate next season in a row with the RFU over shareholding and the voting rights of European Rugby Cup Ltd.

If carried through, the boycott of the top English and French clubs will be a hammer blow for the four Welsh regions who stand to lose a minimum of £500,000 each.

But Twickenham's top brass warned the Premier clubs that failing to play in the Heineken Cup would invalidate the Long Form Agreement, the blueprint for professional rugby in England which runs until June 2009.

RFU chief executive Francis Baron also stressed the clubs would be in breach of contractual obligations with sponsors Heineken and broadcasters Sky, leaving them open to potentially expensive litigation.

Baron said, "The whole of the Long Form Agreement is actually conditional upon the participation of the clubs in Europe.

"If the clubs do not participate in the Heineken Cup then the Long Form Agreement itself could fall away for the balance of the two years outstanding.

"Clearly Heineken extracted certain undertakings from the participant clubs prior to signing that agreement.

"With the Sky deal, similar provisions apply. Premier Rugby approved the ERC Sky deal through to 2010. Sky believe they have the commitment of Premier Rugby to compete.

"If the clubs do not compete in the Heineken Cup then both Heineken and Sky have legal and financial redress with regards to those contracts.

The RFU letter requests the clubs reconsider their decision and Baron insists the union are not being confrontational.

"The key thing here is that we do not wish to see this matter proceed to litigation in any way, shape or form," Baron said.

"This matter has to be settled within the rugby family with common sense prevailing."

The six members unions of ERC agreed last week that next season's Heineken Cup competition will go ahead, with or without the top-flight teams from England and France.

Both Heineken and Sky are expected to stick with the tournament, in whatever guise it is played next season, but are known to be watching developments closely.

They have the right to terminate, or renegotiate their deal or even seek damages if they believe an agreement has been breached.