President George Jack has greeted with "contempt" Edinburgh claims that the Scottish Rugby Union is insolvent and will be forced to sell Murrayfield.
And he said that the governing body would vigorously defend its position should Edinburgh force their dispute to be settled in the courts.
The SRU president's words came in an open letter to member clubs.
"I would ask you to challenge such allegations wherever you come across them," he wrote.
"Our chief executive, Gordon McKie, informed us at our recent agm that the SRU's 2007 financial statements will show a trading profit, albeit before any provision required for the closure of the Border Reivers.
"Our borrowings are down almost £2m to £19m.
if Edinburgh decides to press its claims through the courts, we will, albeit with a heavy heart, defend our position vigorously
SRU president George Jack
"We have considerable headroom in our borrowing facilities, we have the full support of our bankers and we have very considerable asset backing in the form of our land at Murrayfield.
"Therefore, I would suggest that you treat any reports to the contrary with the contempt they deserve."
Bob Carruthers took charge of Edinburgh last year on a franchise basis, signing a five-year contract to run the club previously under SRU control.
The dispute centres on Edinburgh's claim that they are owed a substantial six-figure sum by the SRU in overdue Magners League and Heineken Cup match payments.
Jack stressed that the SRU had "explored every avenue" in an effort to avoid a courtroom confrontation.
"Your elected representatives on the Scottish Rugby Council have been kept fully up to date with regards to the dispute ... and have reported to the council that they are satisfied that the correct strategy in the best interests of Scottish - and Edinburgh - rugby is being pursued," he said.
"Those of you who know me will appreciate that the welfare of the players has throughout been at the forefront of my concerns.
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"I am determined that, whatever happens with Edinburgh, the impact of the current dispute on the players will be minimised."
The dispute had escalated when Carruthers withdrew his 12 Scotland internationals from a week of World Cup training last month.
"As we have continually reminded the new Edinburgh owners, the agreements between the union and Edinburgh Rugby form a binding contract and we expect Edinburgh to honour its obligations," added Jack.
"This means, for example, that we expect Edinburgh to release players for Scotland duty.
"If they choose not to do so, we will defend the union's position and, as necessary, protect our rights in the best interests of the game.
"Ultimately, this means that, if Edinburgh decides to press its claims through the courts, we will, albeit with a heavy heart, defend our position vigorously."
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Tuesday, 4 September 2007
Posted by Debtsgone LTD at Tuesday, September 04, 2007
Labels: SRU dismisses insolvency claims
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