RFU STATEMENT – EUROPEAN RUGBY CUP LTD (ERC)

By RFU Press Office 7/11/06
November 6 2006

RFU STATEMENT – EUROPEAN RUGBY CUP LTD (ERC) The RFU Management Board has now agreed its position regarding the draft new shareholders agreement for European Rugby Cup Ltd (ERC) covering the period 2007/08 to 2011/12. 

RFU STATEMENT – EUROPEAN RUGBY CUP LTD (ERC)

 

The RFU Management Board has now agreed its position regarding the draft new shareholders agreement for European Rugby Cup Ltd (ERC) covering the period 2007/08 to 2011/12.

 

RFU Chief Executive, Francis Baron OBE said “We are committed to working closely with Premier Rugby Ltd and all our partners in ERC to develop and improve the commercial and financial returns from the Heineken Cup. ERC produce an excellent tournament each year and we are confident we can build on the success so far generated”

 

The RFU Management Board has agreed the following position in respect of the sharing of England’s entitlements under the new shareholders agreement as follows

 

§      The 5 ERC Board votes available to England will continue to be split 2.5 votes to the RFU and 2.5 votes to PRL;

§      England’s allocation of 2 directors on the Board of ERC will continue to be split 1 director for a PRL nominee and 1 director for an RFU nominee;

§      The RFU will continue to pass 100% of England’s share of ERC revenues to PRL without deduction;

§      The RFU will support PRL in seeking additional club representation on the key ERC operating committees;

§      The RFU will continue to cast its votes on the ERC Board in support of all PRL proposals on commercial and financial matters aimed at improving the business success of ERC;

§      The RFU will be seeking PRL’s confirmation that they will continue to cast their votes on the ERC Board in support of all RFU proposals on governance and regulatory matters in respect of ERC and its competitions;

§      The RFU has agreed to the proposed increase in the shareholding of Italy to 16.67% placing it on the same basis as the other countries. The RFU will continue to hold the 16.67% of the share capital attributable to England.

 

RFU Chairman of the Management Board, Martyn Thomas said “The RFU hopes that the new shareholders agreement can now be swiftly put to bed so that the Heineken Cup can continue to enjoy further success in the future, which will benefit all parties.”