ERC meeting unlikely to come up with new Accord

THE VARIOUS stakeholders of ERC will convene at a Dublin hotel this morning to begin what is liable to be a lengthy and potentially acrimonious process toward agreeing a new Accord to replace the existing one which expires in 2014.

This is not an ERC board meeting per se, with ERC merely facilitating today’s coming together of all vested interests in the Heineken and Amlin Cups, but is largely made up of the same parties, namely representatives from the six unions or federations as well as representatives from the English clubs (Premiership Rugby), the French clubs (Ligue Nationale de Rugby) and the Welsh regions (Regional Rugby Wales).

The French clubs, through the vice-president of the Ligue Nationale de Rugby, Patrick Wollf, have set a deadline of “this autumn” to agree upon a new Accord, but that seems highly unlikely given the events of last week, when Premiership Rugby announced a four-year deal worth £189 million (€234m) with BT Vision for rights to the Aviva Premiership and, from 2014 onwards, matches involving English clubs in any European competition.

As has been the case for much of the last week therefore, it is likely that their chief executive, Mark McCafferty, will be holding court, not least as all others present will be keen to ascertain the finer details of this much trumpeted but controversial deal, and “mainly what part of the contract is dedicated to the Heineken Cup and what types of TV rights have been sold”, according to Wolff. “Without this information, which we haven’t been given, it is difficult to have an accurate opinion.”

Complicating matters further is that both ERC and the RFU dispute the legality of Premiership Rugby’s deal with BT, while McCafferty and co likewise dispute the legality of ERC’s four-year deal with Sky, which is rumoured to be worth around €70 million over four years, from 2014 onwards.

The Heineken Cup has often been the battleground on which other political disputes have been fought, usually internal English and French rows. The English, along with the Scots, didn’t participate in the inaugural Heineken Cup, while the English boycotted the 1998-99 tournament and have twice threatened to boycott on other occasions.

Back in January 2007, it will be recalled, the LNR President Serge Blanco announced his organisation’s “non-reversible” decision to withdraw from the Heineken Cup, which prompted the English clubs to follow suit. But, reputedly, after intense lobbying by the IRB chairman Syd Millar, a new Accord was agreed one hour before the May 2007 final when Wasps beat Leicester.

Envious of the less competitive qualifying demands of the Pro 12, and most probably of five Irish wins in the last seven years, the English and French clubs have both called for a reduction from 24 to 20 teams in the Heineken Cup, with qualification limited to the top six from the Pro12, Top 14 and Premiership. The Celts and Italians would be against that, but are liable to accept some form of compromise in qualification and format, including a French desire to have the Heineken Cup final played in April and so not to be compete with their expanded Top 14 finals.

Back in 2007, three English teams made the semi-finals as a precursor to that all-English final, and as with the all-French decider in Paris in 2010, this was hailed by Martin Johnson, Lawrence Dallaglio and many others as evidence of how the more competitive English and French leagues, complete with relegation, was a reason for their “dominance”. Not much has changed in format or qualification since then.

But this is more of a Euro dispute, along Anglo/French v Celtic/Italian lines. Judging by comments in the English media, their club owners are particularly peeved with a basic financial share out, which grants almost 25 per cent each to the English and French clubs (approximately €10 million apiece) while the three Celtic Unions have an equally share of half that, roughly €5 million, and the Italians slightly less.

But whatever the finer detail of the financial, television, format and qualification process of the ERC competitions, history shows us that today’s meeting is liable to resolve very little.

THORNY ISSUES: English and French playing hard ball

Participation Dividend.

Any reduction in the participation of the Celtic and Italian sides, along with any increase in the Anglo/French numbers, would also increase the latter's joint take from the basic distribution and the meritocracy payments.

Last season, it is believed that ERC generated around €52 million, and aside from the estimated €6.3 million meritocracy payments, the exact breakdown of the distribution has never been divulged.

But, after ERC's operational costs, of the remaining €40 million, it is understood that English-French axis takes almost half (circa €10 million each), with the other half, 13 per cent or so (ie €5 million-plus) divvied up equally between the three Celtics and slightly less for the Italians.

With 12 and 14 clubs in their organisations, the French and English clubs will argue for a bigger slice of the financial cake.

Format/Qualification.

The English and French want a reduction from 24 to 20 participants, with the shortfall coming entirely from the Celtic/Italian bloc by dint of the top six in the Pro 12 (along with the top six, as now, from the Top 14 and Premiership) as well as the winners of the Heineken and Amlin Cup. The French also desire an earlier Heineken Cup final, so as not to cut across their expanded Top 14 play-offs.

The Celts and the Italians may accommodate the latter, but would not like to see a reduction and thus a change in the format which has worked for the last 12 seasons. They are, apparently, willing to compromise, perhaps reducing the Pro 12 to eight automatic qualifiers.