Italian concerns delay ratification of new European Cup

Italian concerns about finance have held up the signing of an agreement over the tournament that will replace the Heineken Cup from next season. A media release was drafted to be sent out today only to be delayed by at least 24 hours.

The issue the Italian Rugby Federation wants sorted out before committing to a tournament expected to be called the Rugby Champions Cup concerns the RaboDirect Pro 12, which it has agreed to continue playing in after protracted negotiations.

The federation had threatened to pull out of the Pro 12 after four years because it was no longer prepared to pay €3m a year for the privilege of being a member. It will no longer have to do so but before it is able to share in the proceeds of the tournament it has to contribute to the turnover through a commercial deal.

The Italians fear that, with the profits from the new European tournament to be split equally between the three leagues that supply teams to it instead of the system in the Heineken Cup which gives the greatest proportion to the Pro 12, they may be worse off.

The board of European Rugby Cup Ltd, the body that has run the Heineken Cup since its inception in 1995, met in Dublin, 24 hours after the six unions involved in the tournament had gathered. The company will be wound up, although that process will not begin until the end of the season. There are three rounds of the Heineken and Amlin Challenge cups still to be played.

Fears that individual directors could be sued if ERC was wound up with contracts outstanding have receded with BT Sport and Sky close to reaching agreement over shared coverage of the Champions Cup. Money that has been withheld from teams since January to give the board insurance is expected to be released.

The new tournament will be based in Switzerland rather than Dublin and will be run on a day-to-day basis by a four-strong executive committee made up of a representative from each of the three leagues and an independent chairman. There is unlikely to be a title sponsor with the Uefa Champions League model instead being replicated.

The French and English leagues will each provide six clubs to the 20-strong top tournament, which will be supplemented by a Challenge Cup and a competition for sides in the emerging nations in Europe, with the PRO 12 supplying seven. The final position will this season be decided by a match between the seventh teams in the Premiership and the Top 14, but in the future two Pro 12 sides will join the play-off process.

Guardian Service