With immediate effect, Scottish Rugbys agreements with Edinburgh Rugby Limited and its holding company, Murrayfield Sport and Leisure Limited have been terminated by mutual consent.

Both Scottish Rugby and Edinburgh Rugby have agreed to drop all claims against each other and, also with immediate effect, Scottish Rugby will be responsible once more for professional rugby in the capital.

Scottish Rugby will now establish a new professional team to replace Edinburgh Rugby, which will include all existing players and the majority of the management and backroom staff.

Both parties have agreed that acting Managing Director for Edinburgh Rugby Limited, Dean Lewis, and coach Lynn Howells will not be transferring to the new Edinburgh team.

Scottish Rugby has begun the process of assessing the coaching and management requirements for the new pro team and, as an interim measure, Henry Edwards, Scottish Rugbys Head of Player Development, will act as the teams interim head coach.

Scottish Rugby also confirmed that Nic Cartwright has been appointed as Chief Executive of the new pro team and takes up his position on Monday 13 August. Previously he was Chief Executive of Harlequins Rugby League Club, having been with what was formerly known as the London Broncos since 1998 as Commercial Director, then Chief Executive. Cartwright led the Broncos through a challenging period of changes in ownership and managed their transition to Harlequins Rugby League Club, based at the Twickenham Stoop.

To facilitate the transaction, Scottish Rugby has agreed to make a settlement to Murrayfield Sport and Leisure to terminate that companys future right to be the exclusive concert promoter at the national stadium, and a further sum will be paid to facilitate the transfer of the goodwill and undertaking of Edinburgh Rugby to Scottish Rugby. Agreement was also reached on the clear understanding that Murrayfield Sport and Leisure and Edinburgh Rugby will use the settlement figure to discharge all remaining liabilities of those companies.

Commenting on todays announcement, Gordon McKie, Chief Executive of Scottish Rugby said,
This has been a challenging period for all concerned and after many months of protracted and often difficult negotiations, we have arrived at a solution both parties can live with.

From a Scottish Rugby perspective, we have always sought to act in the best long term interests of the game and our focus can now be switched fully to continuing to grow the game at all levels in Scotland. There is now the exciting prospect of two credible and ambitious professional teams based in Scotland, which will of course be very much at the heart of the national governing bodys priorities.

We have assured the Edinburgh players there will be minimal disruption to their training schedules and preparations for the new season. We also look forward to rebuilding the vitally important relationship with the teams many loyal supporters and we are seeking a meeting with them in the immediate future.

Finally, we will be contacting all relevant Edinburgh sponsors as a priority, to reassure them the capitals pro team has a solid future.

(SRU News)