Rugby is left watching and waiting for crunch time

TO running, passing, tackling and all those traditional rugby skills will soon be added another thanks to uncertainties spawned by the credit crunch. Leaping. Into the unknown.

Of course, when the economic downturn begins to spread from Wall Street to Main Street the oval ball game will be far from immune.

But, with rugby so heavily connected to the banking sector through sponsorships is it any wonder that, increasingly, eyes are turning in the direction of Murrayfield, Twickenham, the Millennium Stadium et al for indications as to how any storm will be weathered?

And that's not the only concern. As Stephen Morrow, Head of Sports Studies at the University of Stirling, puts it: "Across sport there are very high levels of indebtedness. Certain leeways have always been given to sport because, well, it's sport.

"Expect that to change with banks looking ever more closely at how sport can get out of that debt."

Could there soon be another Third Lanark, the football club forced into closure during the early 1960s?

"I think there is a good chance there could be casualties and there might have to be some restructuring across sport," admits Morrow whose background is in accountancy and finance and who has written several books on the financial aspect of sport.

So far as rugby sponsorships go, institutions such as the Royal Bank of Scotland whose, £4million annual commitment to the showpiece Six Nations Championship ends next year, and Bank of Scotland, whose name is linked to Scotland's forthcoming Autumn Tests against New Zealand, South Africa and Canada, are remaining tight-lipped on future plans.

Almost certainly, though, any future sponsors are going to drive harder bargains.

"It will not be as simple as saying deals will be knocked on the head but there will be renegotiation and deals on offer will be less than in the past," says Morrow.

Against that background, if the rugby authorities are not actively looking around for alternatives at this moment then they would be in dereliction of duties to the sport. Clearly, though, it is not a time for rocking any boats.

A spokesman for Scottish Rugby contented himself with remarking: "We have a varied and balanced portfolio of sponsors and partners."

And Six Nations chairman David Pickering has been quoted as saying: "It is a case of waiting to see what happens and we are not going to put a timescale on this. These are difficult times economically and sport is not immune to what is happening but we are reasonably confident in the game that we will continue to arrange good commercial deals because we have a very strong product and faith in those negotiating the agreements."

Nevertheless, David Glenn, a partner in accountancy firm Price Waterhouse Cooper, has claimed there would "definitely be an impact" because "sport and business are so intertwined."

Mr Glenn, author of the Financial Review of Scottish Football, predicted that sports clubs could suffer because of the collapsing of land deals and from downturns in three main areas of income prompting in some areas, such as rugby, amalgamations. These are monies generated by fans through season tickets etc, media rights and corporate deals.

"Most immediately at risk is corporate hospitality," Glenn claims. "That is discretionary. It's nice to do. You don't have to do it. Advertising is done for a purpose to sell to a mass market.

Mr Glenn said eventually satellite television subscriptions would also take a hit prompting further problems for sport. "A lot of people watch sport, which isn't going to dry up. The issue will be when they come to be renewed."

For sport – and rugby in particular – though, it is not all doom and gloom according to sports management consultant Brian Samson, from Edinburgh.

Samson, who previously worked for sportscotland brokering sponsorships but is now employed by Sports Tayside, is convinced that sport remains an ideal vehicle for promoting products. "Sports sponsorship is a good way of getting your target market with sniper-like accuracy – provided the market is well researched.

"I would argue that the RBS Six Nations is a particularly good example of outstanding value for money because of the audience that is reached in comparison with other mediums.

"But, inevitably, companies will come under pressure to drop stuff. Some will perceive sports sponsorship to be an expenditure that can be done without but it is a very effective and what it will come down to is how well the case for sports sponsorship is argued."

Meanwhile, the people at the sharp end of sport – the participants – appear to be braced for changing circumstances.

Fergus Thomson, the Scotland hooker, admitted: "When it comes to contract negotiations and there is not enough money coming into the club they might not offer you the money you want."

Picking up on that message Jim Hay, nominal secretary of the Scottish Professional Players' Association, which has foundered in recent times, believes those eligible for membership should be thinking afresh about long-term planning in a career which is ultra-precarious in comparison to many.

"Whether it is through the players' association or a fancy lawyer there has probably never been a greater need for players to be considering entering into negotiations collectively in a way that hasn't yet happened in Scotland," said Hay.