Italian plans to enter Magners League collapse in cash row

CELTIC RUGBY, the organisers of the Magners League, last night confirmed the competition will not be expanded to include two Italian teams, comprised of home-based players, next season.

Financial agreements were understood to be the major stumbling block with the Italian Rugby Federation (FIR) refusing to agree to a Celtic Rugby request for a €3m entry fee along with a demand for a slice of TV revenue.

In a statement issued last night, the board of Celtic Rugby Ltd expressed disappointment at the development.

“In March 2009, Celtic Rugby agreed in principle to the possible enlargement of the Magners League through the addition of two Italian teams, subject to certain conditions being met in terms of commercial, finance, playing standards and playing/spectator facilities. Celtic Rugby engaged Deloitte to conduct a comprehensive “due diligence” process to satisfy the shareholders and existing Magners League clubs of the feasibility, financial and otherwise of this structural change to the Magners League and in particular to ensure there was no resulting net cost to the existing 10 clubs.

“Following an extensive process that involved consultations with FIR and its nominated clubs, the existing Magners League participants and Celtic Rugby, Deloitte provided a report to Celtic Rugby in December 2009, clarifying the various parameters that had been met and that would need to be met.

“Despite extensive discussions between Celtic Rugby and FIR in December and January, it has not been possible to reach agreement by the deadline of end January 2010, clarity being required at this point in order to plan not only the Magners League but also Heineken Cup and Amlin Challenge Cup for the 2010/2011 season.”

However the FIR president Giancarlo Dondi hit back last night. “What I am most upset about is these requests only emerged in the final phase of negotiations. If we had been made aware of the Celtic League board’s economic demands before, we would have avoided a long, laborious process. This decision must in no way hold back the development of our country’s rugby.

“If the board does not have a rethink, we will meet our set goals with seriousness and perseverance anyway.”