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Will WRU go back to nine sides?

30.1.2003

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[icWales] WELSH rugby's future could rest on legal brinkmanship and how David Moffett responds to it during another exhaustive round of meetings today.

Swansea and Pontypridd last night made it clear that while they might not want to take legal action against the WRU, they could be left with no choice because of obligations to their shareholder members and fans.

Whites money-man Robert Davies and Sardis Road chief executive Gareth Thomas yesterday stressed they would only reluctantly follow that path.

Davies said, "I would like to emphasise that when our chairman, Roger Blyth, said we could consider legal action, he also pointed out that we have a duty of care to our shareholders.

"As individuals I, Mike James and the rest of our directors would be reluctant to take legal action and sue the WRU.

"Being a director of a company puts people in difficult situations at times. We wouldn't want to take legal action, but might have to."

Ponty's Thomas backed up Davies, saying, "Directors of companies have that duty of care to shareholders and if they do not fulfil their obligations can find themselves being sued by the shareholders."

Davies also countered the basis on which Llanelli chief executive Stuart Gallacher rejected any proposed merger with Swansea.

Gallacher said, "Going into a 50-50 partnership with Swansea would weaken us.

"There is no way we want to take on their debts."

Davies said, "Swansea is not in debt. There is a shortfall between income and expenditure which I and Mike James make up and that is happening at other premier clubs."

 

              

 

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