Representatives of the four home unions will meet in London tonight to hear more about Dr Tony O'Reilly's proposed cash windfall for rugby union. The former Ireland and British Lions wing, has kick-started plans to inject much-needed funds of anything between £250 and £500million. It could see England, Scotland, Wales and Ireland collecting upwards of £100m each, therefore providing financial security the sport has lacked since turning professional more than four years ago.
Should the money become available, it could be used in each of the countries to pay off existing debts, improve funding to clubs and boost grassroots development. The so-called 'Lions Bond' initiative would see cash released by banks, possibly before this season's inaugural Six Nations Championship ends, on a projected profit from the home unions' commercial rights, sponsorship and television income. A presentation will be made by O'Reilly's investment bankers, Warburg Dillon Read, outlining how the plan could work.
It's on similar lines to the "securitisation" scheme used to raise the best part of a billion pounds by Formula-1 guru Bernie Ecclestone. In fact, it's rumoured that Ecclestone has set aside his own plans for a rugby "super league" to leave the way clear for O'Reilly's so-called "Lions Bonds". So far the plans have received a cautious welcome from the Irish and English unions. Investment bankers Warburg, Dillon, Read will present more detailed proposals early in the new year.
The English and Scottish Unions have already incurred major debts in redeveloping their own stadia and all the countries could do with a lot of money for clubs and representative sides as they try to close the gap with the Southern Hemisphere powers.
