Agreement reached on future of European rugby

The two-year deadlock on the future of top-flight European rugby is over and Bill Beaumont has hailed Ian Ritchie as a vital peace broker between the parties involved.

The European Rugby Cup will launch next season and will be run by the new Swiss-based European Professional Club Rugby (EPRC).

A heads of agreement on an eight-year deal was signed on Thursday (10th April) following months of wrangling over the final details.

The new 20-team tournament will replace the Heineken Cup with revenue distributed equally across Europe's top nation.

Heineken Cup governing body European Rugby Cup (ERC) will now be disbanded at the end of the season.

Ritchie convinced broadcasters Sky and BT Sport to forego the law courts and agree a four-year rights-sharing deal that brought the impasse to an end.

RFU chairman Beaumont lauded Ritchie's role in helping cool relations between rivals BT and Sky.

"The RFU, and in particular Ian Ritchie, has invested significant time over the last few months in helping to find a solution to a problem that at one stage looked difficult to solve," said former England captain Beaumont.

"We are very pleased that the challenges off the pitch are concluded so we can enjoy the joys of the game on it, creating more unforgettable memories for players and fans alike.

"The benefits will be seen far and wide, from the clubs to the supporters, sponsors and everyone who has followed the fabulous mix of high class rugby and good natured rivalry - all played out in many spectacular towns and cities in Europe."

The English and French clubs gave notice on the previous ERC agreement and the Heineken Cup two years ago, saying they would quit the competition at the end of this season.

They cited grievances over qualification and distribution of revenue which they deemed irreconcilable, inciting a rift that grew over time.

Premiership Rugby then signed an exclusive broadcast agreement with BT Sport, including the rights to screen a new European competition to replace the Heineken Cup.

Sky claimed they already held the future rights to the competition and a protracted legal battle threatened to carve up European rugby.

However, RFU chief Ritchie stepped in and successfully convinced the parties to share out the benefits.

BT and Sky have now agreed a four-year rights-sharing deal with both parties admitting compromise was in the best interests of all concerned.

"The game of rugby had to come first and both companies have recognised that by showing a high degree of maturity and flexibility," said BT Sport director Simon Green.

And Sky Sports managing director Barney Francis added that the deal "offers clarity for European rugby".

"This is a good day for rugby," said Francis. "It enables clubs to plan for the future."

ERC chief executive Derek McGrath has confirmed he will stand down in October and will not seek a new role with new governing body EPCR.

On the field, allied to a second tier Challenge Cup, there will also be a new, third-tier qualifying competition.

Clubs from the lesser-ranked leagues in Europe and possibly some national sides, will compete in the Qualifying Competition, bidding to win a place in the Challenge Cup.

The top six Premiership and Top 14 finishers this season will qualify automatically for next season's Champions Cup, along with seven teams from the Pro12 - the leading side from each competing nation (Ireland, Italy, Scotland and Wales) and the next best three sides on merit.

The final place will be taken by the winner of a play-off between the seventh-placed English and French sides, with the exact details to be confirmed.

Premiership Rugby chief executive Mark McCafferty said this was a "historic day for European club rugby".

"The parties have worked hard to get to this point and the uncertainty is now over," he said.

"We still have a great deal to do to ensure both competitions fulfil their ultimate potential.

"Clubs in all three leagues are now battling for qualification and it is only just over five weeks until the play-off for the final place."