The recent rows involving the Edinburgh club will make it harder for the Scottish Rugby Union to make a profit in the present financial year, Gordon McKie, the union chief executive admitted yesterday. But he said the exercise, while “unfortunate”, had to be dealt with and he has not totally ruled out the possibility that Stephen Larkham, the Australia fly half, may still end up at the club next season.

“He entered into a conditional contract with Edinburgh Rugby Ltd so it is a matter between him and them what is going to happen to that contract,” McKie said. “Until that is resolved we can only say that Stephen Larkham playing in Scotland wouldbe attractive. We can’t get into a meaningful discussions with him until the contract with Edinburgh is clarified. We await developments.”

The whole issue has been clouded by, of all things, the recent hurricane in the Caribbean where Bob Carruthers, who owned Edinburgh until a fortnight ago, was on holiday and having trouble with communications because of the weather.

Speaking at the launch of an extended deal with the Bank of Scotland Corporate to sponsor future autumn internationals — with New Zealand, South Africa and one of the North American teams likely opponents next year — McKie was in bullish mood about the state of the game. “There has been a lot of good stuff going on, and there are more sponsors to follow,” he said, adding that a new shirt sponsor — to follow The Famous Grouse, whose deal effectively ends tomorrow after 17 years — should be imminent.