RUPERT Lowe has spoken publicly about the dreaded 'R' word.

Speaking at his exclusive, £100-a-head, Chair-man's Annual Dinner at St Mary's, Lowe insisted Saints won't go into financial meltdown if the unthinkable happens and the club is relegated.

During a lively question and answer session with around 150 VIPs, the Saints chairman made it clear he remains confident Saints will avoid the drop.

But he claimed that, even if they don't, the impact will be cushioned.

Unlike clubs such as West Ham and Leeds, which struggled to cope with the financial reality of life in the Champion-ship, Saints has structured its player contracts to guard against a relegation catastrophe.

Lowe said: "Football is made exciting by the fact that there's relegation. As a club we say there is still a quarter of a season to go. We are fortunate that if we are relegated we have structured the salaries in such a way as that the pain is shared between the club and the players.

"We don't think it is going to happen but, if it did, I don't think it is going to have the catastrophic effect it has had on clubs like Leeds."

He refused to divulge the size of Saints' transfer kitty, but said they would find the players needed for next year's assault on the Premier-ship, should they stay up.

"I never speculate about what we've got - I don't think it's helpful," he said. "But, assuming we maintain our Prem-iership status, Harry as-sures me he's capable of wheeling and dealing."

In good humour, the old Etonian took the opportunity to say his unlikely partnership with Harry was strong.

"Harry and I? Every-one was dubious that we would get along but cockneys and public schoolboys tend to get along, because they are as stupid as each other."

Flanked by Matt Le Tissier and Rodney Marsh and quizzed by Jeff Stelling from TV's Sky Soccer Saturday, Lowe confirmed Glenn Hoddle had been under consideration for the manager's job when Sturrock got the push despite quitting Saints for "north London yobbos" and said he hoped to see Theo Walcott make an impact for England.

Former Man City and QPR legend and outspoken soccer pundit Marsh told Lowe he was unimpressed with the way he had handled Stuart Gray's dismissal.

"The chairman has made several mistakes," said Marsh. "First of all was Stuart Gray's sacking. Gordon Strachan was already in the stands knowing he was the manager of the team.

"But, when he signed Harry Redknapp, I was the first to say it was a great decision."

But Lowe defended himself, saying: "At the time he was there, we hadn't agreed a deal.

"No one believes that but we hadn't."