as much as there might be need for such an institution, I don't believe it can be implemented. there are many aspects that would have to be considered but I guess that the funding alone will render the whole idea impossible: I don't believe that the results of the guitar/gear sale will end up nowhere near what would be required for financing of the facilities, teachers, administration, or scholarships. I know that if you take into consideration what has been offered and paid for guitars of Clapton, Hendrix' and the likes in the past (virtually millions) you could be tempted to be more optimistic, but I believe there is not that same kind of market for Rory memorabilia at the moment - though I surely believe that will change in the course of ten or twenty years (because as we all witness Rory appears to grow a stronger reputation and fame at the moment), I don't think the items on sale will be enough for a 'Rory School of Music'. By the way, there's been another Hendrix guitar on ebay last week (
http://www.ebay.de/itm/jimi-hendrix-own ... 3cc46689e9), reportedly the last one he ever used in a live performance (a jam with Eric Burdon a couple of days prior his death). It did not sell, not even for 175k, which is rather moderate if compared to other Hendrix instruments that have been sold in the past.
The next problem would be to find adequate teaching personnel - what measures would you want to use in order to find guitar teachers for a Rory Gallagher School of Music? Extraordinary teachers will require extraordinary payment. Mind that we're not talking about any music school, we are talking about a facility that should be related to Rory in other respects than his name alone. even the proposal to make available those of Rory's instruments/gear that wont sell for teaching purposes will throw up problems: first of all they would still have to be insured, secondly I doubt that most of them will meet the requirements of teaching (some of them might be broken, others hard to operate - remember, Rory collected a lot of instruments that were rather cheap and of obscure origins).
I have to admit that initially I did not like the idea at all that a part of Rory's collection was going to be scattered to all the four winds. I think it was because it would mean that some of the items will vanish forever or might not been treated rightly. I soon realized that it was very assuming to think so, since what has to stand above all is what Rory would have wanted and what his family wants to happen. I did not know Rory but I sense he would have liked to give them for the benefit of underprivileged young musical talents. besides that, I think to let some of his gear go would certainly give a positive impulse to fan culture - just imagine your Hard Rock Cafés without all those history-charged stuff mounted behind glass.