Scottish Rugby
Annual Report 2014/15
Scottish Rugby BT Murrayfield, Edinburgh EH12 5PJ Tel: 0131 346 5000 scottishrugby.org | @scotlandteam
Contents 2
President’s Welcome
4
Chairman’s Review
6
Chief Executive’s Report
8
BT Sport Scottish Rugby Academy
12 Scotland 14
Scotland 7s
15
Scotland Age Grades
16
Glasgow Warriors
18
Edinburgh Rugby
20
Women & Girls
22 Referees
Front cover Al Kellock lifts the Guinness PRO12 2014-15 Trophy Back cover Scotland Women Photography SNS Pix
24
Coaching Pathways
26
Clubs
28
Schools & Youth
30
Commercial Report
32
Corporate Social Responsibility
33
Working with Government
34
Social Media
36
Health & Safety
37
Club & School Results
38
Strategic Report
40 Governance 46
Board Report
Produced by Scottish Rugby Editor Bronwyn Torrie Designer Laura Chessar
All information correct at time of going to print on 23 July 2015
To download a copy please visit scottishrugby.org/annualreport
Financial Statements 48
Independent Auditors’ Report
51
Income & Expenditure Account
52
Balance Sheet
53
Cash Flow
54 Notes 61
Five Year Summary
62
Commentary on the Accounts
Leadership . Engagement . Achievement . Enjoyment . Respect
1
3
Ian Rankin
RWC Trophy Tour
President’s Welcome
The Webb Ellis Cup was taken on a whistle-stop tour around Scotland in June, as part of its global journey to Twickenham for the opening RWC 2015 match. Rugby clubs across the country hosted the trophy and events to inspire people of all ages to get involved and support Scotland.
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3
This season has been particularly exciting as the quality of domestic rugby has continued to rise. While players have put in hundreds of hours of training and, in some cases, thousands of miles of travel, supporters have stood on the sidelines in rain, hail and shine to watch exciting showdowns as teams battled for coveted silverware in their respective leagues.
Selkirk Rugby Club for more than 70 years. The Club Awards Dinner was also a special affair for Livingston Rugby Club’s Lee Anne Steel, who was named BT Volunteer of the Season for her tireless work to ensure the growth of rugby, particularly at youth level in her region.
These matches simply wouldn’t go ahead if it wasn’t for volunteers who give up their time to coach, referee, serve on committees and roll up their sleeves to ensure clubs survive and thrive. A fantastic example of this are the Spirit of Rugby award winners, Jim ‘Basher’ Inglis – a former Scotland internationalist - and his wife Mary, who have served
BT Cup Finals Day was a highlight of the season when over 10,000 people converged on BT Murrayfield for a sundrenched day of first-class club rugby.
Boroughmuir lifted the BT Cup with a powerful performance to overcome Hawick, St Boswells completed a league and cup double by winning the BT Shield and Alloa were crowned BT Bowl champions with an eleven try victory over Cumnock. In the women’s finals, Watsonians won the BT Women’s Bowl, Stewartry claimed the BT Women’s Plate with Hannah Sloan, who made her Scotland Women debut this season, crossing the whitewash three times. Murrayfield Wanderers won the Sarah Beaney Cup to add to their BT Women’s Premier League title, before winning the BT Women’s Club of the Season award. Well done to Heriot’s on winning the BT Premiership and to their coach Phil Smith for being named Caledonia Best Coach of the Season. The club also celebrated their 125th anniversary in style with a game against the Barbarians who also celebrated 125 years. It has been a huge privilege to serve as President during a time of expansion, particularly in grassroots rugby where more money than ever is being invested. Making the game sustainable and growing it from the ground up wouldn’t be possible without our sponsors, and in particular BT.
Heriot’s celebrate winning the BT Premiership
2
Scottish Rugby Annual Report 2014/15
I would like to thank everyone who plays their part in the success of Scottish Rugby and for your support throughout this memorable club season.
3 5 Day 1
Jedburgh
Day 2
North Berwick, Raeburn Place, BT Murrayfield
Day 3
Howe of Fife, Aberdeen Wanderers, Banff, Deeside, Huntly & Mackie Academy Orkney RFC
Day 4
Highland RFC
Day 5
Scotstoun Stadium, Ayr RFC
5
2
2 1
5 days, 13 clubs 14 Scotland players 1000 miles travelled
Club Highlights McLaren Rugby Club returned to their home in Callander after three years away, following £45,000 of CashBack for Communities funding to develop their facilities
Scottish Rugby Chairman Sir Moir Lockhead switched on Deeside’s new floodlights at Woodend Playing Fields, Banchory. The lights were funded through the club’s capital and with the support of sportscotland and the CashBack for Communities facilities fund.
Currie were the Scottish Rugby Under-18 League and Under-16 League champions
Over 20 Scotland players were involved in the Royal Bank of Scotland RugbyForce weekend which helped 150 clubs to kick off the season
Leadership . Engagement . Achievement . Enjoyment . Respect
Four years after being formed, Stewartry Sirens lifted the 2015 BT Women’s Plate
3
Sir Moir Lockhead OBE
Net interest Club Support
Chairman’s Review
Depreciation
Average debt
At the heart of our investment from the ground up is the BT Sport Scottish Rugby Academy, and much work has gone into getting all four centres up and running for the first intake of 87 young players.
This year has seen a dramatic rise in the number of qualified coaches, with over 950 coaches achieving a qualification and over 4,500 attending workshops and conferences thanks to Scottish Rugby.
The Academy gives us a real opportunity to drive players and coaches through a system that will consistently benefit schools, clubs and, ultimately, Scotland’s professional and national teams. We are grateful to BT and our other local partners for their help in bringing these plans to fruition.
Player safety remains the highest priority and I would like to commend Dr James Robson for his contribution to the ‘If in doubt, sit them out’ guidelines on managing concussion in Scottish sport. We also introduced the World Rugby First Aid in Rugby Level 1 Course this season and continued to deliver our RugbyReady course to thousands of teachers, coaches, referees and volunteers.
We are also entering a new era for Women and Girls’ Rugby. We are in the final stages of realising our ambitious
Despite this, we had a very successful year as we continue to inspire Scotland through rugby and ensure our young people enjoy the game. Finally, I would like to thank the players, coaches, volunteers and Scottish Rugby staff for their hard work this season.
over
£500k Ticketing
Scottish Rugby Annual Report 2014/15
Commercial & Operational
Turnover compared to 2013/14
The organisation suffered a serious blow when World Rugby removed the Emirates Airline Glasgow 7s from the Sevens World Series. After nine years of hard work and investment by Glasgow
Leadership . Engagement . Achievement . Enjoyment . Respect
Other operating income
Expenditure
While our professional teams have made great strides on the field, the impact of last year’s BT sponsorship agreement has started to benefit clubs, schools and communities directly.
The Schools and Youth structure has been revised this year with extensive consultation on the proposed format. The aim is to ensure more players get onto the field and graduate through the age grades and adult game with improved skills.
This holistic structure will not only expand our depth of homegrown talent, it will also provide another pathway for Scottish coaches to rise up the ranks.
4
This sends a clear message that Scottish Rugby is committed to growing player numbers and closing the gap with other nations on the international stage.
City Council, the Scottish Government and Scottish Rugby, the decision lacked any logic and was extremely frustrating to all involved.
£44,219k
Turnover was over £500,000 higher compared to the previous season. Additional sponsorship income from BT and higher RBS 6 Nations ticket revenues contributed to the increase.
national strategy and Shade Munro has joined Scotland Women as Head Coach from his post at Glasgow Warriors.
Income
Our average debt fell to below £10 million for the first time in over a decade and our investment into the domestic game continued to rise.
Domestic & Performance
Broadcast
below £10M for first time in over a decade
£44,243k
Scottish Rugby continues to expand all areas of the game to ensure it is sustainable at every level. At the same time, we have reduced our debt burden.
International & Pro Game
5
Mark Dodson
Club Sustainability Fund
Chief Executive’s Report
While there have been some great moments on the pitch, there has also been a lot of hard work in the background to make the game sustainable from the grassroots up. The health of rugby at all levels is paramount to the growth and success of the sport, which is why we are investing heavily in the domestic game.
It has been a positive year for Scottish Rugby with our two professional teams making history at the business end of the season. After 20 home-game wins on the trot, Glasgow Warriors lifted the Guinness PRO12 trophy. It was a breakthrough moment for the club and I am absolutely delighted for Head Coach Gregor Townsend and the team - they truly deserved the win.
e
ns
ec
f in utiv e ye a rs o
as
Fiv
co
Club support & development
es
23%
cr
e
Club support and development now exceeds £2.7 million, a 23% increase on the previous year and follows a 16% rise in 2013/14.
196, 476 supporters watched Scotland’s three RBS 6 Nations matches at BT Murrayfield
6
Edinburgh Rugby also entered the record books when they became the first Scottish side to reach a European cup final. They played a consistently high standard of rugby under pressure during the Challenge Cup and the foundations are now in place for them to go one better next season, under Head Coach Alan Solomons.
Scotstoun welcomed an historic sell-out crowd at the Emirates Airline Glasgow 7s and there wasn’t a spare seat in the house for Glasgow Warriors’ last two Guinness PRO12 games, with crowds of 10,000 recorded at each. It’s important we maintain and strengthen our relationships with fans as every pound from ticket sales goes back into the game. Thank you for your loyal support and we look forward to sharing further successes with you next season.
Training lights & showers
£40k
Perthshire
Clydebank
£50k
3G Pitch
£38.6k
Nothing has given me more pleasure this year than rolling out our £1.6 million Club Sustainability Fund, made possible through our partnership with BT.
Stewartry*
Changing rooms, floodlights, gym
Duns*
Renovation of school gym into new clubhouse building
£25k
Fourteen clubs benefitted from the first round of funding and I am delighted Haddington* this investment, across a range of Clubhouse renovation major projects, will improve facilities for club members, local communities and independently generate more business to reinvest in the game.
£37.5k
£38k Biggar*
Pitch & training area extension
Selkirk*
Selkirk RFC
New pavilion & changing room with fitness, rehab, conditioning suites, community café and social facilities
Strength & conditioning suite
A further 41 clubs received up to £2000 from the Fast-Track strand of the Club Sustainability Fund for maintenance and improvement projects.
£10k £10k £10k £10k £10k
Stewart’s Melville, Hawick Community Rugby Trust, Falkirk, Kelso & Linlithgow (£9862) New Business Development Officers *additional funding received from sportscotland
Changing room extension
The club, which won promotion into the BT Premiership this season, secured £37,500 towards upgrading their facilities to accommodate the growing number of teams at the club. sportscotland awarded a further £37,500 taking the total amount to £75,000.
“This will make a huge difference. For us to raise that kind of money would take four to five years.
There is no doubt the Scotland team has improved, particularly during the Autumn tests, but sadly this wasn’t reflected in the final scores during the RBS 6 Nations. We have work to do ahead of the 2015 Rugby World Cup.
Scottish Rugby Annual Report 2014/15
Lismore
Howe of Fife*
The changing rooms at Selkirk Rugby Club will get a complete overhaul for the first time in 80 years thanks to Scottish Rugby’s Club Sustainability Fund.
This success is just the start of our journey; we have to build on the gains. But most of all we now have proof that players and coaches can stay in Scotland and win silverware. We know we still have much to do and achieve, but are looking forward positively to more competitive and entertaining rugby.
BT Murrayfield has welcomed capacity crowds this season following sell-out matches against Ireland and Wales, which contributed to the highest ever ticket sales in the tournament’s history in Scotland.
£37.7k
£60k
£38k
“We are a community club, we rely on bringing our young players through. Now we can give the players good changing rooms and it just finishes off the ground.” Alloa v Cumnock in the BT Bowl Final
John Rutherford, President, Selkirk RFC
Selkirk’s oldest living Scottish international Jim Inglis and Selkirk Captain Andrew Cavanagh
Leadership . Engagement . Achievement . Enjoyment . Respect
7
Highly skilled staff have been recruited to work with players and stakeholders within each region to identify future talent and to help instil performance behaviours and methods. Individual player plans and region wide programmes under the agreed national framework are being developed.
BT Sport Scottish Rugby
Academy The national launch of the BT Sport Scottish Rugby Academy in June marked a new beginning to raise the standard and flow of young talent into the top echelons of the game.
This exciting national initiative will, for the first time, see both male and female players supported within their respective regions, while still ensuring our future professional male players have strong links and opportunities to be involved with our pro-clubs. To allow this regional support, we have secured four new centres with top-class
“Where our Academies are unique, in my experience, is that our national coaches will work with them on a weekly basis. Any player in our Academy structure is only two steps away from working with the likes of Vern Cotter, Matt Taylor and Jonathan Humphreys” Scott Johnson, Director of Performance Rugby Regional matches at under-16, under-18 and under-20 levels were held throughout the season to give identified players a platform to be selected for the new Academy structure and international age-grade teams. The games also brought back meaningful competition between the four rugby regions in Scotland.
p
rtscotland a nd spo th i Ins w t
27
players supported regionally
+
25
players contracted to pro teams as er Elit lay eD P e v e l o p m e nt
s
Great strides have been made since the Academy structure was outlined in The Way Forward policy initiative 18 months ago. The landmark BT sponsorship deal has enabled Scottish Rugby to provide significant investment into the Academy.
Homegrown talent realising potential in Season 2014/15
in par tne rsh i
By the end of the season, seven players had signed full-time contracts with our two professional clubs. Zander Fagerson, Fergus Scott, Glenn Bryce and D’Arcy Rae have joined Glasgow Warriors, while Edinburgh Rugby have secured Magnus Bradbury, Blair Kinghorn and Rory Sutherland.
Making gains
port of S te itu
While work was on-going to secure facilities, staff and players for the new Academy structure, the existing performance development programme continued. On top of playing for their club and school teams, 52 players were also exposed to the professional stage, including the Under-20 Six Nations, Scotland 7s and the Guinness PRO12.
= 11 + 1
facilities including, indoor and outdoor training, performance gyms, medical and rehab space, offices and classrooms. The facilities have been developed in players featured partnership with other agencies and in the Guinness will provide a focal point and regional PRO12 & European identity for players, while also providing performance-training environments that Rugby Challenge & Champions Cups are vital to accelerated development.
player capped for Scotland
Development off the field will have a greater focus, with education embedded within the Academy programmes. A flexible training approach will allow for personal development alongside rugby, to help players become better, well-rounded individuals.
Scottish Rugby Annual Report 2014/15
Academy Managers
Graeme Beveridge | Edinburgh Edinburgh Napier University, Sighthill In partnership with Edinburgh Napier University & Edinburgh City Council
The Academy will also provide a pathway for the next tranche of coaches to bridge the gap between the club and professional games. Working to improve the next generation of players and coaches within the BT Sport Scottish Rugby Academy will undoubtedly prove significant at all levels in the game and will help provide greater consistency and competitiveness in the future.
Bruce Frame | Caledonia Aberdeen University, Hillhead Centre In partnership with University of Aberdeen & Aberdeen Sports Village
“The Academy is not about taking players out of their normal environments, it’s about adding value to individuals and having a positive impact on rugby in the region by instilling performance behaviours at clubs and schools” Stephen Gemmell, Head of Academy
Cornerstone of a new era
2015/16 87 players selected for the first intake
8
Adam Ashe was capped in the summer tour while still an Elite Development Player
27 16 44
Jamie Dempsey | Glasgow & The West Broadwood Stadium, Cumbernauld In partnership with North Lanarkshire Leisure Trust
Stage 3 contracted players Stage 2 female players
Stage 2 male players
Leadership . Engagement . Achievement . Enjoyment . Respect
Chris Dewsnap | Borders & East Lothian Heriot Watt University, Netherdale In partnership with Borders College, Heriot Watt University, Borders Sport and Leisure Trust, Borders Council and Gala Junior Rugby Council
9
BT Sport Scottish Rugby Academy inductees 2015 with Sam Hidalgo-Clyne, Grant Gilchrist, Jonny Gray and Stuart Hogg
Grant McConell Age: 20 Position: Winger Club: Boroughmuir Honours: Scotland under-18 Boroughmuir winger Grant McConnell ended the season on a high after scoring a try in the BT Cup final win over Hawick at BT Murrayfield. Becoming a Stage 3 BT Sport Scottish Rugby Academy player was the cherry on top for the 20-year-old, who is studying civil engineering at Edinburgh University.
10
Scottish Rugby Annual Report 2014/15
“Training 25 hours a week is going to be a shock to the system, compared to my two club and four gym sessions, but it will be really beneficial. “Being in a performance environment and training together, with the specialist coaches and hi-tech equipment, is definitely going to help me work towards my dream of playing for Scotland.”
Sarah Law Age: 20 Position: Scrum-half Club: Murrayfield Wanderers Honours: Scotland Women Scotland Women scrum-half Sarah Law was selected as a Stage 2 BT Sport Scottish Rugby Academy player. When the 20-year-old isn’t studying applied maths at Edinburgh University, she will be down the road at Napier University training with fellow Academy players.
Leadership . Engagement . Achievement . Enjoyment . Respect
“They’re giving us everything we need so we can concentrate on improving all aspects of our game. The flexible programme will fit around my other study and will also complement my training with Murrayfield Wanderers. “I think the Academy will give Scotland Women an opportunity to be better prepared for the games and will enable us to compete at a much higher level. “
11
Scotland
Rugby World Cup
Dougie Fife produced the only try in the loss to France in Paris, before we suffered a narrow and controversial loss to Wales and an agonising late defeat to Italy. Captain Greig Laidlaw kicked his men into a half-time lead in the Calcutta Cup clash at Twickenham, however
Scottish Rugby Annual Report 2014/15
competing for a place at their third Rugby World Cup
N atio n s
S6
RB th
e
a cc u ra c y d u ri
ng
89%
ow
df o r R B S 6 N at
Gloucester & Saracens
v I t a ly
65
s io n
Scotland 41-31 Argentina Scotland 37-12 Tonga France 15-8 Scotland Scotland 23-26 Wales
S
Became Scotland’s most capped prop before announcing retirement from international rugby.
ten points in ten minutes from England halted Scotland’s progress. Flashes of promise and thumping hits in front of a full house at BT Murrayfield were eclipsed by a clinical Irish side, who were not going to let anything get in the way of securing the title.
Scotland Results
Scotland 16-24 New Zealand
nd
315,270
cup / league champions this season; Glasgow Warriors,
Euan Murray
capacity at Scotland’s six home games in 2014/15
cr
6
tla
Despite showcasing the attacking vigour which fans had become accustomed to under Cotter, the national team had a winless campaign.
uncapped players
co
Support for Scotland reached fever pitch following the viagogo Autumn Tests, with tickets to the Ireland match selling out in record-time, a capacity crowd for the Wales game and a record attendance for the Italy fixture.
9 26
2015 RBS 6 Nations
d
12
Richie Gray scores against Argentina at BT Murrayfield
or
Then came the chance to get back to winning ways against Tonga at a soldout Rugby Park, where Scotland put in a strong second-half performance to end the series with a five-try win.
ing
Within the extended squad there are:
rec
We put in an admirable performance, but were left lamenting one that got away in front of an energised crowd of 66,004.
ck
1850m
6 2,1 8 8
scored by Scotland during the viagogo Autumn Tests
ki
Font Romeu
The promising and potent display in front of a record crowd for the fixture was also Head Coach Vern Cotter’s first bow at BT Murrayfield.
11 tries
43 points
’s
Five of the tries were scored in the opening match against Argentina that saw the hosts post their first victory against the Pumas at home since 1990.
What followed was another tale of so near and yet so far, and there have been a few in the 109-year history of matches between Scotland and New Zealand from a home perspective.
11 penalties 4 out of 5 conversions
la w
Scotland will face Japan, USA, South Africa and Samoa in the pool stages of the RWC.
From Richie Gray’s fifth minute try against Argentina to Tommy Seymour’s finish of Finn Russell’s cross-field kick against Tonga at Rugby Park, Kilmarnock, crowds were entertained from start to finish.
94%
Gr eig L aid
Fans enjoyed watching Scotland score 11 tries during their three viagogo Autumn Tests at home – the most tries in an autumn series for seven years.
The extended squad kicked off their preparations at Font Romeu, a high altitude training camp in the French Pyrenees, before the four-game summer series against France, Italy and Ireland.
Scotland 19-22 Italy England 25-13 Scotland Scotland 10-40 Ireland
“The players were rewarded in the autumn for their collective effort to create and finish opportunities, scoring 11 tries across the three Test matches. We played some good attacking rugby in the RBS 6 Nations, but needed to do it for much longer and get our mindset into building games, as well as minimising errors” Vern Cotter, Scotland Head Coach
Leadership . Engagement . Achievement . Enjoyment . Respect
13
Scotland 7s
Scotland Under-20
Scotland 7s finished the HSBC Sevens World Series in seventh place, overtaking their previous highest ranking of ninth.
Under-20 Six Nations Championship After notching up three victories from five, Sean Lineen’s charges finished third.
In his first term as Head Coach, Calum MacRae and his charges competed in the top eight for the majority of the Series, having qualified for six Cup competitions across the nine tournaments.
The squad recorded their first win over Wales since 2009 and their greatest winning margin in the 45-0 victory over Italy.
They celebrated their highest ever finish of fourth in Wellington, before winning the Bowl in Hong Kong. There were also personal highlights among the squad, including captain Scott Riddell making the London 7s Dream Team for his eyecatching work at the breakdown.
Six Nations Championship Results France 45 v 6 Scotland Scotland 36 v 34 Wales Scotland 45 v 0 Italy
Colin Gregor became the third highest all-time points scorer in the HSBC Sevens World Series, bringing his total to 1345 points. He also became Scotland’s most capped sevens player with 58 Sevens World Series caps, before announcing his retirement at the end of the season. James Johnstone had an impressive year and scored at least one try at every tournament, taking his season tally to 22. He was also the Series’ top ball carrier.
Scotland under-20 enjoyed their most successful year by recording their highest ever finish in the Six Nations and the World Rugby Under-20 Championship.
England 26 v 11 Scotland Scotland 17 v 10 Ireland
World Rugby Under-20 Championship The team had a tough start at the championship in June, losing against eventual champions New Zealand and running close to Ireland, who they beat during the Six Nations.
First Scotland team to beat England 1983
at Twickenham since
Scotland Sevens team on the eve of the Emirates Airline Glasgow 7s
“The team have achieved many of the aims we set out at the start of the year” Calum MacRae, Scotland 7s Head Coach
In their final pool match, Scotland gave a scintillating three-try display on their way to achieving their first victory against Argentina.
Scotland U20 Patrick Kelly on the break against Wales
Scotland Under-18 Scotland under-18 started their season in a confident manner scoring three superb tries against England, before crossing the whitewash twice in a victory against Ireland Schools. The side endured a tough campaign at the Rugby Europe under-18 Elite Division Championships, failing to record a victory in their three games going down to hosts France, Portugal, then Ireland in the seventh place playoff match.
Scotland Under-18 Results England 36 v 27 Scotland Scotland 21 v 13 Ireland Schools Rugby Europe Elite Division France 22 v 10 Scotland Scotland 0 v 0 Portugal (Portugal win 3-2 on penalties) Scotland 12 v 21 Ireland
World Rugby Championship Results
This season...
51
games played
Damien Hoyland made his mark during his first season on the Series by scoring 19 tries, seven of which were in Wellington.
14
in
9 tournaments
Scottish Rugby Annual Report 2014/15
Scotland 10 v 68 New Zealand Scotland 20 v 24 Ireland
21
Scotland 29 v 6 Argentina Scotland 21 v 31 Australia Scotland 9 v 17 Ireland
players donned the jersey
including
7 new caps
79,629
miles travelled
Scotland progressed to the top eight play-offs, yet were unable to record any further victories going down to Australia and Ireland.
Scotland Club XV claimed the Dalriada Cup after defeating their Irish counterparts 23-18 at Netherdale, Galashiels. The side, coached by Phil Smith of Heriot’s, lost their second match against England Counties 37-3.
Leadership . Engagement . Achievement . Enjoyment . Respect
15
Glasgow Warriors Glasgow Warriors became the first Scottish team to win a major title last season, defeating Munster 31-13 to lift the Guinness PRO12 trophy.
The victory capped an incredible season for Gregor Townsend’s charges, who finished top of the league for the first time in the club’s history, securing a home play-off in the process. The home semi-final against Ulster was won in dramatic circumstances, after the Warriors were down 10-6 at half-time but battled back to score four tries in the second half.
Signing Off After nine years captaining the Warriors, inspirational leader Alastair Kellock hung up his boots at the end of the season bringing an end to a remarkable career.
A week later, the sides met again and the Warriors’ home was rocking when DTH van der Merwe set the place alight on his final appearance in Glasgow colours at Scotstoun by scoring a try to tie the scores. Finn Russell banged the ball over the sticks from out wide to secure the Warriors’ place in the final. At the final in Belfast, the Warriors dominated proceedings with Rob Harley, DTH van der Merwe and Henry Pyrgos scoring before the break. Finn Russell scored the fourth try of the afternoon to seal the win against Munster. Season 2014/15 will undoubtedly go down in history as the club retained their Melrose 7s title and also went close to qualifying from the European Rugby Champions Cup group stages for the first time. The Warriors were unbeaten at home in the Guinness PRO12 and Townsend was named PRO12 Coach of the Season. On the international front, the Warriors excelled with Finn Russell, Mark Bennett, Tyrone Holmes, Gordon Reid, Adam Ashe, Kevin Bryce and Alex Allan all winning their first caps, with Peter Horne making his first start at BT Murrayfield. Ahead of the Rugby World Cup, 22 players were named in the training squad including Rory Hughes, Mike Cusack and Josh Strauss. Next season, new signings Mike Blair, Greg Peterson, Grayson Hart, Sam Johnson, Kieran Low, Simone Favaro and Taqele Naiyaravoro will join the squad.
Richie Vernon is congratulated by his team mates after scoring to help secure Glasgow Warriors a place in the 2014/15 Guinness PRO12 Final
16
Scottish Rugby Annual Report 2014/15
“What an incredible feeling it was to lift the trophy in my final game before retiring. I’ve been at the club for nine years and we’ve been building and building and building for so long. For it to get to the point of winning the Guinness PRO12 is just beyond belief.” The 33-year-old has skippered the club to two PRO12 finals, playing more than 150 times for the Warriors and winning 56 Scotland caps. He received this season’s Guinness PRO12 Chairman’s Award in recognition of his outstanding service to the competition. Kellock will now take up an ambassadorial role with Scottish Rugby, as well as assisting the development of Glasgow Warriors The main focus of his role will be engaging with the rugby and business communities and learning more about the commercial aspect of sport, enabling him to stay connected with the Warriors.
Tommy Seymour on the run
10,000 89% 108 3
capacity crowds at Scotstoun two weeks in a row v Ulster
increase in Season Ticket Members since 2012/13
club teams involved in matchday activity
11
54-10 50%
Warriors in Guinness PRO12 Dream Team Peter Horne, Josh Strauss Tommy Seymour
most tries DTH van der Merwe
biggest win v Zebre PRO12 Nov 2014
increase in Business Club Members
99
most points Peter Horne
Game On Programme Nov 14 - June 15
129
attendees
35
sessions and workshops
Warriors Kids Camps Oct 2014 & April 2015
370
kids from P1 - U18
52
coaching hours
Leadership . Engagement . Achievement . Enjoyment . Respect
17
Edinburgh Rugby
Rising Talent Sam Hidalgo-Clyne emerged as a potent threat this season and was voted the Guinness PRO12 Young Player of the Year.
Edinburgh Rugby made history when they became the first Scottish team to reach a European cup final with a squad featuring a balance of youth and experience. After notching up seven wins on their journey to Twickenham Stoop, their dream of silverware ended with Gloucester clinching the Challenge Cup. The club kicked off their European campaign with wins over BordeauxBègles and Lyon before back-to-back successes over London Welsh. Their defeat against Lyon was quickly forgotten with victories over Bordeaux and London Irish, followed by a thrilling semi-final win over Dragons to book their place in the final.
Earlier in the season, Alan Solomons’ side proudly lifted the 1872 Cup for the first time in six years after a fantastic team performance, in front of a record crowd at BT Murrayfield, against Glasgow Warriors.
15,810 SPECTATORS
at BT Murrayfield saw Edinburgh win the 1872 Cup - a record crowd for an Edinburgh Rugby league game
This was a highlight in what was a mixed Guinness PRO12 season that started with an away win over Munster and ended with two losses that put them out of contention of a top six finish. Despite finishing the PRO12 with ten more points than the previous season, Edinburgh concluded the season in eighth – the same ranking as 2013/14.
The 21-year-old, who graduated through the Academy system, was also honoured closer to home by his former Cub pack in Edinburgh, who voted him their local hero of the year.
This placing means they will return to the Challenge Cup hoping to go one better under the continued leadership of Solomons, who committed to another year at the helm to build on the momentum.
Taking on kicking duties midway through the season, the scrum-half’s accuracy with the boot, in dreadful conditions, ensured Edinburgh’s away win over Connacht in January.
The capital club will welcome former Edinburgh and Scotland internationalist, Duncan Hodge, to the coaching team from the Scotland set-up following Rugby World Cup 2015.
He backed this up with a manof-the-match performance that saw him take the club’s European points record with two tries, three conversions and four penalties in the win over Bordeaux-Bègles at BT Murrayfield.
Scotland under-20 internationalists Blair Kinghorn and Jack Cosgrove will also be added to the player ranks alongside Nasi Manu and Will Helu.
“This past season has seen us make good progress. We became the first Scottish team to make a European final. We won the 1872 Cup for the first time in six years. Next season is a case of onwards and upwards” Alan Solomons, Edinburgh Head Coach Edinburgh Rugby guard of honour from Duns RFC and Peebles RFC
18
Scottish Rugby Annual Report 2014/15
Ben Toolis and Ross Ford congratulate Stuart McInally after he scored a try in the European Challenge Cup semi-final win against Dragons at BT Murrayfield
1,100 416
player community visits during 2014/15
youngsters attended Young Gunners Camps
2,379
54
Ben Toolis won most lineouts in the European Challenge Cup
9,511
children were involved in pre-match activities
people met players at organised events
WP Nel named at tighthead in the Guinness PRO12 Dream Team
Leadership . Engagement . Achievement . Enjoyment . Respect
A further man-of-the-match performance in the quarter-final win away against London Irish led to an outstanding performance in the semifinal home win over Dragons, where he scored 25 points. Having been brought in to the extended squad for the 2014 viagogo Autumn Tests, he made his Scotland debut against France in the RBS 6 Nations and was included in the extended Rugby World Cup squad.
19
Women & Girls
Scotland Women A number of young players made their debut for Scotland Women this season, which began with a four-day training camp in August.
More women and girls are playing rugby in Scotland with new teams springing up this season.
Determined to build on their strong performance against Italy in the autumn, Scotland Women kicked off their 2015 Six Nations campaign against last year’s winners France.
This means there will be 22 clubs competing across BT Women’s Premier League, BT National League 1 and BT National League 2 next season.
On the national front, Glasgow Warriors Assistant Coach, Shade Munro, was appointed Head Coach of Scotland Women. Taking up the role this summer, Munro is charged with progressing the women’s side in line with the forthcoming national strategy for women and girls’ rugby, which is being developed by Head of Women & Girls’ Rugby, Sheila Begbie MBE. Rugby for women is one of the fastest growing team sports in the world and more needs to be done to close the gap between Scotland and other nations. The inclusion of 16 young women in the first intake of the new BT Sport Scottish Rugby Academy is a step towards improving performance. This will have a positive impact on all levels of the game as players will benefit from bespoke strength, conditioning, medical and playing facilities and expertise. Scottish Rugby is also planning to bid for the Women’s Rugby World Cup 2021 and ensuring Scotland Women qualify for the tournament is a priority.
20
Former Scotland lock, Shade Munro will bring 18 years’ coaching experience to his role as Scotland Women Head Coach.
A further four camps, including a win against an Irish Exiles side at BT Murrayfield, were held alongside weekly skills sessions.
Howe of Fife, Greenock and Annan have capitalised on the surge of interest and have entered teams to play in national women’s leagues for the first time.
Across the country, the number of female club and school teams rose to 158 this season, compared to 130 in 2013/14, and 42 female referees completed their UKCC Level 1 qualification.
New coach for Scotland Women
Despite losing all Six Nations matches, the side showed improvements with number 8 Jade Konkel scoring against Italy and Eilidh Sinclair against England.
Women & Girls Teams
Munro moved from Glasgow Hawks to Glasgow Warriors as Assistant Coach in 2002 and was part of the Scotland coaching set-up in 2006.
Scotland Women Results
He was also Head Coach of Scotland A in 2013 when they beat England for the first time south of the border.
Six Nations
18%
France 42 v Scotland 0 Scotland 3 v Wales 39 Scotland 8 v Italy 31
Oban HS take on Ayr in the Brewin Dolphin Girls’ U15 Bowl final
England 42 v Scotland 13 Scotland 3 v Ireland 73 Chloe Rollie, Scotland Women
Greenock Wanderers Ladies Team Launched What began as a small group of young women keen to learn how to play rugby has turned into a fullyfledged competitive side. Caitlyn Haldane rallied the players and launched the weekly training sessions with the support of local Rugby Development Officer, Brendan McGroarty. She also used social media to spread the word. The team now has 30 registered players and will compete in BT Women’s National League 2 next season after remaining undefeated in the National Development League this year.
Scottish Rugby Annual Report 2014/15
“My dad has been coaching at the club for years and I’ve always had an interest in playing and I just wondered if there were any local girls who wanted to give it a go. A number of the girls from the team have been involved in coaching and helping Brendan encourage under-15 girls to start. The aim is to have an under-18s girls team as well.” Caitlyn Haldane
Scotland Women Under-20 The under-20 programme aims to identify, develop and prepare young players for the Scotland Women senior squad. An open trials day at BT Murrayfield attracted nearly 50 girls from which a squad was selected for the season. The Scots won their first match 32-7 against the RAF at Meggetland in February, with five of the six tries scored by winger Rhona Lloyd. In the second fixture, away against Northumbria University, they kept their 100% record with a 34-0 win.
Scotland Women 7s After two warm-up events in Amsterdam and London, the team competed in two Rugby Europe Grand Prix tournaments in Russia and France. New players, including Scotland Women caps Jade Konkel and Karen Dunbar and under-20 cap Caitlin Harvey – got off to an encouraging start in Russia, where a first-ever win over Ukraine at this level and two wins over Portugal saw them lift the Bowl trophy and take ninth position on the table. A tough draw in France, with only one victory over Italy, saw the Scots finish the season 11th, resulting in relegation to Rugby Europe Division A next season.
Leadership . Engagement . Achievement . Enjoyment . Respect
“I’ve got a lot of experience in professional rugby and I’m keen to bring that to the women’s game, to link the two and move the team on. I’m really looking forward to the challenge. I’ll look at all aspects of the women’s game – from the club coaches to the strength and conditioners to the team itself – and work in conjunction with Sheila, to bring a different edge to the national team programme.” Shade Munro
21
Referees
The regional development positions were changed to three national roles and a technical and logistical support role for districts and societies was added.
Sam Grove-White was appointed to the Rugby Europe U18 tournament in France, while Mike Adamson, Kevin White and Alex Pratt officiated at the Rugby Europe Sevens tournament that
22
13%
increase in qualified referees this season
l if
ua
Neil Patterson, Lloyd Linton and Andrew McMenemy were involved in the European Rugby Champions Cup and Challenge Cup competitions.
yq
All have been appointed to various high profile matches and tournaments this season alongside our other elite referees.
Mike Adamson at the Emirates Airline Glasgow 7s
l 282 new
Scottish Rugby’s four contracted referees for season 2014/15 - Lloyd Linton, Mike Adamson, Sam GroveWhite and Andrew McMenemy were under the guidance of former international referee Dave Pearson.
136
West
There are high expectations to see him selected for next year’s Olympic Games.
er e g io n s
While we continue to focus on educating referees to a high standard, we have also implemented a revised structure to our department under Refereering Commissioner Tappe Henning.
437 31
2459
ie
dl
ev e
l 1 r ef er
a ees
cr
o
also served as an Olympic Regional Qualifying tournament for Rio 2016. Young and energetic teams of Scottish match officials were also appointed to the Emirates Airline Glasgow 7s, including 18-year-old Ross Mabon, showcasing to World Rugby the face and future of Scottish referees.
Scottish Rugby Annual Report 2014/15
He also took charge of four matches at the World Rugby U20 Championship 2015 in Italy and was assistant referee for three. He was appointed assistant referee for the final, which showed the high regard for his performances in the tournament. Lloyd began refereeing in 2008 and has travelled to all corners of Scotland while gradually moving up the leagues and gaining experience on the international stage.
th
referees.
Since then, the qualified doctor has been appointed to international duty, including two Rugby Europe internationals – Poland v Ukraine and Spain v Russia – and the Americas Rugby Championship in Canada.
Borders
ss
We also held courses across the country, which were attended by over 400
159
Referee Course Attendees
111
This season there were 2,400 qualified match officials across the four regions.
Mike Adamson keeps improving as a referee in the HSBC Sevens World Series and officiated in all nine tournaments, including the Cup finals in Dubai and London.
The up-and-coming referee swapped his stethoscope for a whistle when he graduated from Aberdeen University last summer.
Edinburgh
While our elite referees performed on the global stage, hundreds of volunteers picked up the whistle week in, week out. Scottish Rugby appreciates the time, knowledge and contribution all referees make to the game - without you matches simply wouldn’t go ahead.
Caledonia
Lloyd Linton
Alex Pratt also represented Scotland as an assistant referee at the Women’s Rugby World Cup in France and officiated in the final. She topped off a successful season by collecting Scottish Rugby’s Referee of the Season award.
“I’m hoping next season will bring more chances to officiate Guinness PRO12 matches, European and international competitions.” Lloyd Linton
Mhairi Hay, Assistant Referee in the Scotland Women v Ireland Women Six Nations match at Broadwood Stadium
Leadership . Engagement . Achievement . Enjoyment . Respect
23
Coaching Pathways
Coaching Conferences
Teacher
Scotland Head Coach Vern Cotter focused on the breakdown area, and Glasgow Warriors Assistant Coach Kenny Murray spoke about his journey from the grassroots game to the professional stage.
se on new c tho ou of rs
es
1
Glasgow Warriors Coaching Day
The day was a mix of presentations on coaching philosophies and styles, supported by practical workshops from coaches in the professional ranks of the sport.
53%
The Long Term Player Development Stage Four and Five Coaching Resource, which focuses on developing and optimising performance in players aged 17 and above, was also launched at the conference.
increase in coaches qualifying this season
964
Edinburgh Rugby kids camp at BT Murrayfield
24
Edinburgh Rugby Coaching Day
Over 130 coaches converged on BT Murrayfield in May to learn from Scotland’s rugby leaders.
We are grateful for the financial support of sportscotland to enable us to deliver UKCC courses at a subsidised cost and to deliver our workshop programme free of charge to coaches working in our clubs and schools.
The World Rugby First Aid In Rugby Level 1 qualification was also delivered for the
Conference
Sharing the Knowledge
The aim of the course is to accelerate the development of Scotland’s top coaches, providing them with the skills and knowledge required to coach at the top of the game, and become leaders in their field.
We also launched the new World Rugby Strength & Conditioning Level 1 course, which is managed by our new Strength and Conditioning Coach Development Officer, Peter Jericevich. To date, 11 courses have been delivered, with 177 coaches attending.
National Coaches’ Conference
National U18 Coaches’ Conference
This season has seen the launch of a new UKCC Level 4 coaching qualification approved by sportscoachUK, and developed in conjunction with Edinburgh Napier University.
72
We welcomed 374 coaches and teachers to our coaching conferences in Edinburgh and Glasgow.
first time with more courses due to be rolled out next season.
further 24 clubs currently undertaking the accreditation process.
Our Positive Coaching Scotland Programme, in conjunction with the Bill McLaren Foundation – which aims to develop young rugby players through promoting a player-centred philosophy – has enjoyed a successful year with 30 clubs achieving accreditation and a
We achieved our target of increasing the number of continuous professional development (CPD) workshops and conferences offered to club and school coaches this season. Approximately 4200 coaches attended at least one session a 40% increase on the previous season.
Scottish Rugby Annual Report 2014/15
“We’ve got a lot of expertise in our game and we want to filter their knowledge down. The feedback is very, very positive and people just want more of it which is something we’re always trying to do.” Neil Graham, Scottish Rugby Coach Development Manager
Scotland and Glasgow Warriors defence coach Matt Taylor, at the National Coaches’ Conference at BT Murrayfield
UKCC Level
1
30%
Leadership . Engagement . Achievement . Enjoyment . Respect
UKCC Level
2
5%
UKCC Level
3
113% 25
This season’s successful clubs also secured an additional £600,000 of sportscotland National Lottery funding towards their capital projects, through the one-stop application process. A further 41 rugby clubs received up to £2000 each from the Fast-Track strand of the Club Sustainability Fund for maintenance and improvement projects. The Club Sustainability Fund has also provided a possible solution to many of
the facility related issues highlighted by about 60 clubs, who have used the Club Diagnostic Tool since it was launched in January. The tool, facilitated by the new Club Services Managers, helps clubs identify their strengths and weaknesses, compare themselves with other clubs and generate action and business plans to help them meet their future aspirations.
This result, and their on-going work to grow the game on the island, saw them scoop the BT Club of the Season Award. Hooker, Scott Rendall, also won the BT Caledonia Regional Leagues Player of the Season.
Scottish Rugby also provided support for clubs to capitalise on Rugby World Cup 2015, including sponsorship and events/ hospitality workshops. The RWC Trophy Tour gave clubs another opportunity to host events during the five-day tour of the Webb Ellis Cup across the length and breadth of Scotland.
Murrayfield Wanderers’ Rhona Lloyd celebrates winning the Sarah Beaney Cup
“We pull in players from some of the 17 islands, so this is very much the club’s award. It’s for everybody, the coaches, players, volunteers and parents” Neil McCartney, Orkney Chairman All this has been achieved against the backdrop of the normal travel arrangements for away trips taking over 24 hours. This dedication was also evident in the club’s drive to see more girls and boys playing rugby.
To assist with this issue and understand more about the motivations of adult male players an extensive player survey was undertaken in conjunction with Napier University. An action plan to improve the transition of players from school and youth teams into adult rugby is also being Adult implemented.
20% growth in student game
STU
DEN
T
Rugby
Y
The first round of funding from the £1.6 million Club Sustainability Fund was shared by 14 clubs, who received just over £400,000, to improve club facilities or employ Business Development Officers to generate more income.
GB
Supporting clubs to develop and plan for the future is a key focus for Scottish Rugby as it invests more money than ever into the domestic game.
There has been an increasing trend of unfulfilled matches in the lower reserve leagues over recent seasons. To address this, a Reserve Team Rugby Working Group has been set up by the Scottish Rugby Council to investigate the reasons for this and provide recommendations on how to reduce this trend.
RU
Orkney topped an impressive year by securing promotion into the national leagues by winning the BT Caledonia Regional League Division 1 title.
Student & Adult Rugby
Youth Rugby
Clubs
Orkney RFC
The student game, which offers an important steppingstone between youth and adult club rugby, has experienced 20% growth. This includes five new teams and others being reactivated through the introduction of an integrated Student Rugby Series of events and fixtures.
Development Officer Tom Hughes, Modern Apprentice Mark Sinclair and volunteers deliver rugby to every school on Orkney, which requires air and sea travel to the out-lying islands.
Boroughmuir’s Magnus Bradbury scores a try in the BT Cup Final
26
Scottish Rugby Annual Report 2014/15
Many of the senior players have come through the youth section and girls’ rugby continues to grow, with the amalgamated Orkney/Caithness girls under-15 and under-16 teams reaching this season’s Brewin Dolphin semi-finals.
Result highlights The season kicked off with the inaugural BT Scottish Rugby Charity Shield match between the 2013/14 BT Premiership and BT Cup winners.
Heriot’s defeated Melrose 36 - 28 to lift the silverware, while money was raised for Breast Cancer Care. Selkirk were the dominant team in BT National League Division 1 with an outstanding season that saw the club win all 22 league matches.
Musselburgh won an exciting BT National Division 2 title race and will be joined in National 1 by Howe of Fife, finally rewarded for regularly challenging for promotion over the last five seasons. Carnoustie HSFP were promoted to Caledonia 1 as winners of BT Caledonia 2 Midlands, while runners up RAF Lossiemouth were promoted from BT Caledonia 2 North.
Berwick secured their second successive promotion as champions of BT East League Division 1, as did St. Boswells in winning BT East Division 2. Murrayfield Wanderers proved the dominant team in the women’s game with a league and Cup double. They lost one match in securing the BT Women’s Premier League title and they clinched the Sarah Beaney Cup with a late try over Hillhead Jordanhill to win 25 - 22. Top four play-offs were introduced this season to determine the BT Premiership champions.
University of Glasgow v University of Edinburgh
Leadership . Engagement . Achievement . Enjoyment . Respect
Heriot’s won the grand final with a dramatic try in the last period of play to narrowly beat Melrose 22 - 20.
27
£833k supported by
invested into
£ 78
Club Development Officer partnerships
with clubs and local authorities
Expanding the school and youth game is integral to increasing player numbers at all levels. The programmes we run focus on encouraging more children, from all walks of life, to take up rugby and continue to play through their teenage years and beyond. This year, Scottish Rugby has continued to support schools and clubs in their partnerships with Club Development Officers and Community Coaches. We have expanded our CashBack Schools of Rugby to 30, where pupils
at S1-S3 age groups take part in up to five sessions per week with a focus on developing core skills, physical competence and establishing new rugby teams. A large part of the year has also been spent on revising our youth and school playing structures to ensure there are a meaningful amount of games at every age group and suitable training sessions.
1,137 games played
548
by school and youth club teams this season
through the Youth Coaching Course to deliver in Primary School and early years of secondary school
Jed Thistle Jed Thistle were rewarded for their hard work with a haul of national and regional trophies, including the under-18 National Youth League Cup and under-18 Kings of the Sevens Series.
Our aim is to translate more playing time and raising the standard of play into higher retention rates when players graduate into the adult game.
Head Coach Garry Goodfellow reflects on their season and the successful culture of the club:
“We teach our players discipline and to respect officials and the opposition. Players that train regularly are rewarded with game time and we encourage players and their families to support the club’s fundraising events.” “We didn’t have a very physical side this year so we worked hard on fitness, skills, set piece and offloading in the tackle, which worked very well for us. We are a close-knit team with all the boys staying in the town or living in the surrounding countryside. We have a very small number of boys to pick from so this makes the success that bit more special.
450 George Watson’s College and Merchiston Castle School play off for the Brewin Dolphin Under-18 Cup at BT Murrayfield
28
Scottish Rugby Annual Report 2014/15
street rugby sessions taking rugby beyond its traditional heart lands
in Clubs
teenagers qualified
We have engaged with schools, clubs and local authorities across the country to develop a new playing structure for schools and clubs next season. Taking this time to discuss and debate the issues will hopefully create an increased focus on the long-term development of players in the clubs and school structure.
Players will also have better skill sets and a competitive maturity that allows them to continue to participate and excel as they progress through the game. street rugby sessions taking rugby beyond its traditional heart lands
4,788
“Jedburgh Grammar is now a School of Rugby so that has increased interest. We also work closely with Jed Forest to ensure our older players continue to play when they outgrow us. I was delighted to win Daily Record Youth Coach of the Season, but this award is for all the players and the coaches - Calum Brown, Douglas Moffat and Gary Hill - and also for the endless work our president Colin Yourston does behind the scenes.”
Leadership . Engagement . Achievement . Enjoyment . Respect
Rugby Sessions
Rugby has the potential to make a significant impact on young people’s lives. It teaches physical, mental and emotional life-skills that endure and contribute to the development of self-reliance and resilience.
34, 678 rugby sessions delivered across Scotland by Club Development Officers.
Schools & Youth
13,563
in Primary Schools
16,327
in Secondary Schools
29
Dominic McKay
“With every pound from ticket sales going back into the game, it was encouraging to see supporters filling BT Murrayfield and Scotstoun this season.”
141% rs
M et
There has been rapid growth at Scotstoun with 3,435 season passes sold this season and two matches selling out largely due to the on-field success of Glasgow Warriors.
The RBS 6 Nations series was the most successful yet in terms of ticket sales.
Sold out in record time
Capacity Crowd
Largest crowd
gh
Ru
2014/15
gby
ho me
ch mat
e
74,591
nc
ha
da
rc
en
u n Pass P
rs
easo
be
em
Supporters through the gates at BT Murrayfield, Scotstoun Stadium and Rugby Park, Kilmarnock.
18,880 74,951 103,657 315,270
Edinburgh Glasgow Rugby 7s Glasgow Warriors
rs S e as o n T
dS
43%
increase over 2 seasons
ur
rio
ic k
an
2014/15
inb
2014/15
ar
10,212
Ed
W
3,435
o
Scotland
Sc
30
tl
increase over 3 seasons
ow
We completed the final stage of our partnership by announcing BT as shirt sponsor for our national and age-grade teams next season, following the BT Sport sponsorship of Edinburgh Rugby and Glasgow Warriors’ match jerseys this season.
89%
sg
We are one year into our partnership with BT and our rugby community has already started to benefit with the rollout of the £1.6 million Club Sustainability Fund and the launch of our BT Sport Scottish Rugby Academy.
increase over 3 seasons
Gla
512,758
From sell-out crowds at BT Murrayfield to Glasgow Warriors lifting the Guinness PRO12 trophy, Scottish Rugby has enjoyed a record-breaking season both on and off the pitch.
se
Commercial Report
at
t
Edinburgh Rugby have a loyal supporter base who enjoyed seeing them reach the final of the European Challenge Cup.
Macron have done an excellent job designing Scotland’s Rugby World Cup kit and the positive response from fans has been fantastic. Initial reports from retailers are that sales have been well above expectations. Announcement of BT as Scotland and age-grades shirt sponsor with Brendan Dick, Managing Director, BT Scotland Royal Bank of Scotland continues to be an important sponsor and it was great to see a record 150 clubs taking part in the Royal Bank of Scotland RugbyForce weekend to gear up for the season. We were delighted to add AG Barr as our soft drink partner, Vitality as our official healthcare partner and Gullivers Sports Travel as our supporter travel partner to our existing sponsors, including blue-chip partners Dove Men+Care, Caledonia Best and Macron.
Scottish Rugby Annual Report 2014/15
The appointment of Pitch International LLP as our international media rights partner will see Scotland’s summer and autumn home Test matches broadcast in more countries, including substantial coverage in the Middle East and North America. Income generated from this agreement shows very strong growth over previous deals. Expanding our commercial family means we can continue to increase our investment into the grassroots game.
Our family day at BT Murrayfield to launch the strip was also a success with approximately 1,500 fans coming to watch Scotland train and meet the players.
“We are focused on delivering great events for our supporters and we have some exciting events lined up for the Rugby World Cup, including creating a homefrom-home advantage through our #tartantakeover campaign.” Dominic McKay, Director of Commercial Operations, Communications & Public Affairs
Jonny Gray, Ross Ford, Richie Gray and Stuart Hogg launch Scotland’s RWC kit.
Leadership . Engagement . Achievement . Enjoyment . Respect
31
Corporate Social Responsibility
Working with Government
Scottish Rugby has supported many causes this season both at home and abroad. Some were borne from tragic circumstances, while others enhanced physical activity among young people through local rugby clubs.
Scottish Rugby continues to move physical activity, and in particular rugby, higher up the political agenda. We work with parties across the political spectrum to demonstrate the value our sport can bring to communities, the nation and Scots around the globe.
We have provided extraneous kit to the Jungle Crows junior rugby club in Calcutta – delivered during a Commonwealth Parliamentary Association delegation visit to India. Edinburgh Rugby and Scotland trio, Tim Visser, David Denton and Matt Scott, took part in the Big Dinner, an initiative inspired by Edinburgh lawyer and amputee Olivia Giles. Her charity 500 Miles supports those in need of artificial limbs in Malawi and Zambia.
Closer to home, we have had the privilege of welcoming terminally ill children and adults plus their families behind the scenes on international match days. We also provided 1,000 Tickets for Troops to the Scotland v Italy match at BT Murrayfield.
We formed an official partnership with Trust Rugby International, Scotland’s only unified rugby club, enabling it to expand from its Ayrshire roots to a branch in Edinburgh. They will represent Scotland in the first unified rugby world championship in Bradford this summer. Unified rugby enables players with a disability to train and play in the same team as non-disabled players.
Our annual Parliamentary Reception took place at Holyrood in January when our main themes were equality of opportunity and closing the gender gap. Vern Cotter and Head of Women and Girls’ Rugby Sheila Begbie answered MSPs’ questions, while Scotland Women’s vice-captain Lisa Martin gave an address on what it means to play for Scotland.
During Scottish Apprentice Week, we hosted the Cabinet Secretary for Fair Works, Skills and Training, Roseanna Cunningham MSP at Currie RFC, where she met our modern apprentice Callum Ramm, 18, who led a rugby festival for around 200 children from Primary 6 and 7 classes in the Currie and Balerno area.
The Scottish Government’s CashBack for Communities has committed over £6 million between 2008 and 2017. The funds from the seized proceeds of crime support a range of Scottish Rugby programmes including school and club sessions, youth coaching courses, Street Rugby and Schools of Rugby. Additional funding has also been invested into improving rugby club facilities across Scotland.
£6M committed by
£ Scotland’s new Minister for Sport, Health Improvement and Mental Health, Jamie Hepburn MSP, was Scottish Rugby’s guest at the Daily Record Festival of Rugby during the Emirates Airline Glasgow 7s. He also attended the official opening of the new artificial pitch at Currie RFC, funded by Cashback for Communities.
G4S has forged close links to Game On, which is funded by Wooden Spoon and supported by Scottish Rugby. The programme helps young people develop life skills through rugby. Since 2013, the scheme has worked with over 40 young people and seen many secure employment, modern apprenticeships, college courses and recruitment to the armed services.
Scottish Rugby has engaged with East Ayrshire Council, which has been an enthusiastic supporter of our Schools of Rugby initiative, and won additional funding to double the Schools of Rugby in the area to four over the next three years.
Six Parliamentary motions were passed this year. Brothers Richie and Jonny Gray were congratulated for playing their first Scotland game together against Argentina and a motion welcomed the unveiling of the first BT Sport Scottish Rugby Academy in Caledonia.
Support also continued for our core charities, which have strong links to the rugby family;
Hearts & Balls HELPING RUGBY HELP ITS OWN
32
Scottish Rugby Annual Report 2014/15
Leadership . Engagement . Achievement . Enjoyment . Respect
33
Social Media
Facebook After launching 18 months ago, our Scottish Rugby Facebook page has solidified its place as our largest social media touch point with over 120,000 fans wanting to interact with news and photos from within the Scotland camp.
Scottish Rugby fans can access all the latest news and activity from our international and pro sides all the way down to the grassroots game through more channels than ever before. Engagement via our social media channels continues to increase with Facebook remaining our most popular platform. Over on Twitter, we have continued to gain followers and @Scotlandteam now has over 100K followers.
We have utilised Periscope to live stream games, post-match interviews and the first round of the BT Cup draw. We have also embraced Vine to create six-second looping videos to give fans a behind the scenes look at the Scotland team’s training and match-preparation.
New features have included a Q&A session with Scotland and Glasgow Warriors’ flanker Rob Harley and more competition formats. Scottish Rugby
O
#A CK S I
NE LUE
N
GB
34
Scottish Rugby Annual Report 2014/15
124,321
Edinburgh Rugby
18,712
Glasgow Warriors
32,424
scottishrugby.org
YouTube
scottishrugby.org is our central online source of news and information about everything that is happening within rugby in Scotland. The website encompasses fixtures and results from the domestic game through to full match reports and videos from the Scotland international team.
Scottish Rugby TV covers everything from interviews, insights, highlights and match coverage across all levels of rugby in Scotland. Games, including the BT Cup final and BT Premiership final, were shown live on the channel.
Page Views*
Site Visits*
Unique Users*
4% 11% 11% to 11.1m
to 3.5m
to 1.4m
*In the year ending June 30 2015.
#BA
Facebook Likes**
thescotlandteam.com was launched as a central hub for Scotland’s Rugby World Cup campaign. It kicked off with the Trophy Tour in June and will follow the squad’s preparations, including the summer series, right through to the tournament itself. It was designed to seamlessly work across all devices from smartphones and tablets to desktop computers and will allow fans to remain close to the action whether attending the game, at home or at their local clubs.
We also streamed Heriot’s historic 125th anniversary match vs Barbarians, which resulted in over 13,000 views. Our Rugby World Cup kit reveal video is our most popular yet and has had over 39K views and counting. 2,101,634 minutes of viewing time have been clocked up on the main Scottish Rugby YouTube channel since July 1 2014. This is the equivalent of four years and these supporters are accessing our content everywhere from Dingwall to Dominica.
Instagram
twitter
Our Instagram accounts offer fans a highly visual look behind the scenes of Scottish Rugby, Edinburgh Rugby and Glasgow Warriors
The @scotlandteam remains one of our most popular social media avenues with fans who want to find out the latest news as it happens. Scotland fixtures are often live-tweeted giving fans another way of following the action.
The Scottish Rugby account has surpassed 10K followers and over 11,800 photos have been uploaded by supporters using #backingblue.
Youtube** Mins
Views Members
SR TV 4,789,821 1,650,569
5,606
ER TV
219,198
188,828
864
GW TV
311,895
789,918
2,031
Instagram Followers**
Our #AsOne and #BackingBlue hashtags have been a success as fans utilise them to categorize tweets about the Scotland team. We also launched the #tartantakeover campaign to foster a home-from-home advantage in England this autumn for the RWC.
twitter Followers**
Scotland 10,300
@Scotlandteam 101.3K
Edinburgh Rugby
3,336
@EdinburghRugby
Glasgow Warriors
8,500
@GlasgowWarriors 34.2K
26.8K
**Figures as of 17 July 2015.
Leadership . Engagement . Achievement . Enjoyment . Respect
35
Health & Safety Focus on H&S Over 130 staff attended briefing sessions to raise awareness of the roles and responsibilities for health and safety throughout the business. The session also gave staff an opportunity to talk openly about their perception of health and safety within Scottish Rugby. This information will be used to help shape the priorities for the forthcoming year. Better Disabled Facilities The 100th Changing Places Toilet in Scotland was opened at BT Murrayfield in December 2014. It includes a height adjustable changing bench and hoist, and will ensure that we can welcome all visitors and spectators, regardless of their disability and personal needs, to events held at the stadium.
Improved communications The Corporate H&S Committee has been restructured to improve communication, consultation and planning for health and safety throughout the business. New local groups have been established to promote discussion at a grassroots level whilst identifying and reviewing key risks within each department. First Aid in Rugby The new World Rugby First Aid in Rugby Level 1 course was launched this season and delivered to 148 people. RugbyReady This mandatory, practical course was completed by 3,434 coaches, teachers and referees this season.
First Aid Response On non-match days we have 12 qualified first-aiders on site. We also have three defibrillators strategically located around BT Murrayfield and all first-aiders have received training to ensure a quick response to a cardiac arrest suffered on site. Event Safety We welcomed nearly 1,000 wheelchair users to our international rugby fixtures during the season. All fixtures were delivered safely with no significant public safety issues or disorder. Flu Vaccines All the professional players and more than 80 Scottish Rugby staff received the flu vaccination in October to ensure business continuity during the winter rugby season.
Scotland team doctor and Scottish Rugby’s Chief Medical Officer Dr James Robson backed the launch of the Scottish Government leaflet this season advising coaches, teachers and parents on how to spot the signs of concussion and what action to take. The publication underlines the thinking, ‘If in doubt, sit them out’ and is based on World Rugby’s clear grassroots guidance on concussion.
“Scottish Rugby has, for many years, been working with like-minded institutions and experts to put player welfare to the forefront of our sport.
36
Scottish Rugby Annual Report 2014/15
Boroughmuir
U18 Cup
George Watson’s College
BT Shield
St.Boswells
U16 Cup
Merchiston Castle School
BT Bowl
Alloa
U18 Shield
Glenalmond College
Sarah Beaney Cup
Murrayfield Wanderers
U18 Plate
Earlston High School
BT Women’s Plate
Stewartry
U16 Shield
Stewart’s Melville College
BT Women’s Bowl
Watsonians
U16 Plate
Hawick High School
BT Premiership
Heriot’s
Girls U18 Cup
Murrayfield Wanderers
BT National Division 1
Selkirk
Girls U18 Shield
Caithness
BT National Division 2
Musselburgh
Girls U18 Bowl
Community School of Auchterarder
BT National Division 3
Lasswade
Girls U15 Cup
Biggar
BT Women’s Premier League
Murrayfield Wanderers
Girls U15 Shield
Hillhead Jordanhill
Girls U15 Bowl
Oban High School
BT Women’s National Division 1 Cartha Queens Park BT Women’s National Division 2 Glasgow University BT Caledonia League 1
Orkney
BT Caledonia 2 Midlands
Carnoustie HSFP
BT Caledonia 2 North
Aberdeenshire 2nd XV
BT Caledonia 3 Midlands
Kirkcaldy 2nd XV
BT Caledonia 3 Midlands East
Arbroath
BT Caledonia 3 Midlands West
Stirling County 3XV
BT Caledonia 3 North
Deeside
BT Caledonia 4 Midlands
Stobswell
BT Caledonia 4 North
Highland 2nd XV
“This is building on work we’ve done at Scottish Rugby, including our ‘Are you ready to play rugby’ programme, which teaches good technique and risk management. It also teaches participants that sport is good for you and there are possible risks, but if you’re careful then you can enjoy a healthy lifestyle.” Dr James Robson
BT West Division 1
GHK
BT West Division 2
Oban Lorne
BT West Division 3
Cumnock
BT West Division 4
Moffat
BT East Regional Division 1
Berwick
BT East Regional Division 2
St.Boswells
BT East Regional Division 3
Ross High
Dr Robson also encouraged former Scotland rugby players to participate in a groundbreaking study by University of Glasgow researchers on the effects of concussion and whether there is evidence that head injuries in rugby have any long-term health effects.
Youth Results
“If in doubt, sit them out” Scottish Rugby was a driving force behind new cross-sport guidelines on concussion, which was developed by leading experts.
Brewin Dolphin Schools Results
Club Results BT Cup
“The launch of national guidelines for the recognition and management of concussion across all sports in Scotland marks a new standard in collaborative care, and one which I hope others will copy.
Club Awards of the Season BT Club
Orkney
BT Women’s Club
Murrayfield Wanderers
Caledonia Best Coach
Phil Smith, Heriot’s
Daily Record Youth Coach
Garry Goodfellow, Jed Thistle
Referee
Alex Pratt
Spirit of Rugby Award
Jim and Mary Inglis, Selkirk
BT Volunteer
Lee Anne Steel, Livingston
Frank Coutts Memorial Try
Jason Hill, Heriot’s
Player of the season awards BT Premiership
Jason Hill, Heriot’s
BT National Leagues Division 1
Nick McCashin, Stew-Mel FP
BT National League Division 2
Chris Mason, Howe of Fife
BT National League Division 3
Douglas Hearn, Lasswade
National U18 Youth Cup
Jed Thistle
BT Caledonia Divisions
Scott Rendall, Orkney
National U16 Youth Cup
Ayr & Stirling County
BT East Divisions
Keir Hamilton, RDVC
National U18 Bowl
Melrose Wasps
BT West Divisions
Dan Hull, Oban Lorne
National U16 Bowl
Biggar
BT Women’s Premier League
Emma Bree, Melrose
Scottish Rugby U18 League
Currie
BT Women’s National Division 1 Alison Henderson, Stewartry
Scottish Rugby U16 League
Currie
BT Women’s National Division 2 Victoria Harper, Grangemouth
Leadership . Engagement . Achievement . Enjoyment . Respect
37
Strategic Report The Directors present their Strategic Report for the year ended 31 May 2015. Principal Activities
made during the year for the new International pitch. Interest charges fell to £0.6m, compared with £0.7m in the period to 31 May 2014.
The principal activity of the Scottish Rugby Union is to promote the game of Rugby throughout Scotland, using its wholly owned subsidiary Scottish Rugby Union plc for all trading activities.
The Directors continue to monitor borrowing levels, income and expenditure against budget on a monthly basis. They also monitor other key business issues including Professional and National Team performance which are fundamental to the Union’s strategy of growing the game within a stable commercial environment.
Business Review The Union continues to work towards the objectives outlined in its Policy Initiatives, specifically in the areas of academies, coaching, the women’s game, schools, clubs, and refereeing. The implementation of these initiatives has continued in the course of the year.
On pages 46 to 60, the Directors present their report and audited consolidated Financial Statements for the year ended 31 May 2015. The Financial Statements comprise the consolidated financial statements of the Union and its subsidiary.
The Union has achieved a £24k surplus for the year (period ended 31 May 2014: surplus of £0.9m). Turnover was £0.5m higher than in the period to 31 May 2014, with additional sponsorship income from the BT agreement and higher ticket revenues from three home Six Nations matches compared with two in the prior period being offset by reduced broadcast income from Six Nations and the effects of the depreciating euro. Other income was £0.1m lower than in the period ended 31 May 2014, with various offsetting factors affecting this. Increased sponsorship from BT is partially offset by there being no income from the British & Irish Lions Tour this year, a 12 month period against a 13 month period last year, and other smaller changes in incomes relating to grants and other income. Within the expenditure categories, there are the effects of returning to a 12 month period from the 13 month period in 2013/14, together with increases in investment in a number of areas of the game. Club Support and Development shows a 23% increase compared with the prior period, which itself showed a 16% increase compared with 2012/13. This year, the increase relates mainly to the funding available from the new Club Sustainability Fund, made possible through the BT deal. International and Professional Rugby, which represents the Union’s largest cost base, although similarly represents the largest income generating area, has dropped from £23.6m to £22.8m, where the effects of the period length were partially offset by higher National Team tour investment and additional Pro Team coaching and off-field investment. Investment in Community & Performance Rugby has increased from £5.0m to £6.2m, both through the increased resource being made available for Domestic Rugby, but also through enhanced expenditure in the
38
Scottish Rugby Annual Report 2014/15
Financial Risk Management The risk management framework of the Union is well established with the ongoing identification, evaluation and status of business risks being presented formally to the Audit Committee, Scottish Rugby Board and Council, periodically. Financial Instruments
Gregor Townsend and Vice-President Edward A. Crozier BT Academies. Commercial and Operational costs increased from £10.1m to £10.9m reflecting the increased focus on generating income, together with continuing higher investment in the maintenance of BT Murrayfield Stadium. Similarly, there were a number of additional events in 2014/15 compared with 2013/14 including the One Direction concert, and an additional 6 Nations match, with associated costs. Depreciation fell to £1.1m as a result of the profile of the asset base. Average bank borrowings over the year amounted to £8.6m, which is £1.6m below the level during the period to 31 May 2014, generally as a result of funds from World Rugby received in advance of Rugby World Cup. Year end bank borrowings of £8.1m are £0.3m above the previous period level, principally as a result of working capital movements, in particular payments
The Union uses interest rate swaps to reduce its exposure to interest rate movements. Details of this are noted in the Accounting Policies and in Note 8 to the Financial Statements. The Union also uses forward sale currency contracts to reduce its exposure to exchange rate movements. Details of this are noted in the Accounting Policies and in Note 7 to the Financial Statements. Financial instruments are not used for speculative purposes.
By order of the Board
Robert M Howat Secretary Edinburgh, 23 July 2015
Leadership . Engagement . Achievement . Enjoyment . Respect
39
Governance Patron
President
Vice President
Her Royal Highness, The Princess Royal
Edward A. Crozier
Ian Rankin
Scottish Rugby Council Ian Rankin
President
Edward A. Crozier
Vice-President
Peter Laverie
Premier Division
Dr Doug Ward CBE
National Division
Graeme Scott
Championship Divisions
Ian Barr
Championship Divisions
Jim Littlefair
Edinburgh Regional League
Jim Stevenson Glasgow North Regional League Bill McMurtrie
Glasgow South Regional League
Alan Brown Scottish Borders Regional League
40
Graham Kerr
Midlands Regional League
Mike Monro
North Regional League
Fergus Neil
Scottish Rugby Referees Assoc.
Bruce Thompson
Schools Division
Dee Bradbury
Women’s Rugby Forum
Rod Lynch
Exile Clubs
John Jeffrey
Co-opted member (World Rugby & Six Nations)
Archie Ferguson
Co-opted member (Rugby Europe)
Scottish Rugby Annual Report 2014/15
At the AGM on 16 August 2014 Ian Rankin succeeded Donald Macleod as President and Edward A. Crozier was elected as Vice-President of the Union after a contested election. Graeme Scott joined the Council, replacing John Steele as the National 2 representative. John Jeffrey and Archie Ferguson, in their capacities as Scottish Rugby’s representatives on international bodies, continued to serve during the year as non-voting co-optees to the Council. Ian Rankin chaired the Council with the Vice-President, Edward A. Crozier acting as the Vice-Chair. The Council met 11 times during the financial year, including meeting immediately after the AGM to elect Council representatives to the Board, quarterly reviews, two joint strategy and briefing sessions with the Board and additional briefing meetings. The Council is responsible, among other things, for reviewing the operational activity delegated to the Board, developing and fostering the game of rugby in Scotland, reviewing and advising on matters of policy and strategy and developing relationships within the game at both domestic and international levels. Council members continued to participate in a number of working groups throughout the year including season structures and governance review and in ambassadorial capacities supporting the various age-grade and women’s national teams.
Ian Rankin Elected as Vice-President at the 2013 AGM, Ian served as President this season. A former captain of Edinburgh Wanderers and Howe of Fife, he went on to coach both sides and Kirkcaldy before taking charge of Caledonia Reds and Edinburgh Reivers. He also assisted with Scotland A and Scotland under-20 before holding the Director of Rugby position at Dundee HSFP.
Jim Littlefair Jim is a business consultant and chairman of the Hearts and Balls Charitable Trust.
Edward A. Crozier Ed was elected Vice-President at the 2014 AGM. He previously served on the Scottish Rugby Council as the Glasgow North Regional Representative and as a Scottish Rugby Board member. He also serves as a director on the board of Celtic Rugby Limited, the organiser of the Guinness PRO12 competition.
Bill McMurtrie With nearly 40 years’ experience in rugby-related media, Bill is renowned for his vast knowledge of the game both in Scotland and internationally, still lending that experience to Scottish Rugby’s annual Rugby Record. Bill is an honorary member of Tennis Scotland and was a member of the Scottish Wildlife Trust Council for 20 years from 1977.
Dee Bradbury President of Oban Lorne and Secretary of Argyll and Bute, Dee has been an employee of Police Scotland since 1984. The former manager of Scotland Women under-18, she is an established athlete and has represented both Scotland and Great Britain in athletics as well as playing representative netball.
Mike Monro A member of Aberdeenshire RFC since 1971, Mike has served as Secretary and President. He refereed for a number of years after retiring from playing.
Alan Brown A keen rugby player and Chartered Accountant, he has worked in the social housing sector for the past 31 years and is currently the Director of Finance and Corporate Services for the Eildon Housing Association Ltd. Archie Ferguson Archie serves as an ex officio member of the Council due to his position as one of Scottish Rugby’s representative at Rugby Europe. A former teacher, deputy head and education inspector, Archie has been involved with rugby at all levels of the game, including spells as a Board director of Scottish Rugby and Celtic Rugby Limited. John Jeffrey John won 40 caps for Scotland and was a member of the Grand Slam team of 1990. He was also a British Lion and continues to promote Scottish Rugby’s interests through serving as an ex officio member of the Council by representing Scottish Rugby at World Rugby and on the Six Nations Council. Graham Kerr Graham has been a member of Alloa RFC for many years, serving the club as a player, Coach, Secretary and VicePresident. As a rugby administrator, Graham was employed as Caledonia Rugby Administration Executive between 1997 and 2006. Since 2006 he has served on the Caledonia Competitions Committee and is currently Caledonia Midlands Age Grade Convenor. Peter Laverie The former Head Coach of Ayr and Cartha Queens Park is now forwards coach at Glasgow Hawks. Peter is also a Senior Lecturer at Glasgow Clyde College.
Leadership . Engagement . Achievement . Enjoyment . Respect
Rod Lynch Rod is a member and new Chief Executive of London Scottish. He was elected as the first Scottish Exile Clubs Representative on the Council prior to the 2012 AGM.
Fergus Neil A referee for eight years then a referee assessor, Fergus is a World Rugby accredited Performance Reviewer and has served as such at the Under-21 World Championships. He chaired the 2007 Scottish Rugby Match Officials Restructure Group and was Chairman of Scottish Rugby’s Match Officials’ Selection Panel from inception until his election to the Council. Graeme Scott Graeme Scott joined the Council following the 2014 AGM. Prior to his appointment, Graeme served as the Championship Club Forum Secretary and he remains Honorary Secretary of Whitecraigs RFC. Jim Stevenson Jim played rugby for Rutherglen, Cambuslang and Dalziel. He represented Glasgow and District Union and Lanarkshire during a career spanning over 30 years. A retired local government offer with Glasgow City Council, Jim was Scottish Rugby President from 2008 to 2010. Bruce Thompson An Oxford graduate in classics, Bruce is Head Teacher of Strathallan School and the Scottish representative on the Headmasters’ Conference Sports Committee. He also chaired the HMC Committee that looked into rugby safety issues liaising closely with Scottish Rugby. Doug Ward A current member and past President of Biggar, Doug is the Chairman of Celtic Renewables Ltd and a Vice-President of the European Biodiesel Board. He was appointed CBE in 2006 for services to agriculture in Scotland and received an honorary doctorate in 2010 from Edinburgh Napier University.
41
Sir Moir Lockhead OBE Originally a mechanical engineer, Moir went on to be Chief Executive of First Group plc, and was appointed as the Chairman of the Scottish Rugby Board on 1 July, 2011. Awarded a knighthood for services to transport in 2008, following an OBE in 1996, he was re-appointed to the Board for a further three years from 1 July 2014. He also chairs the Nomination Committee.
Scottish Rugby Board As at the financial year end, the Directors of the Boards of Scottish Rugby Union and Scottish Rugby Union plc and their terms of office were: Sir Moir Lockhead Independent non-executive, Chairman Originally appointed 1 July 2011 for 3 years. Re-appointed for a further 3 years with effect from 1 July 2014. Ian Barr Council nominated non-executive Appointed 22 June 2013 for 2 years. Current term expires AGM 2015. Mark Dodson Chief Executive Appointed 19 September 2011. Colin Grassie Independent non-executive Appointed 1 July 2012 for 3 years. Re-appointed for a further 3 years with effect from 1 July 2015. Andrew Healy Finance Director Appointed 22 August 2013. Ian McLauchlan Independent non-executive Appointed 1 July 2012. Re-appointed for a further 3 years with effect from 1 July 2015. Dominic McKay Director of Commercial Operations, Communications & Public Affairs Appointed 22 June 2013. Mike Monro Council nominated non-executive Appointed 6 December 2012. Re-appointed 16 August 2014 for 3 years. Fergus Neil Council nominated non-executive Appointed 1 July 2012. Re-appointed 22 June 2013 for 3 years. Ian Rankin Council nominated non-executive (President as Chair of Council) Appointed 16 August 2014 for 1 year – expires at AGM 2015. Lesley Thomson, QC Independent non-executive Appointed 1 October 2013 for 3 years.
42
Scottish Rugby Annual Report 2014/15
The Scottish Rugby Board is responsible for the ongoing management and operations of Scottish Rugby, under powers delegated to it under the Bye-Laws. The Scottish Rugby Board, which also serves as the Board of Scottish Rugby Union plc, comprises four independent non-executive Directors, four nonexecutive Directors nominated by the Scottish Rugby Council (one of the four being the President in his capacity as Chairman of the Council) and three executive Directors. Colin Grassie is the Senior Independent Director. Executive Directors serve under the terms of their employment or service contracts. The independent non-executive Directors are appointed for terms of three years and would normally be expected to serve for two terms. Appointment of the independent non-executive Directors is by the Board, on the recommendation of the Nomination Committee and subject to ratification by the Council. The Council nominated non-executive Directors are appointed, or reappointed as the case may be, by the Council after the AGM. Their terms in office vary; under the current Bye-Laws the President, as Chairman of Council, serves as a Director for one year. Other Council nominated non-executive Directors may serve for up to three years at a time, subject to remaining a member of Council. Eligibility for re-election depends on remaining a member of Council and the application of the Bye-Laws. On ceasing to be a member of Council, a Council nominated non-executive Director is also required to step down from the Board. The Board met 11 times during the year, including a separate strategy session and the two joint briefing sessions with the Council. The Vice-President attends Board meetings as an observer but is not entitled to vote. The Board conducts an annual evaluation of its performance with the outcomes reported to the Board as a whole and procedures adjusted as appropriate following that appraisal.
Mark Dodson Starting his career in 1979 at the Guardian Media Group, Mark became Chief Executive of Guardian Media Group Regional Media in 2005 and was appointed to the Guardian Media Group Board. He was appointed as Chief Executive in September 2011 and is one of Scottish Rugby’s representatives with European Professional Club Rugby, the 6 Nations Council, World Rugby and the British & Irish Lions.
Ian McLauchlan Ian played for Jordanhill, Glasgow and Natal, was capped for Scotland 43 times (19 as captain) and played in all Tests of the successful British Lions Tours of New Zealand in 1971 and South Africa in 1974. He served two terms as Scottish Rugby President, is a non executive member on the Scottish Rugby Board and is one of Scottish Rugby’s representatives with European Professional Club Rugby. Ian Rankin Elected as Vice President at the 2013 AGM, Ian has served as President this season. The former captain of Edinburgh Wanderers and Howe of Fife went on to coach both sides and Kirkcaldy before taking charge of Caledonia Reds and Edinburgh Reivers. He also assisted with Scotland A and Scotland under-20 before holding the Director of Rugby position at Dundee HSFP. Dominic McKay Director of Commercial Operations, Communications & Public Affairs, Dominic joined Scottish Rugby in January 2008 from his previous post at drinks giant Pernod Ricard. He is one of Scottish Rugby’s representatives on Celtic Rugby Limited (CRL) and Rugby Europe. A keen sailor, he is Chairman and Trustee of the sailing charity Ocean Youth Trust Scotland. Mike Monro A member of Aberdeenshire RFC since 1971, Mike has served as Secretary and President. On retiring from playing, he refereed for a number of years and sits on the Scottish Rugby Council.
Ian Barr Instrumental in setting up the Midlothian Rugby Development Group, Ian has served as President of Lasswade RFC for a number of years and sits on the Scottish Rugby Council. Colin Grassie Born in Glasgow, Colin joined the Board on 1 July 2012. He chairs the Remuneration Committee and is the Senior Independent Director. He also sits on the Advisory Board of Winning Scotland and is chair of the Development Trust of the Glasgow School of Art. Andrew Healy Joining Scottish Rugby in 2007 as Financial Controller, Andrew was appointed to the Board as Finance Director in 2013. A Chartered Accountant and born in Glasgow, he played with GHA for a number of years, before retiring and taking up refereeing for a further nine years. He played for Glasgow Schools, Glasgow under-18 and Glasgow under-21 and represents Scottish Rugby on the ERC Finance Committee.
Leadership . Engagement . Achievement . Enjoyment . Respect
Lesley Thomson QC Scotland’s Solicitor General and a former general committee member at Melrose RFC, Lesley was the first woman to sit on the Scottish Rugby Board when she was appointed in 2013. Fergus Neil A referee for eight years then a referee assessor, Fergus is an IRB accredited Performance Reviewer and has served as such at the World Rugby under-21 World Championships. He chaired the 2007 Scottish Rugby Match Officials Restructure Group and was chair of the SRU March Officials’ Selection Panel from inception until his election to the Council. Fergus acts as Chair of the Audit Committee. Robert Howat Robert joined Scottish Rugby as General Counsel in January 2013 and oversees the Legal and Governance Department. Prior to taking on this role he was company Secretary at Celtic FC for 11 years.
43
Board Committees
Governance Standards
During the period, the Board operated three sub-committees to assist with the delegation and management of its business. Membership of Board committees is restricted to non-executive Directors and includes at least one Council nominated nonexecutive director on each committee. Executive Directors and other members of staff and external advisers attend meetings regularly as required. Each committee has detailed terms of reference approved by the Board and Council.
All members of the Board and Council are required to comply with Scottish Rugby’s Code of Conduct. Under the Code of Conduct any alleged breach of the Code is subject to consideration by an independent panel. No breaches or alleged breaches were reported in the year.
The Chairman of each committee presents a report to the Board on the committee’s work at the next Board meeting. Audit Committee (Chair: Fergus Neil) Mike Monro, Fergus Neil and Lesley Thomson served on this Committee during the financial year. The Committee is responsible for assisting the Board to discharge its responsibilities for accounting policies, financial reporting, internal financial control and risk management. The Committee met 4 times during the financial year. Committee meetings are attended routinely by the Financial Director, the Financial Controller, the Company Secretary and representatives from the Union’s auditors. Nomination Committee (Chair: Sir Moir Lockhead) Ian Barr, Sir Moir Lockhead, Ian McLauchlan and Ian Rankin served on the Committee during the financial year. The Chief Executive and Company Secretary also attend the Committee’s meetings. This Committee is responsible for making recommendations to the Board as to the membership of the Board and its Sub-Committees, the identification and recruitment of new Directors when required and the identification and appraisal of international body representatives. Advice is taken from external consultants as required. The Committee met 3 times in the year. Remuneration Committee (Chair: Colin Grassie)
Development of Corporate Governance During the year a Review Panel was formed by the Council, with an Independent Chairman (Rob Flockhart) for the purpose of examining governance issues. These included considering the role and terms of office of the President and Vice-President and Council electoral constituencies. Following a consultation exercise the Review Panel’s recommendations on the first of these subjects were delivered to the Council in April 2015 and form the basis for two of the resolutions to be proposed by the Council and Board at the 2015 AGM. The Council and Board remain committed to the continuing development and improvement of our governance structures. Work in relation to Council electoral constituencies and other governance matters is intended to continue during the 2015/16 financial year. Remuneration and Benefits of Non-Executive and Council Board Representatives The Union offers its non-executive Board members, including Council representatives on the Board, a fee for their service. The annual rates of fee applied for the non-executive Board members serving at the financial year end are set out below. These amounts are pro-rated for part years. Board members are also entitled to be reimbursed for expenses incurred wholly, exclusively and necessarily on Scottish Rugby business. Due to the application of Scottish Government rules on other appointments Lesley Thomson continued to waive any entitlement to fees.
Colin Grassie, Mike Monro, Ian McLauchlan and Lesley Thomson served on the Committee during the financial year. The Committee is responsible for making recommendations, within agreed terms of reference, on remuneration policies, monitoring and approving executive directors’ and certain senior executive remuneration packages, setting and monitoring key performance targets and reviewing succession planning. Approval of the remuneration of senior coaches and higherearning players also falls within the Committee’s remit. The Committee met four times during the financial year. The Company Secretary attends meetings, with the Chief Executive attending as required. Advice is taken from external consultants when needed. Lesley Thomson QC
44
Scottish Rugby Annual Report 2014/15
Leadership . Engagement . Achievement . Enjoyment . Respect
Director’s Representative Fee Bodies’ Fee
Total
£
£
£
Sir Moir Lockhead
35,000
-
35,000
Ian Barr
15,000
-
15,000
Colin Grassie
15,000
-
15,000
Ian Rankin
15,000
-
15,000
Ian McLauchlan
15,000
10,000 (ERC)
25,000
Mike Monro
15,000
-
15,000
Fergus Neil
15,000
-
15,000
0
-
0
Lesley Thomson
Council members serving as international representatives for Scottish Rugby Union are also entitled to be paid a fee for their services on those bodies. The annual rates of fee for those individuals in office at the financial year end are set out in the table below. Fees are subject to pro-rating for part years. Position Held
Paid by
Value
£
Edward A. Crozier Archie Ferguson John Jeffrey
CRL
CRL
7,000
Rugby Europe
SRU
7,000
World Rugby and 6NC
World Rugby and 6NC
25,000
Notes: 1.
These rates were not changed in the financial year.
2.
Members of the Scottish Rugby Council receive no remuneration in respect of their elected roles although are entitled to recover expenses incurred wholly, exclusively and necessarily on Scottish Rugby business in accordance with Scottish Rugby’s expenses policy.
3.
World Rugby, Six Nations Committee (6NC) and Celtic Rugby Limited (CRL) compensate the representatives/ directors serving on those bodies and the service fees paid to the Scottish Rugby representatives involved were as noted. Fees payable by those bodies during the financial year to Mark Dodson and Dominic McKay were disclaimed by the individuals and are retained by Scottish Rugby.
4.
Dominic McKay served as a director of Celtic Rugby Limited during the year, with Mark Dodson and Ian McLauchlan being Scottish Rugby’s nominated board members of European Professional Club Rugby.
45
Board Report The Directors present their Report and the audited financial statements for the year ended 31 May 2015. An overview and review of the Union can be found in the Business Review, within the Strategic Report on page 38. Going Concern The Directors believe that the Union has adequate resources to continue in operational existence for the foreseeable future and it therefore continues to adopt the going concern basis in preparing the Financial Statements. Employees Scottish Rugby recognises the value and importance of promoting equal employment opportunities for its current and future staff and considers all forms of discrimination to be unacceptable in the workplace. We aim to be an inclusive organisation where everyone is treated with dignity and respect and where diversity is valued across all of the recognised equality strands detailed within the Equality Act 2010. The organisation is committed to providing equal opportunities throughout recruitment, employment, training and career development and has a comprehensive Equal Opportunities Employment Policy, Equality and Diversity Policy and several other related policies that support the nine protected characteristics within the Equality Act. We are committed to adopting equitable employment practices and terms and conditions which are based on the merits, ability and potential of individuals, and to avoiding any conditions or requirements that cannot be justified by the needs of the job. As an example of this equitable approach, Scottish Rugby has been granted the Positive About Disabled People award by Job Centre Plus, recognising our commitment to equality and confirming that applications from disabled people are always positively considered by the organisation. In addition to our employment practices, Scottish Rugby has achieved the Intermediate Level of the Equality Standard: A Framework for Sport which is a collaborative effort between the four national Sports Councils, UK Sport and equality organisations to achieve measurable stands of equality. Scottish Rugby has also been awarded the Preliminary Level of the Equality Standard through our efforts and commitment to make rugby in Scotland open to all. A significant amount of work has been undertaken in producing and implementing our Equality and
46
Scottish Rugby Annual Report 2014/15
Diversity Plan, which can be located on our website, and we have appointed an Equality Champion. In addition we have recruited an Equality and Outreach Manager. This role has been instrumental in imbedding equality and diversity and progressing actions within our plan. Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of their business units and of the company as a whole. Communication with all employees continues through e-mail communication, team meeting briefings and the distribution of the Annual Report. Statement of Directors’ responsibilities The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the Union’s Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Union and of the surplus or deficit of the Union for that period. In preparing these Financial Statements, the Directors are required to: •
select suitable accounting policies and then apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent;
•
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Financial Statements;
•
prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Union will continue in business.
Leadership . Engagement . Achievement . Enjoyment . Respect
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Union’s transactions and disclose with reasonable accuracy at any time the financial position of the Union and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the Union’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors and Disclosure of Information to Auditors So far as each Director is aware, there is no relevant audit information (that is, information needed by the Union’s auditors in connection with preparing their report) of which the Union’s auditors are unaware. Each Director has taken all the steps (such as making enquiries of other Directors and the auditors and any other steps required by the Director’s duty to exercise due care, skill and diligence) that he or she ought to have taken in his or her duty as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Union’s auditors are aware of that information. Directors The Directors of Scottish Rugby Union plc who held office during the period, and up to the date of signing the Financial Statements, are noted on page 42.
By order of the Board Robert M Howat
Secretary Edinburgh, 23 July 2015
47
Financial Statements Independent Auditors’ Report to the Members of the Scottish Rugby Union Report on the Group Financial Statements Our Opinion
Other matters on which we are required to report by exception
In our opinion Scottish Rugby Union’s consolidated financial statements (“the Financial Statements”):
Adequacy of accounting records and information and explanations received
•
give a true and fair view of the state of the Union’s affairs as at 31 May 2015 and its surplus and cash flows for the year then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.
What we have audited The Financial Statements, comprise: •
the consolidated balance sheet as at 31 May 2015;
•
the consolidated income and expenditure account for the year then ended;
•
the consolidated cash flow statement for the year then ended;
•
the accounting policies; and
•
the notes to the Financial Statements, which include other explanatory information.
The financial reporting framework that has been applied in the preparation of the Financial Statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Strategic Report and the Board Report for the financial period for which the Financial Statements are prepared is consistent with the Financial Statements.
48
Scottish Rugby Annual Report 2014/15
Under the Companies Act 2006 we are required to report to you if, in our opinion, we have not received all the information and explanations we require for our audit. We have no exceptions to report arising from this responsibility. Directors’ remuneration Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.
Responsibilities for the Financial Statements and the audit Our responsibilities and those of the directors As explained more fully in the Statement of directors’ responsibilities set out on page 47, the directors are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the Financial Statements in accordance with applicable law and International Standards on Auditing (UK & Ireland) (“ISAs (UK & Ireland)”). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
free from material misstatement, whether caused by fraud or error. This includes an assessment of: •
whether the accounting policies are appropriate to the Union’s circumstances and have been consistently applied and adequately disclosed;
•
the reasonableness of significant accounting estimates made by the directors; and
•
the overall presentation of the Financial Statements.
We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the Financial Statements. We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both. In addition, we read all the financial and non-financial information in the Financial Statements (the “Annual Report”) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Kenneth Wilson (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh, 23 July 2015
What an audit of financial statements involves We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the Financial Statements are
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Principal Accounting Policies The Financial Statements have been prepared under the historical cost convention, and on a going concern basis, in accordance with the Companies Act 2006 and applicable Accounting Standards in the United Kingdom. A summary of the more important accounting policies, which have been applied consistently, is set out below. Basis of Consolidation The consolidated Financial Statements cover the year to 31 May 2015 and include the Scottish Rugby Union, a mutual organisation, its subsidiary undertakings Scottish Rugby Union plc and The Murrayfield Experience Limited, and a related body, the Thistle Rugby Trust. The parent body, the Scottish Rugby Union, has not traded during either the current period or previous year and its only assets and liabilities are its investment in, and loans from, Scottish Rugby Union plc of £50,000. Turnover Turnover represents ticket sales, broadcasting revenue and all other income and is stated net of VAT. Revenue is recognised based on the relevant contractual terms or in accordance with the occurrence of the relevant event. Where consideration is received in kind, income and expenditure are grossed up on the basis of arms length commercial rates. Tangible Fixed Assets The cost of tangible fixed assets is their purchase cost, together with any incidental costs of acquisition. Significant sums are spent on maintenance of the Union’s main asset, BT Murrayfield Stadium, therefore the de-minimus level for capitalisation of assets has been set at £10,000 for the first three asset categories below and at £5,000 for Other equipment. Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. The straight line basis is used in respect of all assets and the principal annual depreciation rates are: % Land Nil Stands and Heritable property 1-20 Fixtures and fittings 4-25 Other equipment 7-50 No depreciation is charged on Assets under Construction. Deferred Income Capital grants and debenture premiums are transferred to deferred income and amortised over the estimated useful life of the associated fixed assets or the life of the debenture, respectively. Debenture issue costs The costs associated with the issue of capital instruments are
50
Scottish Rugby Annual Report 2014/15
charged to the Income and Expenditure Account on an annual basis over the minimum period remaining until the redemption of the associated instrument. Pension costs Contributions are made by the Union to money purchase scheme pension arrangements for certain employees. Amounts due to assurance companies are charged against the income and expenditure account in the year in which they become payable. The Union provides no other post retirement benefits to its employees.
Consolidated Income & Expenditure Account
Year Ended 31 May
Period ended 31 May
Notes
2015 £000
2014 £000
Income Ticket income
10,143
8,225
Broadcasting revenues
10,822
12,065
Other operating income
23,278
23,440
Leasing and hire purchase agreements which transfer substantially all the benefits and risks of ownership of an asset are treated as if the asset had been purchased outright. The assets are included in fixed assets and the capital element of the leasing commitment is shown as an obligation under finance leases. The lease rentals are treated as consisting of capital and interest elements, with the capital element applied to reduce the outstanding obligation and the interest element charged against the surplus or deficit for the period on a straight line basis. Assets held under finance leases are depreciated over the shorter of the lease term and the useful lives of equivalent owned assets.
44,243
43,730
Grants Revenue grants are credited to the income and expenditure account in the same period as the related expenses.
Finance and operating leases Costs in respect of operating leases are charged on a straight line basis over the lease term.
Taxation The Union has mutual trading status for taxation purposes as regards its trading activities with its own members and pays tax only on the profit derived from trading with non members. Deferred taxation is recognised on all timing differences where the transaction or events that give rise to an obligation to pay more, or less, tax in the future have occurred by the Balance Sheet date. Deferred tax assets are recognised when it is probable that they will be recovered. The tax rates in force at the Balance Sheet date are used to calculate the need for any deferred tax provision or asset. Financial Instruments The Union uses interest rate swaps to reduce its exposure to interest rate movements. Receipts and payments on these interest rate swaps are recognised on an accruals basis over the life of the swap. The Union also uses forward sale currency contracts to reduce its exposure to exchange rate movements. The income relating to these sales is accounted for at the rate of exchange at which the related contract has been taken out. The Union does not hold or issue derivative financial instruments for speculative purposes.
Expenditure International and Professional Rugby
22,761
23,614
Domestic and Performance Rugby
6,201
4,969
Commercial and Operational
10,876
10,077
Club Support and Development
2,772
2,251
Depreciation
1,053
1,257
43,663
42,168
Operating Surplus
580
1,562
Net Interest
3
(556 )
Surplus on ordinary activities before taxation
1
24
860
Taxation on surplus on ordinary activities
4
-
-
15
24
860
Surplus for the financial period
(702 )
The Union has no recognised gains or losses other than those included in the surplus above and therefore no separate statement of total recognised gains and losses has been presented. All activities are continuing. There is no difference between the surplus on ordinary activities before taxation and the surplus for the periods stated above and their historical cost equivalents. A commentary on the main items included in each of the above categories is appended to the Financial Statements after the Five Year Financial Summary.
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Consolidated balance sheet
Notes
2015 £000
2014 £000
Fixed Assets
Consolidated cash flow statement
Year Ended
Period ended
31 May
31 May
Tangible Fixed Assets
5
39,616
39,629
2015
2014
Investments
6
2
2
Notes
£000
£000
39,618
39,631
Net cashflow from operating activities
16
1,999
4,391
Interest paid on bank overdrafts and loans
(341 )
(409 )
(1,877 )
(598 )
Current Assets
Return on investments and servicing of finance
7
5,456
4,896
Cash at bank
-
404
Cash in hand
8
5
5,464
5,305
Debtors
Capital Expenditure and Financial Investment
Payments to acquire Tangible Fixed Assets Financing Creditors: amounts falling due within one year
8
(20,132 )
(11,654 )
Repayment of bank loan
(2,250 )
(1,250 )
Finance lease
(4 )
(5 )
(Decrease) / Increase in cash
(2,473 )
2,129
(14,668 )
(6,349 )
9
(46 )
(44 )
Total Assets less Current Liabilities and Provisions
24,904
33,238
Year ended
Period ended
8
148
8,451
31 May
31 May
Deferred income
10
2,070
2,207
Reconciliation of net cash flow to movement in net debt
2015
2014
Ten Year Debentures
11
1
1
£000
£000
Murrayfield Debentures
12
31,542
31,460
Irredeemable Debentures
13
97
97
(Decrease) / Increase in cash in period
(2,473 )
2,129
Amortisation of Murrayfield Debentures
(82 )
Repayment of bank loan
2,250
Net Current Liabilities Provisions for liabilities
Creditors: amounts falling due after more than one year
General Reserve
15
33,858 (8,954 ) 24,904
42,216 (8,978 ) 33,238
Finance lease
(89 ) 1,250
4 5
Change in net debt
(301 )
Opening net debt
(39,411 )
(42,706 )
Closing net debt
(39,712 )
(39,411 )
17
3,295
The Financial Statements on pages 50 to 60 were approved by the Scottish Rugby Board and signed on its behalf on 23 July 2015 by:
Sir Moir Lockhead OBE, Chairman
Mark Dodson, Chief Executive
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Scottish Rugby Annual Report 2014/15
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53
Notes to the Financial Statements
Notes to the Financial Statements
1. Surplus on ordinary activities before taxation Year Ended Period ended 31 May 2015 31 May 2014 The surplus on ordinary activities before taxation is stated after crediting: £000 £000 Amortisation of deferred income 137 148 Barter transaction sponsorship income 851 710
2.
And after charging: Auditors remuneration Auditors fees for non-audit services Tax compliance Tax advisory Other Depreciation charge for the period Owned fixed assets Operating lease rentals Plant & machinery Other Barter transaction sponsorship costs Administrative and management expenses
Wages and salaries
21,052
19,868
Social security costs
2,295
2,131
Other pension costs
573
488
23,920
22,487
25
25
8 7 6 9 2 2 1,053
1,257
44 305 851 2,682
10 265 710 2,646
Staff Costs (cont)
Year Ended Period ended 31 May 2015 31 May 2014 Total Total £000 £000 Employment costs:
At the period end the pension accrual was £159k (2014 - £105k).
3. Net Interest Year Ended Period ended 31 May 2015 31 May 2014 £000 £000
Interest payable on bank borrowings
(474 )
(613 )
Amortisation of Debenture issue costs
(82 )
(89 )
(556 )
(702 )
2.
Staff Costs The average number of persons employed during the period who are involved in and support the Scottish game was:
Year Ended Period ended 31 May 2015 31 May 2014 No. No. No. No. Rugby Professional Players 101 100 Professional Teams - Coaching & Operations 24 22 National Team - Coaching & Operations 9 9 Elite Development Players & Coaches 33 26 Domestic & Performance 69 61 Strength & Conditioning 11 12 Medical & Physiotherapy 10 11 257 241 Stadium Operations 37 34 Commercial, marketing & other 51 42 corporate functions TOTAL 345 317
The rates of interest on the Union’s term loan borrowings are included in Note 8.
4. Taxation on surplus on ordinary activities Year Ended Period ended 31 May 2015 31 May 2014 £000 £000 Current Tax:
On profits arising from non-mutual trading
- -
Deferred:
Origination and reversal of timing differences
(27 )
533
Movement in deferred tax unprovided
27
(533 )
-
-
Factors affecting the current tax charge for the year:
Surplus on ordinary activities before tax
24
860
Corporation Tax at 20% (2014 - 20%)
5
172
Effects of:
Within the above figures:
Net expenses not deductible for tax purposes
Domestic & Performance includes employees within the BT Academies, Domestic Rugby Support, Services, Participation and Development, Coach Development, Outreach & Equality, Schools & Youth, Domestic and Elite Refereeing, and Age Grade & Other Coaches.
Crystallisation of tax losses
(112 )
(316 )
Non-taxable mutual profits
(150 )
(134 )
Depreciation in excess of capital allowances
88
Movement in other timing differences
28 6
Stadium Operations includes staff involved in Event Management, Ticketing and Stadium & Pitch Maintenance. Commercial, marketing & other corporate functions includes Commercial & Marketing, HR & Communications, Finance & IT, Governance and Business Services.
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Scottish Rugby Annual Report 2014/15
141
-
167
105 -
The Union has gross taxable profits arising in the period of £nil (2014 - £nil).
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Notes to the Financial Statements 5. Fixed Assets Heritable Property £000 Cost As at 1 June 2014 46,128
Notes to the Financial Statements 7. Fixtures & fittings £000
Other Equipment £000
Assets Under Construction £000
Total £000
14,171
3,888
916
65,103
Additions
513
162
365
-
1,040
Transfers
916
-
-
(916 )
-
As at 31 May 2015
47,557
14,333
4,253
-
66,143
Accumulated Depreciation
As at 1 June 2014
Charge for year
As at 31 May 2015
10,241
12,190
3,043
-
25,474
657
218
178
-
1,053
10,898
12,408
3,221
-
26,527
Net Book Value As at 31 May 2015 36,659 1,925 As at 31 May 2014
35,887
1,981
1,032 845
- 916
39,616 39,629
6. Investments The Union is the beneficial owner of 1,667 €1.27 ordinary shares in European Rugby Cup Limited (ERC), a company i ncorporated in the Irish Republic. The Union’s holding represents 16.67% of the company’s issued share capital. The Union holds one €1.25 ordinary share in British Lions Limited, a company incorporated in the Irish Republic. The Union’s investment represents a 25% holding in the issued share capital of the company. The Union is the beneficial owner of 100 €1.00 ordinary shares in Celtic Rugby Limited, a company incorporated in the Irish Republic. The Union’s holding represents 33% of the company’s issued share capital. Given the disposition of the other shareholdings in these companies, and the immateriality of their net surpluses and net assets after receipt of dividends by the Union, the Directors do not believe that these investments fall to be treated as associate companies. Fixed asset investments are stated at the lower of cost and valuation.
7. Debtors Amounts falling due within one year
2015 £000
2014 £000
Trade debtors
4,413
3,818
Prepayments
Other debtors
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Scottish Rugby Annual Report 2014/15
655 890 388 188 5,456
4,896
Debtors (cont) The Union has entered into a number of forward sale currency contracts to reduce its exposure to exchange rate movements affecting the income it receives in Euro. At 31 May 2015, the contracts held were for a total of €9m, with settlement dates between 25 January 2016 and 29 July 2016 at an average rate of £0.73:€1. The notional market value of t hese contracts at 31 May 2015 was £151k. At 31 May 2014, contracts for a total of €1.3m were held, with a settlement date of 30 June 2014 at an average rate of £0.86:€1. The notional market value of these at 31 May 2014 was £61k.
8. Creditors Amounts falling due within one year
2015 £000
2014 £000
Bank overdrafts
2,072 -
Bank Loans
6,000
Obligations under finance leases
5
5
Advance receipts
4,391
3,918
Trade creditors
2,163
2,251
Other tax and social security
1,234
1,111
Accruals
4,267
4,369
20,132
11,654
8,250
Amounts falling due after more than one year
Bank loans and overdrafts
-
Obligations under finance leases
3 7
Other creditors
145
194
148
8,451
Finance lease obligations to which the Union is committed are due:
In one year or less
5
5
Between one and two years
3
5
Between two and five years
- 2 8
12
Within Amounts falling due within one year, bank loans of £6m (2014 - amounts falling due after more than one year - £8.25m) were repayable in full on 30 June 2015. Security was granted to the Union’s bankers by way of a Bond and Floating charge over the assets of Scottish Rugby Union plc. The Union had entered into an interest rate swap with the Bank of Scotland, in relation to £6m of the loan (2014 - £8.25m). This fixed the interest rate on these borrowings at 4.295% (2014 - 4.295%). The Union has concluded a further re-financing deal with the Bank of Scotland and a new term loan of £6m has been agreed. £0.5m of this loan is repayable annually, with the balance being repayable in full on 30 June 2020. The Union has also entered into a further interest rate swap with the Bank of Scotland, initially in relation to £5.5m of the new term loan. This has fixed the interest rate on these borrowings, from July 2015, at an average rate of 3.491%. The interest rate swap arrangement has a notional market value, being the net present value of future cash flows due under the swap compared to current interest rates. The market value of the interest rate swap on 31 May 2015 was (£9k). The market value of the interest rate swaps in place on 31 May 2014 relating to the £8.25m term loan was (£43k).
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Notes to the Financial Statements
Notes to the Financial Statements
9. Provisions for liabilities
12. Murrayfield Debentures Deferred Tax £000
Tenant Club Fund £000
Total £000
Opening
-
44
44
Transfer during period
-
2
2
Closing
-
46
46
Deferred taxation comprises:
2015
2014
Class of Debenture Value Each No. Authorised A £1,200 9,100 B
31 May 2015 No. Issued £000 9,092 10,910
31 May 2014 No. Issued 9,092
£000 10,910
£2,200
7,900
7,900
17,380
7,900
17,380
C
£3,500
1,000
1,000
3,500
1,000
3,500
Thistle
£9,900
500
188
1,861
188
1,861
Debentures issued
18,180
33,651
18,180
33,651
2,280
£000
£000
Accelerated capital allowances
1,644
1,704
Issue Costs: Opening
2,191
Other timing differences
390 418
Amortisation
(82 )
Trading losses carried forward
(3,399 )
(3,470 )
Closing
2,109
2,191
(1,365 )
(1,348 )
1,365
1,348
31,542
31,460
Deferred Tax asset not recognised
- -
Following due consideration of future anticipated taxable profits, the residual deferred tax assets on trading losses carried forward has not been recognised on the basis that it will take some time for them to be fully recovered. The deferred tax asset will be fully recoverable should there be appropriate future taxable profits.
10. Deferred income
31 May 31 May 2015 2014 £000 £000
Heritable Property £000
Debenture Premium £000
1,598
609
Amortisation
(31 )
(106 )
(137 )
Closing
1,567
503
2,070
Opening
2,207
2,355 (148 )
Net Issue Proceeds less amortisation
(89 )
The Murrayfield Debentures are unsecured, rank pari passu and are interest free. Repayment, at par, is at the discretion of the Union on or after 1 January 2043 in respect of the A and C Debentures and 1 January 2044 with regard to the B and Thistle Debentures. Murrayfield Debenture holders have the right to purchase a ticket for any event or match at the stadium for which the Union retains direct control over the allocation of all tickets. In respect of Six Nations matches the ticket is for a specific seat. Thistle and C Debenture holders also have the right to purchase certain matchday hospitality packages.
13. Irredeemable Debentures The 972 (2014 - 972) Debentures of £100 each (the 1925 Debentures) entitle the holder to purchase two tickets at BT Murrayfield for each match directly controlled by the Union. The debentures are interest free.
2,207 14. Leases
11. Ten Year Debentures Class of Max. No. Debenture Issue Debenture Value Each Authorised
2014 No. issued
2009 Debentures
J
£1
500
90
90
K
£1
1,000
429
429
58
2015 No. issued
L
£1
200
78 78
2012 Debentures
N
£1
1,000
14 14
O
£1
1,000
180 180
Debentures issued
791 791
The 2009 Debentures are unsecured, interest free and repayable at par on 31 May 2019. The 2012 Debentures are unsecured, interest free and repayable at par on 31 May 2022. Holders of the 2009 and 2012 Debentures have the right to purchase a ticket for any event or match at the stadium for which the Union retains direct control over the allocation of all tickets. In respect of Six Nations matches, the ticket is for a specific seat.
Scottish Rugby Annual Report 2014/15
Non-cancellable commitments under leases to pay rentals in the year following the year of these Financial Statements are noted below, analysed to the year in which each lease expires. 2015 2014 £000 £000 305 305
Land & Buildings - Expiring within 2 to 5 years
Plant & Machinery - Expiring within 2 to 5 years
15 10
320 315
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15. General Reserve
2015 £000
2014 £000 (9,838 )
Opening
(8,978)
Surplus for the year
24
Closing
(8,954)
860 (8,978 )
16. Reconciliation of operating surplus to net cashflow from operating activities Year ended Period ended 31 May 2015 31 May 2014 £000 £000
Operating surplus
580
1,562 1,257
Depreciation charge
1,053
Amortisation of deferred income
(137 )
Tenant club residual fund
Movement in debtors
Movement in creditors
1,061
1,355
1,999
4,391
17. Analysis of changes in net debt 31 May 2014 Cash Flows £000 £000
2
(148 ) 2
(560 ) 363
Other Changes £000
31 May 2015 £000 8
Five year Summary 2015 £000
2014 £000
2013 £000
2012 £000
2011 £000
Income
44,243
43,730
39,275
38,226
35,086
Expenditure: International and Professional Rugby
22,761
23,614
20,884
19,116
16,691
6,201
4,969
4,701
4,494
4,221
Domestic and Performance Rugby
Commercial and Operational
10,876
10,077
8,874
9,207
9,121
Club Support and Development
2,772
2,251
1,932
1,900
1,805
Depreciation
1,053
1,257
1,100
1,131
1,037
43,663
42,168
37,491
35,848
32,875
580
1,562
1,784
2,378
2,211
-
-
-
121
-
580
1,562
1,784
2,499
2,211
(556 )
(702 )
(926 )
(919 )
858
1,580
1,288
-
-
(10 )
-
24 860
858
1,570
1,288
534
636
1,008
Operating Surplus Surplus on sale of Fixed Asset
Cash in hand
5
3
-
Bank
404
(2,476 )
-
(2,072 )
Surplus on ordinary activities before interest
Bank loans
(8,250 )
2,250
-
(6,000 )
Finance Leases due within one year
(5 )
4
(4 )
(5 )
Net interest
Finance Leases due after one year
(7 )
-
4
(3 )
Irredeemable Debentures
(97 )
-
-
(97 )
Murrayfield Debentures
(31,460 )
-
(82 )
(31,542 )
Ten Year Debentures
(1 )
-
-
(1 )
(39,411 )
(219 )
(82 )
(39,712 )
18. Related Party Transactions Two of the directors of Scottish Rugby Union plc, Mike Monro and Ian Rankin, were also trustees of the Murrayfield Centenary Fund during the year. Scottish Rugby Union plc does not charge the charity for any administrative or other support that it provides and made no donation to it in the current year or previous period.
Surplus before taxation Taxation Surplus for year / period Capital Expenditure
24
860
-
1,040
(923 )
Note (1) 1,558
Note (1) – 2014 represents a 13 month period, ended 31 May 2014. Other columns represent one year, ended 31 May for 2015, and 30 April for other years.
During the course of the year, £16k (2014: £9k) of ad hoc grounds and facility services were purchased from WH&R Barr, a firm whose managing partner, Ian Barr, is a Director of Scottish Rugby Union plc. At the year end £nil (2014: £2k) was outstanding. Fergus Neil, a director of Scottish Rugby Union plc acts as a referee performance reviewer for domestic, EPCR and Pro12 fixtures, on behalf of Scottish Rugby. The fee payable to Mr Neil for this service in the year was £1,125 (2014: £1,500). 19. SRU Group The Scottish Rugby Union carries out all of its operations through its wholly owned subsidiary, Scottish Rugby Union plc, the registered office of which is BT Murrayfield Stadium, Edinburgh, EH12 5PJ. For accounting purposes the group is also deemed to include the Thistle Rugby Trust. The group has taken advantage of the exemption conferred by FRS8 from the need to disclose transactions between group entities that have been eliminated on consolidation in these group Financial Statements.
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Commentary on the Financial Statements This section provides a general commentary on the income and expenditure categories for the year ended 31 May 2015. Turnover Scottish Rugby’s turnover comes from a number of areas. National team match ticket sales, including the RBS 6 Nations and the viagogo Autumn Tests, pro-club match ticket sales and tickets for the Emirates Airline Glasgow 7s, together with related broadcasting revenue provide a significant element of this. Match day income also includes revenue from pitchside advertising boards, match programmes and revenue from hospitality activities. The sale of merchandise throughout the period is a further important source of income. Scottish Rugby is grateful for funding from its many sponsors including BT, the Royal Bank of Scotland and Macron, and for significant grant funding from World Rugby, sportscotland and the Cashback for Communities programme. Turnover also includes income from the European Rugby Cup and the Guinness Pro12 League, and from other events held in BT Murrayfield Stadium including dinners, business conferences, concerts, football matches and Christmas party nights. International and Professional Rugby The expenditure relating to the players, management, medical and strength & conditioning teams involved in International and Professional rugby is within this category. This includes travel, food and accommodation at venues, salaries, kit, laundry costs, travel insurance, training facilities, honours caps and team coach hire for all of the Scotland teams playing at international level. It also includes all Pro-club costs, being players’, coaches’ and support staff salaries together with kit, travel and other coaching costs, and match day outgoings such as advertising, turnstile staff, ticket printing, venue preparation and entertainment.
The investment in The BT Sport Scottish Rugby Academy in 2014/15 is included in this category. Costs include coaching, facilities, programmes and players, kit, equipment and match costs. Specialist coaching costs are included here, as are analysis and other rugby operational support costs. This area also includes investment in the Exiles programmes. Referee development, from grassroots to international level, includes the costs of referee coaching, travel to games, kit, and staffing and office expenditure for those employed in this area. Referee costs also include salary, travelling expenses and associated costs for professional refereeing. In the area of coaching, Scottish Rugby staff deliver United Kingdom Coaching Certificate (UKCC) courses throughout Scotland to ensure that coaches are properly qualified to coach at all levels and the delivery of this programme is partfunded by sportscotland. Also included are the costs of the Coach Development Officers, and training and facility costs, as well as tutor and registration fees. Scottish Rugby assists in the delivery of the Positive Coaching Scotland programme and the costs associated with this are included here, as are the programme and administration costs of the Are You Ready to Play Rugby safety initiative. Finally, the provision of medical services from physiotherapists and doctors, for cover at various events and matches are included here, as are related strength and conditioning costs. Scottish Rugby is grateful for the support of sportscotland and World Rugby grants which assist in the delivery of a number of the above programmes. Commercial & Operational
Domestic and Performance Rugby
Commercial and Operational costs cover various areas of activity in Scottish Rugby. The running costs of the national stadium are included and these range from pitch repair and preparation to roof and other stadium maintenance, from security to insurance, and from rates to electricity, gas and water, all of which continue to ensure that BT Murrayfield remains a suitable, safe, and well maintained venue. Also included are match day and non-match day operational and staff costs, as are other event management and entertainment costs.
Grassroots investment, which is key in helping to develop the players and coaches of the future, as well as maintaining and growing the game, is included in this category. The domestic
Marketing and commercial expenditure is included in this area, where the costs of partnering with, developing and maintaining Scottish Rugby’s family of sponsors are recorded. The activation
Expenditure in the provision of medical services, including physiotherapists, match doctors for the players, crowd doctors, and the medical supplies needed for strapping and treating injuries is included in this category as is the investment in the strength and conditioning personnel who work with the National and Professional teams together with the associated programme costs.
62
rugby team, which is supported by sportscotland, together with associated programme costs, including travel, training and event costs are also included. Similarly, expenditure for the delivery of the programme related to funding from the Cashback for Communities grant is included here.
Scottish Rugby Annual Report 2014/15
costs of marketing campaigns, promotional materials, media events and other operational activities are also included here. Similarly included are the costs of other support staff and programmes in the areas of ticketing, HR, procurement, IT, finance, governance and business services. Finally, the costs of the communications and public affairs team and related activity across the wide spectra of print, broadcast, web and other social media are part of this category. Club Support and Development Scottish Rugby recognises that investment in the sport at grassroots level is a key element in maintaining and growing the game. Clubs are supported through the payment of Participation Monies, Player Accident Insurance, contributions to cup and league travel costs, the Club Sustainability Fund and the payment of all referees’ travel costs across the country. Ticket commissions which clubs receive for sales of international and sevens tickets are included here as are player reward scheme payments, where clubs’ contributions to the development of players who have gone on to win academy or professional contracts are acknowledged. The joint funding of Club Development Officers in partnerships with both clubs and local authorities across the country is also part of club support and development expenditure. Depreciation Depreciation is the annual charge in respect of Scottish Rugby’s fixed assets, primarily the redevelopment costs of BT Murrayfield Stadium.
Registered Office
Auditors
BT Murrayfield Stadium Edinburgh, EH12 5PJ
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Level 4, Atria One, 144 Morrison Street, Edinburgh, EH3 8EX
Bankers Bank of Scotland Head Office The Mound, Edinburgh, EH1 1YZ
Solicitors Pinsent Masons Princes Exchange 1 Earl Grey Street, Edinburgh, EH3 9AQ
Leadership . Engagement . Achievement . Enjoyment . Respect
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Thank you to Scottish Rugby’s
Partners Principal Partners
Official Partners
Glasgow 7s Partners
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Scottish Rugby Annual Report 2014/15
Inspiring Scotland Through Rugby Leadership . Engagement . Achievement . Enjoyment . Respect
