Scottish Rugby Union Reveals £11.3 Million Loss in Latest Annual Accounts
The Scottish Rugby Union (SRU) has announced a significant loss of £11.3 million in their latest annual accounts, marking the second consecutive year of substantial financial difficulties for the organization.
The accounts, which cover a 13-month period ending on June 30, 2024, indicate that the 12-month figures would have shown a loss of £8 million. The SRU has attributed the losses to various issues, including redundancies and the restructuring of the business, leading to the implementation of a new financial reset program earlier this year.
“The new budgetary and supporting plan has now been put in place after much hard work, and despite further significant losses recorded for 2023-24, there is cause for optimism going forward.” – Professor Lorne Crerar, SRU chair
Former chief executive Mark Dodson received a substantial £887,000 payment, despite only working for around eight months of the year, as he was placed on gardening leave prior to his departure in the summer. This figure was up from the £676,000 he received the previous year, reflecting his salary and severance package.
Hilary Spence, the former chief financial officer who left Scottish Rugby in March to “focus on health issues,” received a severance payment of £262,000.
Despite the financial challenges, the organization reported an increase in revenues, reaching a new record of £73.9 million, primarily driven by growth in professional rugby, hospitality, and commercial revenue streams. The three blockbuster Taylor Swift concerts at Murrayfield in June also played a significant role in boosting revenues.
However, the overall financial outlook for Scottish Rugby remains a concern, with cash reserves falling from £20.5 million to £16.7 million. Ticketing revenue of £16.4 million was also down on the previous year due to the lack of Autumn Tests and only two home matches in the Six Nations championship.
Scottish Rugby expects to post another loss for the current financial year, forecast to be around £3.8 million, before aiming to return to a break-even position by the end of the 2025-26 financial year. If all goes according to plan, they are confident they will be able to turn a profit again by 2026-27.
The financial restructuring has led to up to 35 jobs being at risk of redundancy, a process that is now nearing its conclusion. Additionally, a pause on recruitment across the business has been implemented, with the exception of a new chief executive and performance director. Alex Williamson has been appointed as the new CEO, with his duties commencing in January, while David Nucifora has been appointed in an advisory role to help shape strategies around player development and recruitment.
Scottish Rugby Limited chair, John McGuigan, acknowledged the challenges faced by the organization but expressed confidence in their ability to return Scottish Rugby to a sound financial footing, allowing them to focus on other strategic matters crucial to the development of the game at all levels.
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