Scottish Rugby financial results worse than forecast as £11.3m loss overshadows return to profit prediction

35 roles targeted in redundancy programme

More gloomy financial news for Scottish Rugby has arrived in the governing body’s annual report which shows losses for the last financial year are worse than anticipated.

Overall, a loss of £11.3 million was reported for 2023-24, higher than predicted in July when a “financial reset programme” was announced which put 35 roles at risk of redundancy.

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The summer statement forecast a loss of around £10.6m but the actual figures released on Wednesday are worse by £700,000. Coming on top of the previous year’s loss of £10.1m, it is clear there is still much work to be done amid what are described as “further significant losses”.

Scottish Gas have secured the naming rights to Murrayfield.Scottish Gas have secured the naming rights to Murrayfield.
Scottish Gas have secured the naming rights to Murrayfield. | SNS Group

Record revenues of £73.9m were generated for 2023-24, an increase of £6m, helped by three Taylor Swift concerts at Murrayfield. Cash reserves, including short term deposits, were reduced by £3.7m, down to £16.8m from £20.5m.

The report reveals that Mark Dodson, the former chief executive officer, was the highest paid director with a remuneration of £887,000, up from £676,000 the previous year. This included a contractual payment in lieu of notice. Dodson announced in January his decision to step down from the role in the summer of 2024. His successor, Alex Williamson, will not take over until next year.

Hilary Spence, the former chief financial officer, who left the business in March “to focus on health issues”, received severance payment of £262,000. In the absence of a CEO, John McGuigan, the chair of Scottish Rugby Limited, has begun work trying to tackle the cost profile of the business. A significantly reduced loss, in the region of £3.8m, is predicted for the 2024-25 financial year after which a breakeven position for 2025-26 and a return to profit in 2026-27 are forecast.

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“We have confidence that the actions we are taking are already starting to reduce the underlying cost base,” said McGuigan. “This is in parallel to work being undertaken to look at increasing our future revenue growth and bring to life new commercial opportunities. We are determined to ensure that trend continues until we reach a sustainable, long-term position; a target we are committed to achieving in the financial year 2026-27.”

The latest figures are complicated slightly by the fact that Scottish Rugby has moved its accounting year end from 31 May to 30 June during the accounting period “to better align with other Home Unions”. It means the results presented in the annual accounts cover a 13-month period from 1 June 2023 to 30 June 2024. “The inclusion of the 13th month led to an additional loss of £3.3m for that month,” said the governing body by way of an attempted explanation.

Because of this, the report says that like-for-like losses over the 12 months to 31 May 2024 are £8m which compares more favourably to the £10.1m losses of the previous year but is still £1.3m higher than was forecast in July.

“We have confidence that the actions we are taking are already starting to reduce the underlying cost base,” said McGuigan. “We are determined to ensure that trend continues until we reach a sustainable, long-term position; a target we are committed to achieving in the financial year 26/27.

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“Alongside implementing new cost controls, we also need to focus on driving higher revenues. Scottish Rugby currently trails its peers in areas such as investment in high-performance programmes. Without constructive intervention, participation will decline and we will struggle to develop homegrown talent and continue to attract new fans to the sport.”

More home Scotland matches across the next financial year will help, as will the programme of summer 2025 concerts at Murrayfield which currently includes three nights by Oasis and one each from Billy Joel and Robbie Williams.

Taylor Swift performing on stage during her Eras Tour at Murrayfield Stadium.Taylor Swift performing on stage during her Eras Tour at Murrayfield Stadium.
Taylor Swift performing on stage during her Eras Tour at Murrayfield Stadium. | PA

“Expenditure in professional rugby, high performance rugby, Club and School Support Funds, administration and governance rose in 2023/24 compared with the previous year,” said Scottish Rugby in a statement. “Other factors contributing to spend included an additional month of employee and operational costs, Scotland’s preparation for, and attendance at, the 2023 Rugby World Cup, the move to the new player pathway and winding down of Super Series and the continuing investment in the women’s game and pro team budgets. Other business areas’ expenditure were largely consistent with the previous financial year.”

The redundancy programme is ongoing and is understood to be on course to reach its target of removing 35 roles. This is being done through a combination of redundancies, not filling vacancies and not renewing fixed-term contracts. Lorne Crerar, the chair of the Scottish Rugby Union, called the redundancy programme “an extremely stressful and painful time for all in the organisation”.

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Ticketing revenue (£16.4m) was down on the previous year. There was no autumn Test series at Murrayfield in 2023 because of the Rugby World Cup and only two of Scotland’s 2024 Six Nations fixtures were at home.

Both pro teams, Edinburgh and Glasgow Warriors, continue to make a loss but Glasgow enjoyed notable success by winning the United Rugby Championship. Edinburgh, by contrast, failed to reach the URC play-offs for the second season in a row.

Scottish Rugby Ltd chair John McGuigan has been tackling the 'cost profile'.Scottish Rugby Ltd chair John McGuigan has been tackling the 'cost profile'.
Scottish Rugby Ltd chair John McGuigan has been tackling the 'cost profile'. | SNS Group / SRU

Scottish Rugby’s statement on the annual report added: “There was continued investment in the community game through the Club and School Support Funds of £4.9m which provides direct support through cash funding that are available to clubs in the way of cash to support the individual clubs’ specific needs. Funds utilised during the period include the Club Sustainability Fund and the Growth and Participation Fund.

“The year also saw continued investment in the women and girls’ game following Scotland Women’s success in the inaugural WXV2 competition. New regional training centres were announced last summer for the female programme, alongside participation in the first Celtic Challenge competition which saw Edinburgh and Glasgow Warriors teams compete against Irish and Welsh teams.

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“A new male performance pathway was announced in February 2024 which included expanding the pro-team academies following the decision to end the Super Series competition.

“The financial year also welcomed a significant new principal partner in Scottish Gas, which secured the naming rights for Murrayfield Stadium as part of a wide-ranging long-term agreement.”

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