Scottish Rugby have posted another hefty loss of £11.3million in their latest annual accounts.
It marks the second year in succession that the business has suffered significant losses, compounding the £10.5m deficit posted 12 months ago.
Due to a change in the accounting period, this year’s figures – for the year ending June 30, 2024 – have been taken over a 13-month period, with the SRU claiming that the 12-month figures indicate a loss of £8m.
The accounts take in various issues around redundancies and the restructuring of the business, with the SRU announcing a new financial reset programme earlier this year.
Former chief executive Mark Dodson pocketed £887,000 despite only working for around eight months of the year, essentially being put on gardening leave prior to his departure in the summer.
The money paid to Dodson was up on the £676,000 he received the previous year and was reflective of his salary and severance package.
Murrayfield chiefs have reported a hefty loss of £11.3m in latest annual accounts
Former CEO Mark Dodson received £887,000 despite working for eight months of year
Taylor Swift’s Murrayfield concerts played a significant role in boosting revenues
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.
All in all, revenues were up by around £6m on the previous best figure, increasing to a new record of £73.9m in the latest accounts.
Professional rugby, hospitality and commercial revenue streams played a significant role in the growth, most notably three blockbuster Taylor Swift gigs at Murrayfield in June.
Nonetheless, the overall financial outlook for Scottish Rugby remains a concern. Cash reserves fell from £20.5m to £16.7m.
Ticketing revenue of £16.4m was also down on the previous year due to no Autumn Tests taking place last year, as well as only two home matches in this year’s Six Nations championship.
Scottish Rugby expect to post another loss for the current financial year, forecast to be around £3.8m, before returning to a break-even position by the end of the 2025-26 financial year.
If all goes to plan, they are confident they will be able to turn a profit again by 2026-27.
SRU chair, Professor Lorne Crerar, insists there is ’cause for optimism’ despite figures
Scotland only had two home matches during Six Nations, including the visit of France
The financial restructure, which was announced in July, stated that up to 35 jobs were at risk of redundancy, with that process now nearing its conclusion.
There was also to be a pause on recruitment across the business, with the exception of a new chief executive and performance director.
It has since been announced that Alex Williamson has been appointed as the new CEO, with his duties commencing in January.
David Nucifora has also been appointed in an advisory role. Essentially the performance director in all but name, he will help shape strategies around player development and recruitment.
Wednesday’s annual report confirmed that measures are now under way to reduce costs further in the 2024-25 financial year ‘to provide a pathway to profitability in financial year 2026-27’.
Although further cost-cutting measures are inevitable, Mail Sport understands that no discussions have yet taken place with regards to any further redundancies.
Despite the bleak figures, Scottish Rugby Union chair, Professor Lorne Crerar, said: ‘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.
‘The SRL [Scottish Rugby Limited] Board is making steady progress through its financial reset programme, ensuring the restoration of Scottish Rugby to a sustainable business model.
‘Encouragingly, the SRU Board approved the budget for financial year 2024-25 in June, and SRL has made headway in meeting its revenue and cost targets.
‘All those involved in the journey of Scottish Rugby, including our stakeholders, the Boards of SRU, SRL and CRB, together with all our Scottish Rugby colleagues, have contributed to meeting the challenges of this financial year.
‘I am in no doubt that all acting in concert, we will ensure that we successfully meet the challenges of the future.’
Scottish Rugby Limited Chair, John McGuigan, said: ‘On arriving as the chair of Scottish Rugby Limited (SRL) in June 2023, it soon became apparent that alongside a number of known challenges such as our ageing stadium, there were some deeper and more immediate issues to tackle, particularly around our financial sustainability.
‘Since those issues were identified, we have been working tirelessly to ensure we return Scottish Rugby to a sound financial footing. Doing so will allow us to focus on other strategic matters crucial to the development of the game at club, professional and international level.
‘We have confidence that the actions we are taking are already starting to reduce the underlying cost base.
‘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.’