After a summer spent on the defensive as its treatment of staff has led to an internal investigation into the way its executives go about their business, Scottish Rugby attempted to launch a counter-offence yesterday when it issued its annual report.
The organisation is still under-going what it has claimed to be a rigorous investigation overseen by Lesley Thomson QC, the former solicitor general, in the wake of former director of domestic rugby Keith Russell’s victory in his unfair dismissal case. That hearing resulted in substantial compensation and damages in Russell’s favour, as well heavy criticism of executive practices at Scottish Rugby, stating that his dismissal was “both procedurally and substantively unfair”.
That, in turn, has led to on-going questions being raised about Scottish Rugby’s repeated use of non-disclosure agreements when previous employees have departed.
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Senior figures within the organisation are clearly under considerable pressure as a consequence ahead of next month’s annual general meeting, however the release of positive-looking financial figures, in particular a record turnover of £57.2m that has “generated a surplus of £1.8m, among the highest ever recorded for the organisation,” offered them some opportunity to re-align the agenda in their favour.
The increase in turnover is described as having been achieved through strong broadcast revenues of £15.2m and a rise in other operating income to £18.9m in relation to increased commercialisation of the Guinness PRO14, higher match-day hospitality and game-day related sales at BT Murrayfield, non-matchday events and income from British & Irish Lions.
Speaking of those figures, Scottish Rugby chairman Colin Grassie observed that “these results provide financial stability,” while for all that performances continue to be mixed at elite level, chief executive Mark Dodson, who is clearly at the centre of the current controversy regarding operating procedures while also driving the contentious ‘Super 6’ policy of introducing a new tier of semi-professional rugby, claimed that on-field success had been key to improving the accounts.
“Rugby in Scotland is enjoying a resurgence at international and professional level and the support for these teams has never been stronger,” he said.
“This has contributed to the strong financial position we can report this year, which will help us to continue to move the game forward at all levels.
“We are committing record levels of investment into the grassroots game in Scotland in order to create a sustainable environment and help improve the standards of rugby being played across the board.
“We continue to build our brand on the global stage and find ourselves in a strong position as we head into Rugby World Cup 2019.”
While Scottish Rugby has frequently been portrayed as placing too much emphasis on the elite side of the sport, chief operating officer Dominic McKay sought to highlight links between the two, with the report noting that 31 clubs have been assisted to the tune of £15.6m from its Club Sustainability Fund over the past four years and that 167 clubs in all have received financial support for projects, initiatives and improvements.
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“Commercial success is vital in order to develop rugby in Scotland from the grassroots game to the international stage,” he said.
“This season our turnover reached a record £57.2m, building on the growth from previous seasons. This increase in turnover has been enhanced by a growing fan base for rugby in Scotland and last season we welcomed more than 500,000 fans to our international and professional games. In terms of Scotland crowds, it was the best season ever with 335,720 attending, beating last year’s record despite hosting fewer matches.
“BT Murrayfield continues to be a hugely popular venue for concerts and events and I’m delighted our family of sponsors is growing and existing partners have chosen to extend their time with us further.”
The bottom line is that these executives are able to boast of bottom line figures that are healthier in Scotland than at any time in the history of the professional game, but whether or not the findings of the enquiry are known and have been made public by the time Scottish Rugby’s AGM takes place on August 4, the broad question facing its delegates will relate to whether they view the reputational damage done to the sport by the Keith Russell case and the wider issues it has highlighted, is a price worth paying.
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