SCOTTISH RUGBY UNION ANNUAL REPORT 2007/08

Transcription

1 SCOTTISH RUGBY UNION ANNUAL REPORT 2007/08

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3 GROWING LOCALLY, PERFORMING SUCCESSFULLY, COMPETING GLOBALLY C ONTENTS 04 President s Message 06 Chairman s Review 08 Chief Executive s Review 14 Finance Director s Review 16 High Performance Rugby 20 Performance Development 26 Community Rugby 32 Results & League Tables 38 The Year in Photographs 40 Scottish Rugby Board Report 42 Auditors Report and Financial Statements 56 A Year of Scottish Governance 58 Sponsor Acknowledgements 59 Forthcoming Fixtures FRONT COVER: STEVEN LAWRIE AND CHRIS FUSARO CELEBRATE SCOTLAND 7 S WIN OVER FIJI AT THE EMIRATES AIRLINE EDINBURGH SEVENS. INSIDE FRONT COVER: YOUNG PARTICIPANT AT THE MARTIN CURRIE FESTIVAL OF RUGBY PHOTOGRAPHY: SWPIX; GETTY IMAGES; EWAN BAXTER PHOTOGRAPHY; MICHAEL BOOTH; ANDREA MARCANDALLI; ISOBEL IRVINE; ESME ALLEN/ EDINBURGH EVENING NEWS. ANNUAL REPORT 2007/08

4 P R E S I D E N T S M E S S A G E George Jack: THE COMMUNITY GAME IS AT THE VERY HEART OF SCOTTISH RUGBY AND IT IS PLEASING TO REPORT THAT THIS SEASON HAS SEEN INCREASES BOTH IN RESOURCES MADE AVAILABLE TO CLUBS AND ALSO IN PLAYING NUMBERS, IN ALL SECTIONS OF THE COMMUNITY GAME. 04

5 Committed as we are to supporting the grass roots of the game, there has been real progress made with the appointment of yet more Club Development Officers. We are well on the way to reaching our target, with more and more clubs putting structures in place and working hard to grow the game within regional based partnerships. Last year we announced our decision to fund player insurance for clubs and increase travel payments. It is heartening to report that we have additionally attracted several national companies keen to support our game specifically at the community level and clubs have benefited from this. Recently Scottish Rugby applied for, and was awarded, funding via the Cash Back for Communities initiative. This will be applied to help extend the community game to ensure that rugby plays its part in helping young Scots develop not only a healthy, positive lifestyle but also that the game itself finds its way into areas where rugby has previously never been played. Additionally, so far as resources for the community game are concerned, this season saw the re-introduction of alcohol provision at Murrayfield for international matches, with related profits devoted to the development of grass roots rugby. This season the structure of communications meetings with clubs followed a different pattern from the norm, due to pressures of the World Cup in September and October. Instead, and later than usual, a series of roadshows was held throughout the country to allow discussion of the SRU s Strategic Plan and for clubs to question the President, Chairman, Chief Executive and others. In addition to this, the President, accompanied on occasion by Council and Board members, met, on a timetabled basis, with all Premier Clubs; got together with National Clubs on Saturdays at matches; and attended Regional meetings in the North, Glasgow and Edinburgh. As a result of this activity a booklet was produced in March containing issues that had arisen, along with a proposed way of progressing each, and this was issued to all clubs. Back in September, the national XV progressed to the last eight of the Rugby World Cup, though was disappointed to get reasonably near a win against Argentina without actually achieving this. And later in the RBS 6 Nations, despite winning the Calcutta Cup, that disappointment raised its head again in the match with Italy and, to a certain extent, with Ireland. The two tests in Argentina, however, have given our young squad grounds for renewed optimism and now the three Bank of Scotland Corporate Autumn Tests in November 2008 will be absolutely vital, for RWC seedings are now dependent on these results. This season the amateur Club International was extended to two matches and I congratulate those players who had a great victory over Wales at Caerphilly and just missed out in Dublin after a thrilling finish to an exciting game of rugby - once again a testimony to the standards in our club game. Domestically, congratulations are due to Boroughmuir who won the Premier 1 Championship with several games still to play. Well done to Melrose in winning the Scottish Hydro Electric Cup and also to Garnock, Preston Lodge and Aberdeen University for securing the Shield, Bowl and Plate respectively. One year ago the professional team in Edinburgh was in some disarray and, given the uncertainty, several senior players left for fresh fields. Who would have thought that with a relatively inexperienced young side and, later, a brand new coach that they would have played the style of rugby that they did and finish in their best ever placing in the Magners League. Meanwhile, in the west, a hard-working Glasgow side almost matched them stride for stride in the run-in beating, amongst others, a full strength Munster side that two weeks later was to lift the Heineken Cup. A great display from both sides that gives us all hope for the future. This season the relationship between Council and Board has been extremely harmonious and businesslike. The members of both spent a great deal of time in clubs, as mentioned previously, thoroughly enjoying the reception given to them and gaining a great deal from the visits. They have given great support to me throughout the year and I would thank them most warmly for that. I hope that the others on the Council and Board will understand when I highlight Gordon McKie and Allan Munro for particular thanks. Their support of me has been way beyond the call of any duty and my heartfelt gratitude goes to both men. To have been elected to represent Scottish Rugby for the season past as its President has been unforgettable and a huge honour. Whether speaking on Scotland s behalf at international level or travelling the length and breadth of Scotland itself; whether spending time meeting genuine rugby folk or speaking at dinners or watching matches, the season has been one of great pleasure for me. One year ago, both in word and later by letter, I asked clubs for their support as we sought to take the game forward in Scotland. As we stand at the end of the season I can only humbly say Thank you, for whenever I have been in clubs throughout Scotland I have experienced the fellowship of rugby and have been given that support. I wish you all a refreshing summer and hope that you return invigorated and determined to do even better, with the further challenges that a new season brings. PRESIDENT S MESSAGE ANNUAL REPORT 2007/08 05

6 C H A I R M A N S R E V I E W Allan Munro: AFTER A SEASON HERALDED BY CHALLENGES ON THE FIELD, IN THE CLUBS AND CONCERNING THE BALANCE SHEET, 2007/08 HAS CULMINATED IN A WELCOME RETURN OF CONFIDENCE IN OUR GOVERNANCE OF THE GAME, GROWTH IN ALL AREAS OF THE SPORT AND HARMONY WITHIN THE CLUBS, TOPPED BY A SIGNIFICANT IMPROVEMENT IN OUR FINANCIAL AND COMMERCIAL STANDING. 06

7 A wealth of positive progress across the board has underlined Scottish Rugby s position as an attractive proposition for sponsorship, government investment and partnership working we are now the team that people want to join. One of my key aims this year has been to explore as many options as possible with a view to improving facilities and access to rugby for all young people. We are in consultation with key partners, including the Scottish Government, to help in areas such as improved pitches, increasing access to rugby through the curriculum and encouraging government agencies to work together to promote, grow and champion all sports throughout Scotland. We need to identify, buy into and build on all opportunities that may arise to increase facilities and participation. The very welcome news that the 2014 Commonwealth Games has been awarded to Glasgow is a huge opportunity for all involved in sport throughout Scotland. The excitement generated by such a prominent event being staged in our country must be captured and used to increase participation and ensure a positive impact on the long-term health of our young people. We must ensure that the facilities put in place for the event are used to their full potential for many years to come and that the unique legacy afforded by Glasgow 2014 is not lost to the nation. At a local level, further forays in this area include the recent announcement that the national side will play the final match of the 2008 Bank of Scotland Corporate Autumn Test series in Aberdeen. A key factor in the decision to stage the game in the north east was due to Aberdeen City Council s pledge to make improvements to rugby pitches in the city. Better facilities make it easier for people to play the game and increase opportunities to get involved in the sport. This season has seen further growth in the number of women and girls playing rugby, in partnership with the SWRU, and this is highlighted elsewhere in this report. Our partnership with the SWRU has been a positive one over the year and I would like to thank its Board for its efforts in championing the cause of women in sport. Scottish rugby is committed to the process of integration and equity within rugby and we look forward to working with the SWRU Board towards integration in In the area of finance, a major success story over the last year has been our ability to improve our financial situation, meet our budgetary targets and tackle the debt that had built up during the early days of the professional era. This progress has been achieved through an enormous amount of hard work in managing our debt while continuing to promote growth at grass roots level. By exuding confidence in our product, we have attracted interest in all areas of the game from filling Murrayfield on Six Nations days to keeping a positive profile of Scottish Rugby high on the Government agenda. Scottish Rugby has, once again, produced excellent results. This positive progress and stability at all levels has made us an attractive proposition to major names including Murray, our national team sponsors, Belhaven and Spire Healthcare. We have been delighted to renew our partnership with Canterbury of New Zealand in a new four-year kit sponsorship deal. This ground-breaking arrangement is the largest commercial deal Scottish Rugby has secured and extends the eight year relationship with Canterbury. Government confidence in Scottish Rugby is manifest in the recent Cash Back for Communities initiative that will benefit Scottish Rugby to the tune of over 1.4m over the next three years. Added to all this, our exceptional stadium facilities have proved highly desirable to the organisers of a wealth of major events we look forward to welcoming to Murrayfield over the next twelve months. Barcelona FC takes on Hibernian in July 2008 while ERC recently confirmed that Scottish Rugby had won the right to host the 14th Heineken Cup final, in May We anticipate further announcements of global sporting events being staged at our worldclass stadium in the near future. Investment in our National Academy continues to show real progress with many Academy members now participating at age group international and sevens levels, and eight of them moving up to full professional contracts with Edinburgh or Glasgow. Our national squad may not have had the season it wished for but this is a time for looking ahead as many Scotland players extend their contracts or return to our two professional sides, whose remarkable performances this year have proven that they too are the teams people want to be part of. As previously highlighted, I would like to thank members of staff, the Council and Board colleagues for their hard work and assistance throughout the year. We have made much progress towards our financial and developmental goals including the release of Scottish Rugby s Strategic Plan and the ensuing presentation to clubs which enabled us to gather much useful feedback. Non-executive Board member, Brian Kennedy, has intimated his intention to step down from the Board. Brian has contributed greatly over the last three years, I thank him on behalf of my Board for his excellent and valued support and I am delighted that he has offered to remain available to the Board as an advisor. I would also like to thank Graeme Millar who resigned from the Board at the end of May. There will be at least one change in the membership of the Board from the Council. George Clark losing his position as representative of Premier 1 will have to be replaced while George Jack faces a challenge as President and Archie Ferguson comes up for re-election. This year we have worked hard to create the building blocks for long-term development towards a successful future and we have achieved much success. There is no looking back we are moving on, growing in confidence and aiming higher as we look forward to the new season and the many challenges ahead with optimism. CHAIRMAN S REVIEW ANNUAL REPORT 2007/08 07

8 C H I E F E X E C U T I V E S R E V I E W STRENGTH IN DEPTH Gordon McKie: THE PAST YEAR HAS SEEN SCOTTISH RUGBY MAKE FURTHER PROGRESS IN TERMS OF RUGBY BUT WE HAVE ALSO GROWN STRONGER FINANCIALLY AND COMMERCIALLY THAN AT ANY OTHER TIME IN RECENT YEARS. On the playing fields, we have taken heart from the many success stories we ve been hearing over the past months from all areas of the country, in all aspects of the game and at all levels. At a financial level, we have reported a break-even position after interest and our average bank debt has remained constant an achievement in itself in a Rugby World Cup year and increased confidence in our abilities to manage our sport has led to considerable Government belief and public sector investment. A desire to be part of a flourishing team has seen Scottish Rugby at the receiving end of substantial sponsorship deals and other commercial programmes. Overall, with our new Strategic Plan now in place, alongside our first ever Performance Plan, we can confirm that the organisation has sound financial procedures and is on a firm footing to look ahead with confidence. The importance of Murrayfield as a top-class venue was underlined this year with sell-out fixtures at both RBS 6 Nations home games, that momentum continuing into next season s Six Nations where, at this early stage, we have already sold in excess of 20,000 tickets. As the bulk of our funding is generated through international matches, this has welcome cash-flow implications in addition to a very encouraging feelgood factor for the sport and stadium. Already we have other major promoters seriously considering our world-class facilities for their premium events, as evidenced by the recent announcement that Murrayfield will host the 14th Heineken Cup final in May Securing one of the world s flagship sporting events should ensure that the City and region also benefit from the significant financial windfall that results in staging such a final. A major step forward this year has been the reintroduction of alcohol provision at international matches. This has not only allowed us to compete with our fellow nations in providing our spectators with the match day experience they desire but also enabled us to plough back the profits from these activities into grass roots rugby development. We continue to work with the Government, Police, local authorities and other licensing stakeholders to ensure continued provision of alcohol runs smoothly for all concerned. Whilst we are satisfied with the overall outcome from Rugby World Cup 2007 in France, our international side had a disappointing Six Nations campaign. At the other end of the age spectrum, our U17 and U18 age grade sides have posted outstanding performances, boding well for the future of the game but work is required to improve the competitiveness of our U20 side. Our two pro sides really came of age this season with some remarkable results, both home and away, never letting up and producing a phenomenal end-of-season run. In addition, our Sevens squad reached the final of our own Plate event at the Emirates Airline Edinburgh Sevens, losing narrowly to South Africa. ALA SDA IR STR ROK OKO OSCH ADVAN NCES AGAI AIN NST ENGLAN LAND 08

9 Cash Back for Communities A prime example of public sector faith in Scottish Rugby was demonstrated by the recent Government announcement that it is to invest around 1.4million into grass roots rugby in Scotland over the next three years. The Scottish Government s Cash Back for Communities initiative means cash recovered by the authorities after criminals have been dealt with by the justice system is reinvested in both rural and urban communities throughout Scotland. Scottish Rugby applied for funding through the scheme, stressing its belief that sport in general and rugby in particular can benefit the lifestyles of young people, especially those in disadvantaged areas. We truly believe that our sport can play a major role in helping young Scots to become healthier, safer and stronger and make a positive contribution to their communities. The initiative aims to provide free rugby coaching and playing activities for a total of 32,000 youngsters aged in all 32 local authorities in Scotland by GAR NOC KR RFC VKIRK RKCA CALDY RFC FACTS ON FIGURES Over the last two years Scottish Rugby, working in partnership with rugby clubs and local authorities, has put a network of jointly funded development officers in place to work with volunteers to boost numbers playing rugby. Both online player registration and returns in respect of club accident insurance provide strong anecdotal evidence to support the view that the game is continuing to grow in clubs and schools in Scotland. In line with the Strategic Plan, we will undertake a detailed audit process, the result of which will be published in due course. One of the key elements of our Strategic Plan, launched at the end of last year, is to increase playing numbers to grow locally. A 35% increase in adult players, a 38% increase in young players, bringing the total number of players to 38,000, is sought by Associated with this we re looking to increase the number of coaches and referees at all levels. Investment at grass roots, such as the Cash Back for Communities, helps us to actively work with clubs to make them more sustainable, attract more players and participants and build on the growth we are already witnessing in the community game. CHIEF EXECUTIVE S REVIEW ANNUAL REPORT 2007/08 09

10 C H I E F E X E C U T I V E S R E V I E W Mull RFC The 2008 Isle of Mull 7s was a huge success, involving the whole of the island in an all day rugby event. The morning mini tag tournament saw every village on the Island (12) enter a team and, with the emphasis on participation, every player received a medal. In the afternoon, 22 teams competed for the men s and women s trophy. Despite its location, Mull are enthusiastic supporters of the Argyll and Bute youth rugby gatherings. The club sends teams, no matter the distance they have to travel off the island, to those monthly events. Following a Tag Rugby Roadshow, a series of satellite Tag clubs was established throughout the island. Two Mull players are in the Glasgow U16 training squad and in September 2007, Mull RFC won the prestigious Scottish Hydro Electric Club of the Month award. These are just some examples of how energy and enterprise are growing the game on a remote island. Through volunteer community rugby involvement, with support from Scottish Rugby through its Regional Development Manager, rugby is now the sport of choice among school children on the island. 10

11 TEAM SPIRIT This season has witnessed a hugely welcome change in the fortunes of our two professional sides. After a difficult summer period, we re-acquired Edinburgh Rugby in August 2007, and then quickly integrated the business back into Scottish Rugby. Since then, we have strengthened the playing squads of both teams, and some great giant-killing performances by Glasgow and Edinburgh, both home and away, have resulted in high finishing places in the Magners league. With Edinburgh finishing fourth in the league table, denied third on points difference by Munster and with Glasgow in fifth place it s been massively encouraging to watch both our professional sides grow in confidence and success. The derby games and associated competition for the 1872 Cup has been a huge draw for both teams support with record crowds achieved in both Glasgow and Edinburgh. It has been heartening to welcome supporters to both Firhill and Murrayfield with the promise of a great spectator experience and gritty competitive performances on the field. With a host of players from both teams committing to new contracts and the welcome return of others to Murrayfield and Firhill, next season promises to be exciting. In the international arena, it has been a season of emotional highs and lows, involving the senior squad through to the youngest age grade sides from the overwhelming disappointment of our exit at the quarter final stages of the Rugby World Cup on a balmy night in Paris to the A team s thrilling victory over Ireland A on a chilly evening in Perth to the U17 side s defeat of France at the recent Millfield festival. With one of the youngest national squads in international rugby, we experienced a disappointing outcome to the RBS 6 Nations Championship, but then made history in winning the second Test in Argentina, our first ever Test win on Argentinian soil. Upon the return of the national management team in July, we will review the set up to ensure our national side has the best support possible as we move into the Autumn Tests and seek to improve our seeding for the next Rugby World Cup. TAKING THE INITIATIVE The growth of confidence in our abilities is reflected in several areas in which Scottish Rugby is determined to take a lead. For example, we are developing links with the Scottish Government and Glasgow City Council to make sure rugby benefits from the legacy of the 2014 Commonwealth Games in terms of provision of facilities and increased youth participation. Recognising the potential legacy and economic benefits accruing from the Rugby World Cup 2015, we have recently been in discussion with the IRB and the Scottish Government to consider the possibility of Scotland bidding to co-host the second biggest global sporting event, in seven years time. Looking outward, we have also been actively lobbying many of our fellow rugby nations to revise the drafting of the IRB s proposed new regulation 9, surrounding the release of players by their clubs with regard to international duty. This is not just a concern of Scottish rugby with players in demand by French, Welsh, Irish and English clubs but many other nations such as Argentina, Italy and the Pacifi c Islanders. Closer to home, we are working with The City of Edinburgh Council, EventScotland and other key partners to achieve common goals as we look to promote Edinburgh as a destination of choice. The massive impact of rugby in relation to bringing money into Scotland s economy, particularly during the RBS 6 Nations championship, cannot be underestimated. Similarly, we look forward to hosting the Heineken Cup Final 2009 in Edinburgh. Additionally, we are striving to develop important stakeholder relationships with other key partners including Food Standards Agency Scotland and Aberdeen City Council, as well as others throughout Scotland. We acknowledge and appreciate the continued support and assistance provided by sportscotland and the Scottish Institute of Sport. SWRU CUP FIN AL ACT ION CHIEF EXECUTIVE S REVIEW ANNUAL REPORT 2007/08 11

12 C H I E F E X E C U T I V E S R E V I E W Rugby Champions In partnership with Scottish Widows Bank, Scottish Rugby recently launched its Rugby Champions programme. The initiative aims to increase the amount of rugby played in state secondary schools while rewarding the dedicated schoolteachers who give up their spare time to take extra-curricular rugby. It works by rewarding the school s registered rugby champion with personal coaching kit and provides the school with specialist rugby equipment for coaching and training; additional equipment is then provided as rugby develops at the school, in accordance with levels of participation. As a result of the successful central region pilot, the number of affiliated rugby schools in the region has risen from 7 to 17, and the number of school teams has risen from 39 to 48 (23%). Scottish Rugby expects the initiative, once rolled out nationwide this summer, to take the number of Scottish state schools playing rugby from 184 to 300, over the next three years. PROPERTY AND EVENT MATTERS Looking ahead to the anticipated arrival of the Edinburgh Tram Line initiative, we are preparing for the inevitable disruption this will cause at Murrayfield. Together with the planned flood defence work in the same area, this will result in the permanent loss of two of our back pitches. On a brighter note, however, we will take this opportunity to upgrade the remaining four pitches to ensure that we continue to have a world-class stadium and surrounding grounds that will enable us to attract premium global events to Murrayfield and to Edinburgh. To this end, discussions are underway with a number of key sporting organisations with a view to attracting these groups to Murrayfield, where we can provide a unique match day experience for up to 67,700 spectators. PARTNERSHIPS WORKING This year we have been fortunate to welcome many new sponsors to our team, not least Murray, the new team sponsor of Scotland, who came on board with a three-year deal worth 2.7m. At the end of May we announced our biggest ever sponsorship deal with Canterbury of New Zealand who extended its kit sponsorship deal through until But it s not just at international level that Scottish Rugby is attracting support from the business community. Sponsors are eager to be part of our growing community game both Scottish Hydro Electric and John Lewis have joined with us to add their backing to the sport at club and youth levels. Martin Currie became our age grade and women s rugby team partner whist we welcomed the arrival of Spire and Belhaven as our healthcare and beer partners respectively. 12

13 A recent partnership agreement between Scottish Rugby and the Scottish Touch Association STA aims to raise the profile and participation levels of the sport throughout the country in a deal that benefits both parties STA will benefit from Scottish Rugby s networks in developing the sport while we see the non contact version of the sport as a fantastic way of attracting new players into the game, improving the skills and fitness levels of all participants. CHALLENGING TIMES AHEAD Scottish Rugby has made continued and steady progress over the last twelve months and the outlook for the organisation and rugby in Scotland can be viewed with optimism. Like any other business during this economic climate, we will face inevitable challenges in the period ahead but we now have a stable and committed group of staff who, together with strong internal procedures, can provide our many stakeholders with reassurance that we are facing the future with confidence. Of particular relevance will be the long overdue need to gain greater broadcasting coverage of our game at all levels and, to this end, a longer term strategy is being prepared to sit alongside an overall communications and marketing plan for the organisation. Strategic Plan In December 2007 Scottish Rugby s fi ve year Strategic Plan for the sport entitled Growing locally, performing successfully, competing globally was launched. Building on the success of the Genesis Report, the basis of Scottish Rugby s annual business plans over the preceding two years, the Plan sets out the vision for the game across the four key areas of community rugby, rugby performance, fi nancial and commercial, and governance and administration. Within the community game, Scottish Rugby aims to achieve a 35% increase in adult players and a 38% increase in youth players by The key to meeting these and the other targets contained in the Plan is to continue to develop the network of partnerships, formal and informal, whether between schools and clubs or clubs, Scottish Rugby, local authorities and other stakeholders. In an effort to ensure the vision was shared with those at the grass roots of the game, Scottish Rugby took its show on the road with a series of presentations to clubs throughout Scotland in the months following the launch. Rugby who have not only continued to respond to a testing environment but who have also supported me and the Board in our endeavours to make further progress. With increased player numbers, renewed appeal in the performance of our professional teams, greater spectator and supporter interest than at any time before, we look forward to the new season and to making further progress throughout 2008/09. CHIEF EXECUTIVE S REVIEW ANNUAL REPORT 2007/08 13

14 F I N A N C E D I R E C T O R S R E V I E W Eamon Hegarty: THE IMPROVEMENTS TO THE FINANCIAL SYSTEMS IMPLEMENTED OVER THE LAST TWO YEARS ARE NOW FIRMLY ESTABLISHED AND HAVE ENABLED SCOTTISH RUGBY TO ACHIEVE A BREAKEVEN POSITION*, FOR THE SECOND YEAR RUNNING. Signifi cant progress has also been made during the year in various other related areas including further improvements to our cash management process, development of our IT systems and conclusion of a strategic planning review. We are also working hard to promote Murrayfi eld Stadium as a venue for major rugby and other sporting events in order to maximise our revenue for the benefi t of the game. Borrowing levels for the year compare favourably to the previous year, as a result of ongoing efficient working capital management and early on-sale of match tickets. This is despite the adverse cash flow impact of the Rugby World Cup 2007, where IRB revenue contributions lag behind ticket sales and broadcasting receipts in a non-world Cup year. Average borrowings for the year amounted to 18.4m compared to the previous year s average of 18.6m. Year-end debt of 17.6m is in line with the April 2007 yearend debt of 17.4m. Current year cash flow performance since April 2008 has been exceptional. Following various Six Nations, IRB and ticketing receipts, total bank borrowings in early May 2008 dropped below 15m for several days which is the lowest level achieved in the last three years. Budgeted average borrowings for 2008/09 amount to 17.5m, representing a further year-on-year improvement of 0.9m. In order to give some certainty over our debt servicing costs, and to take advantage of relatively low interest rates, we have recently entered into an interest rate swap agreement which fi xes the interest rate on a signifi cant proportion of our core debt. The agreement applies to borrowings of 10m at an average interest rate of 6.35% for a fi ve-year period to March Following the great success of the FC Barcelona v Hearts match in July last year, where over 57,000 football fans attended the game at Murrayfield, we have successfully attracted further non-core rugby and other sporting events to our national stadium for the coming season. FC Barcelona will again visit Murrayfield in July 2008, on this occasion playing Hibernian FC in a pre-season friendly. We have also been successful in our bid to bring the Heineken Cup Final to Murrayfield in May 2009 a fantastic addition to our core rugby programme which, this season, includes games against New Zealand, South Africa, Canada, Wales, Italy and Ireland. These additional events make a signifi cant contribution to Scottish Rugby s revenue for further investment in growing the game of rugby and showcase Murrayfield s world class facilities. Progress is being made, in partnership with EventScotland and The City of Edinburgh Council, to attract other high profile events to Edinburgh. RICHIE VERNO N, SCOTLA LAND 7S 14 * after interest and before exceptional items

15 STRATEGIC PLAN After a period of signifi cant change for Scottish Rugby, including the implementation of the new governance structure during 2005, the Board decided in 2007 that the time was right to reaffirm the organisation s overall aims and objectives and to agree a long-term plan. This would confi rm the clear direction for the organisation that would pave the way for the future success of the game in Scotland. A full strategic planning process has therefore been undertaken over the last year, which built on the successful aspects of The Genesis Report, the previous review of the game, which was published in The review process included interviews and group sessions with key personnel across all areas of the organisation. A Steering Group, comprising the executive directors and the senior management team, oversaw this process and the Scottish Rugby Board and the Scottish Rugby Council approved the resultant plan in November The plan was subsequently communicated to member clubs by means of a series of presentations around the country, and to other key external stakeholders including sportscotland, the Scottish Institute of Sport, local authorities, partners and sponsors. The overall Vision for Scottish Rugby which was determined by the strategic review process is Scottish Rugby Growing locally, performing successfully, competing globally and supporting visions were established for the key areas within the organisation, namely Community Rugby, Performance Rugby, Financial and Commercial, and Governance and Administration. The plan also sets out departmental aims and objectives together with related performance measures that will be monitored on an ongoing basis. CHRIS FUSARO AT THE ED DUBA BAI I7 7S INFORMATION TECHNOLOGY Scottish Rugby s IT needs are wide ranging and cover not only our internal data management needs (such as HR, Medical, Finance and Ticketing) but also our externalfacing systems including our various web sites and sports management system for club player registration and other related purposes. A formal strategy is in place for the development of IT and data management, and significant improvements have been made in the following areas during the year: Development of robust and vibrant web sites for Edinburgh and Glasgow professional teams, Emirates Airlines Edinburgh Sevens, Scotland Rugby Supporters Club and TEAMtalk in line with our strategy to improve performance and user experience Implementation of Content Security systems to secure and manage Scottish Rugby s Internet traffic, providing an additional line of defence against viruses, spam and other inappropriate content The introduction of improved data communications with remote and mobile workers A significant improvement in the performance and reliability of IT workstations through the introduction of a phased technology refresh strategy The other main financial headlines for the year were: TURNOVER Total revenues amounted to 28.2m, an increase of 2.6m over Murrayfield ticket revenues decreased from 7.1m to 5.5m which reflects the two RBS 6 Nations fixtures against England and France, compared to the previous year s three fixtures. Broadcasting revenues of 7.2m were 0.4m below the previous year, due to the reduced value of the 2007 Bank of Scotland Corporate August Tests compared to the 2006 Bank of Scotland Corporate Autumn Tests. Other revenues of 15.6m include income from commercial sponsorship, match hospitality, conferencing and banqueting activities, professional rugby (primarily from the Magners League and European Rugby Cup), merchandising, grant income and income from non-rugby events. They also include additional grant income from the IRB in this Rugby World Cup year, additional hospitality and event income, including income from the Emirates Airline Edinburgh Sevens, which are the main reasons for the increase over the previous year. COSTS Total costs increased by 2.6m to 26.8m mainly due to the additional costs of the Rugby World Cup Within this total, the costs of international and professional rugby increased from 12.0m to 14.2m. This increase is mainly due to additional player, travel and accommodation costs of the Rugby World Cup, including training camps, as well as the costs of hosting the two Rugby World Cup games and the Emirates Airline Edinburgh Sevens at Murrayfield. The gross costs of professional rugby increased slightly from 7.9m to 8.0m, with the savings from the closure of the Borders team being offset by additional investment in Glasgow and Edinburgh. The overall net expenditure on professional rugby of 4.1m remained in line with the previous year. Expenditure on Community and Performance Rugby (after restatement as disclosed in the notes to the fi nancial statements) increased from 2.3m to 2.8m during the year, due to additional regional and performance development expenditure, in line with Scottish Rugby strategy. Commercial and operational costs of 8.0m were broadly in line with last year s total of 8.2m. Employee numbers have increased during the year from an average of 249 to 259, mainly as a result of additional players, coaching and performance development staff. The notes to the fi nancial statements include a detailed analysis of employees which demonstrates that most Scottish Rugby employees are directly involved in rugby operations. BALANCE SHEET After adjusting for bank borrowings, Scottish Rugby s overall net worth at April 2008 amounts to 18.4m, which is in line with the previous year. As noted earlier, average bank borrowings over the fi nancial year amounted to 18.4m compared to the previous year s average of 18.6m, due to continued proactive working capital management and early on-sale of match tickets. Year-on-year bank interest is broadly similar at 1.3m. Year end bank borrowings of 17.6m are in line with the previous year end level of 17.4m. FINANCE DIRECTOR S REVIEW ANNUAL REPORT 2007/08 15

16 H I G H P E R F O R M A N C E R U G B Y SCO TLA ND BEATA ARGE RGENTI NTINA NA IN THE SECON DT TEST IN BUEN ENO NOS AIRES NATIONAL TEAM As a sporting spectacle, the Rugby World Cup is undoubtedly the major event in the rugby calendar. During Scotland s fi ve matches in Rugby World Cup 2007, the team was watched live by 240,000 spectators at three different venues and by many millions on TV. The two Bank of Scotland Corporate August Tests at Murrayfield were the focal points of the squad s build-up. The win over Ireland confirmed that Scotland was in excellent shape and had a powerful squad at its disposal. Following the game against South Africa, preparation homed in on improving speed of both reaction and thought, as well as foot speed. A big plus about Scotland s opening Rugby World Cup game against Portugal was that the team had a bonus point in the bag after 28 minutes. Having given the Italians such a fright, more had been expected from the Romanians but Scotland was too efficient in all areas and the home advantage also played its part in that victory. The fi xture with New Zealand provided a real opportunity for many younger members of the squad to experience rugby at the highest level before a home crowd. Despite defending bravely for 80 minutes, and with some promising individual performances, this was not to be Scotland s fi rst victory over the Kiwis. Back in France, the fi nal pool game saw Scotland beat Italy which enabled the side to once again reach the quarter fi nals, one of only a handful of teams including New Zealand, Australia, France and England to have reached that stage in every Rugby World Cup. In the quarter fi nal with Argentina, a series of elementary errors by Scotland, early on in the game, meant the side progressed no further on this occasion. Following the tournament, it emerged that the Scotland squad had the youngest average age at the whole event, a fact that augers well for the future. Training for the RBS 6 Nations then followed, in what was to be a challenging Championship for the Scots. With many players employed at clubs outside of Scotland, increasing Regulation 9 difficulties which effectively allows access to players for preparation for international matches added to the injury issues of key players including Sean Lamont and Simon Taylor in the preparations for the event. 16

17 In the fi rst Six Nations fi xture, it was disappointing to be two tries down against France at half time but the questions asked of Scotland s set piece in the second half made it impossible to chase the game. Although Scotland improved in this area in the next game against Wales, a win was not forthcoming. Taking a much more attacking mindset into the game in Dublin, the Scots improved in both territory and possession but created too many opportunities for the Irish through elementary errors. After losing three games in a row, the challenge against England was to create an environment where everyone believed they could win. With the support of the sixteenth man, in the shape of the Murrayfield crowd, every member of the team did his job well and Mike Blair ascended the stairs to lift the Calcutta Cup the second time in three years that the trophy would have a Scotland win engraved on its base. Buoyed by the win, the team then faced Italy for the fi nal fi xture in the Championship. With a seven-point lead at half time, confi dence was high that the Italians would be unable to overhaul Scotland, however a second-half interception saw the home side snatch victory. This was especially hard to take but seemed to sum up an extremely frustrating yet disappointing Six Nations. The two-match summer tour to Argentina had been originally viewed as an opportunity to put a development side through its paces. It took on greater signifi cance, however, with the requirement to improve Scotland s world ranking by December 2008 to ensure a more favourable seeding for Rugby World Cup Although Chris Paterson surpassed Gavin Hastings points record for Scotland during the fi rst match in Rosario, the team tally wasn t enough to beat the home side. The following week, in Buenos Aires, it was another record for Chris Paterson - this time, becoming Scotland s most capped player - and a vastly improved team performance. Tries from Ross Ford and Graeme Morrison added to Scotland s tally from the boot of Paterson, as the side beat Argentina 26-14, Scotland s fi rst victory over the Pumas since Looking ahead to the Bank of Scotland Corporate Autumn Tests, Scotland welcome New Zealand and World Cup holders South Africa to Murrayfield, with Pittodrie in Aberdeen hosting the fi nal November fi xture, when Scotland take on Canada. SCOTLAND A The season kicked off with the appointments of Scotland s two pro-team head coaches, Andy Robinson and Sean Lineen, to the Scotland A coaching role. Two fi xtures against counterparts from Italy and Ireland were arranged during the RBS 6 Nations period, the latter game staged at McDiarmid Park in Perth. The campaign got off to an excellent start at the Stadio Comunale Mogliano in Venice on Sunday 3 February with the Scots recording a victory. Glasgow Warriors duo Graeme Morrison and Thom Evans crossed the line, Edinburgh pair Ross Rennie and Ben Cairns also found the score sheet while Gloucester prop, Alasdair Dickinson, was the fifth Scot to notch up a try. Edinburgh stand-off, Phil Godman, converted three of Scotland s tries and added two penalties to round off a successful fi rst outing. As soon as the team was back on home soil, Graeme Morrison and Simon Danielli were drafted into the Scotland 22 for the RBS 6 Nations clash at the Millennium Stadium, a testament to their performances for the A team. Next up, it was Ireland. A wet and windy week preceded what was shaping up to be a very tight encounter with many wrongly, as it transpired predicting the fi nal tally to be within a couple of scores. A 67-7 rout of Ireland saw Scotland run in ten tries to one with a spectacular display of fast-paced, dynamic rugby. With Lineen and Robinson drafted in to perform interim coaching duties during the national side s tour to Argentina, Rob Moffat backs coach at Edinburgh Rugby took over the reigns for the team s Churchill Cup campaign in North America in June. Nineteen uncapped players joined eight capped internationalists in a side that featured Colin Gregor, Greig Laidlaw, Andrew Turnbull and Jim Thompson, direct from their involvement with Scotland at the Emirates Airline Edinburgh Sevens. Captained by Glasgow Warriors Fergus Thomson, the team got off to a successful start with a win over Canada on a baking hot Saturday in Ottawa. A further victory, 27-24, against Argentina saw the side through to the Cup fi nal against England Saxons. ROLAN AND REID FOR SCOT OTL AND A AGA INS NST TC ANA DA COLIN GREGOR GOR IN CHURC HILL LCUP ACTION HIGH PERFORMANCE RUGBY ANNUAL REPORT 2007/08 17

18 H I G H P E R F O R M A N C E R U G B Y DAV ID CALLAM LAM RI SES AB OVE THE P ACK FOR RE EDIN BURGH VL LEIN EINSTE R EDINBURGH RUGBY Edinburgh enjoyed a very encouraging year of growth, both on and off the pitch. A new Head Coach and CEO were brought in to the club to lead it forwards and some promising results were achieved. Whilst crowds grew across the season, the team claimed some notable scalps. Andy Robinson (ex England World Cup winning coach) took over as Head Coach near the start of the season and achieved the club s best ever fi nishing position in the Magners League (ending the season in fourth position). In bringing through a crop of talented young Scottish players, Andy and his coaching staff (including the interim Scotland A coach, Rob Moffat) exceeded all expectations in delivering a winning and exciting team to watch. A number of these young players graduated to the Scotland team over the season and great things are expected of players such as Nick De Luca, Ben Cairns and Ross Rennie. Notable scalps during the season saw English champions Leicester Tigers beaten in the Heineken Cup, whilst the team won away in Belfast, Cardiff, Llanelli and Swansea (going unbeaten in Wales across the season). In the off season, Scotland stars Chris Paterson and Jim Hamilton will join the team to further strengthen the squad for the new season, whilst a healthy number of academy players have been promoted to the fi rst team squad. A new CEO was appointed at the start of the season Nic Cartwright joining from Harlequins RL Club and he led the club to achieve its highest recorded attendance in the Magners League (at the Christmas derby meeting with Glasgow Warriors), as well as growing the average attendance year on year. A concerted effort continues to be made to increase Edinburgh s value and work in the Community (both rugby and wider) with the club extending its efforts to build relationships right across the region. A number of new sponsors are expected to join the club in advance of the new season, whilst good relationships were nurtured across the business and wider community. In addition, Edinburgh has worked well with Glasgow Warriors to promote the Scottish derby games. This has resulted in a 50% increase in the gross crowd for the two games (against the previous year) and continues to ensure that they contribute to the wider Scottish aims. Looking ahead, a busy off season should see progress made on all fronts, and the club plans to show further growth in results across the organisation. The club will run new initiatives to drive crowds (with particular focus on the Heineken Cup games and the Scottish Derby) and plans are in place to ensure that the Club takes full advantage of its home ground, Murrayfield Stadium. There is a very real sense of growing optimism that the club will continue to flourish and achieve over the year ahead. GLASGOW WARRIORS When the 2007/08 season ticket prices were announced in August, a promotional photocall was arranged at Strathclyde Country Park featuring some Glasgow players on a rollercoaster ride to reflect the highs and lows of the season. As it turned out, a more appropriate vehicle could not have been picked to reflect the season experienced by the Warriors. Beating Biarritz at home, Viadana home and away, winning the 1872 Cup at Firhill, and obtaining a record crowd of over 5,213 against Saracens in the Heineken Cup were some of the memorable highlights. 18

19 Overall crowds have grown by over 20% this season and the team has had its best ever showing in the Magners League and Heineken Cup competitions. Glasgow is progressing on and off the field. Next season will bring even more improvement from the team with some new faces, including Mark McMillan, joining the side to strengthen the squad. Mark will be joining a group of players that has been boosted by the news that Al Kellock, John Barclay, John Beattie, Kelly Brown, Justin Va a, Murray Low, Kevin Tkachuk, Tom Evans, Dan Turner and Bernie Stortoni have all extended their contracts with the Warriors. The club aims next season to have an average attendance of over 3,000 fans. There are some exciting plans in place with further expansion of the Champion Warriors scheme, which now has 86 schools, community groups and rugby clubs committed to the programme. A revised package of season ticket offers has just been launched, offering far greater value for money with U18 season tickets costing just 30. The new Community Board is at full strength, now that Walter Malcolm and Douglas McCrea have joined Sean Lineen and Chairman Charles Shaw on the Community Board and are tasked with helping to increase attendances. As mentioned earlier, there has been growth in the Champion Warriors programme that was launched just six months ago. This initiative ensures that the Warriors and the grass roots champions of rugby union in the schools and clubs engage for mutual benefit. There is every confi dence that this scheme will continue to develop and prosper in the year ahead. A huge vote of thanks must go to the supporters who have backed the team with unquestionable loyalty, passion and commitment throughout the year. They have had to battle some truly awful winter weather to get to Firhill during the season and it s always a thrill to watch the Jackie Husband Stand fill up with fans eager to get behind the team. Everyone connected with the Club is certain the best years for the Glasgow Warriors lie in its future and with continued support, backing and belief it will carry on flourishing both on and off the field. SCOTLAND WOMEN A hard fought fifth place at the European Championships in June marked a satisfying end to a difficult season. The comeback performance against a resurgent Spanish side, featuring the player of the tournament, was testament to the squad and coaches determination to address one of the identified areas for improvement from the Six Nations to build on Scotland Women s improving fitness testing scores to maintain the required intensity of competition over a full 80 minutes. The Six Nations is the premier annual international Women s competition, allowing some of the top ranked teams in the world to regularly test themselves and producing continuous improvement in the standard of rugby on display. Although there were obvious improvements from the heavy defeat against Canada in November, it was disappointing to fi nd Scotland slipping to sixth place this season. Results don t paint the whole picture, however, and there were some impressive areas of individual improvement and team performances. France was on the receiving end of a tough fi rst half mauling at Meggetland; Ireland was pushed to within seven points; and Scotland scored the fi rst points of the tournament against a dominant England team. The absence of three or four key players due to injury and work and study commitments has given some new faces the opportunity to make their mark on the international stage, with eight new caps this year. Meggetland continues to provide an excellent Six Nations home venue for Scotland Women and numbers and ticket sales continue to climb steadily, with a crowd of over 500 for the Scotland v France game this season. Taking the autumn international against Canada to Glasgow in November was also well received, with Hillhead Jordanhill and Glasgow City Council providing exceptional support for the event. Martin Currie remains an active and committed sponsor. Scotland Women are proud to have been associated with the company and have enjoyed hosting representatives at home matches and training events this season. It is all change again in the coaching team this season, with Jamie Dempsey bringing his youth and enthusiasm to the management team, as backs and defence coach, to great effect. After his second year as the steady hand at the helm, however, Lee Adamson moves on to new challenges. The squad is now actively seeking a new and suitably experienced Head Coach to lead Scotland Women to the World Cup in GLASGO SGOW W ARR RRIO IOR RS BERNAR NARDO STO ORTO NI SCOTLA TLAND WOMEN VF FRAN CE WOM EN hhigh PERFORMANCE RUGBY ANNUAL REPORT 2007/08 19

20 P E R F O R M A N C E D E V E L O P M E N T One of the major pieces of work and highlight of 2007/08 has been the creation of the first ever Performance Plan for Scottish Rugby, produced by many staff across the various disciplines within our organisation. sportscotland, the Scottish Institute of Sport and the Area Institutes of Sport have provided invaluable support and advice in this regard. The plan, which brings together all the work within talent identification, performance development and high performance, aims to achieve the objectives within the performance section of Scottish Rugby s Strategic Plan over the next five years. SCOTLAND 7S Scotland was again a core team in the IRB Sevens World Series and participated in all eight tournaments throughout the year. A mix of Senior Academy, Junior Academy and professional players were exposed to international sevens competition throughout the season. The average age of the squad was 22 years old and 60% of those selected came from the National Academy structure. The squad began its preparations for the 2007/08 IRB Sevens World Series campaign by taking part in the Singapore Cricket Club International 7s in October. A team of 11 National Academy players and one full-time professional player travelled to Singapore under the Rugby Ecosse banner, thanks to the sponsorship support of Weatherford Pipeline & Specialty Services. Although disappointed to lose 17-5 in the quarter fi nals to eventual tournament winners the South African Vipers (the South Africa sevens team), there were a lot of positives for the players and management to take from the event. In addition, the level of competition and the humid conditions made it ideal preparation for the subsequent IRB Sevens World Series. RODDY DY GRA RANT TAK ES ON KENYA AT THE HO NG KONG GSEVE VENS 20