NO QUICK FIX FOR FINANCIAL PROBLEMS
Posted: 27/Aug/06

There will be “no quick fix” to Scottish Rugby’s financial problems, clubs attending today’s SRU Financial AGM were told.

That was the message from the SRU Finance Director Eamon Hegarty who noted that the aim for the current year is to consolidate and achieve a break even position after a loss of £400,000 in the last financial year (2005-06).

Hegarty reported that turnover in 2005-06 increased, costs remained static and the core bank debt remained at £23 million.

Scottish Rugby Board Chairman Allan Munro said that while it was regrettable in such a financial climate that there would be no prize money available for the club league and cup competitions this season, Scottish Rugby was increasing money available to invest in the club game by some £430,000. “I hope an increase of 94% towards developing the club game is recognised as a sound investment,” he added.

The money will be available to those clubs who wish to join the SRU in partnership in growing the game, potentially to help clubs to fund their own development officer.

At present, there are some 15 club development officers and the Union is in discussion with a number of clubs which could see that figure doubled by the end of the season. The target for the next three years is for that figure to quadruple.

Colin Thomson, the SRU’s Head of Community Rugby, said that at present there were 9,401 adults playing rugby in Scotland and 15,504 youngsters and that so many of the problems affecting Scottish Rugby could be tackled if more players, volunteers and supporters were encouraged to take part in the game.

Scottish Rugby’s targets for April 2009 are:

• A 25% increase in the number of adults playing rugby
• A 30% increase in the number of youngsters playing full-contact rugby
• A 50% increase in the number of qualified coaches
• A 30% increase in the number of active referees
• Improvement in the standards of play within the community game

Allan Munro noted that Scottish Rugby was regaining credibility with the business community and politicians at local council and Holyrood level.

He said: “If the politicians can help by throwing their weight behind sport and a healthier lifestyle and they help the national governing bodies, clubs and schools to improve their facilities then, quite possibly, we may be looking at a change of fortunes for Scottish Sport and rugby in particular.”

The annual accounts and re-appointment of auditors were not approved at today’s meeting as attendance was short of a quorum. There were 77 voting delegates present with 102 required for a quorum. As a consequence approval for the accounts and the re-appointment of auditors will be sought at the SRU’s AGM in June.

This article was posted on 27-Aug-2006, 19:50 by Hugh Barrow.