Scottish Rugby Annual Report 2014/15 Scottish Rugby BT Murrayfield, EH12 5PJ Contents Tel: 0131 346 5000 scottishrugby.org | @scotlandteam 2 President’s Welcome

4 Chairman’s Review

6 Chief Executive’s Report

8 BT Sport Scottish Rugby Academy

12

14 Scotland 7s

15 Scotland Age Grades

16 Warriors

18

20 Women & Girls

22 Referees

24 Coaching Pathways

26 Clubs

28 Schools & Youth

30 Commercial Report

32 Corporate Social Responsibility

33 Working with Government

Front cover 34 Social Media Al Kellock lifts the Guinness 36 Health & Safety PRO12 2014-15 Trophy 37 Club & School Results Back cover Scotland Women 38 Strategic Report

Photography 40 Governance SNS Pix 46 Board Report

Produced by Scottish Rugby Editor Financial Statements Bronwyn Torrie 48 Independent Auditors’ Report Designer Laura Chessar 51 Income & Expenditure Account

52 Balance Sheet

All information correct at time of going to 53 Cash Flow print on 23 July 2015 54 Notes

61 Five Year Summary To download a copy please visit 62 Commentary on the Accounts scottishrugby.org/annualreport

Leadership . Engagement . Achievement . Enjoyment . Respect 1 3

Ian Rankin RWC Trophy Tour The Webb Ellis Cup was taken on a whistle-stop tour around Scotland in June, as part of its global journey to Twickenham President’s for the opening RWC 2015 match. Rugby clubs across the country hosted the trophy and events to inspire people of all ages to get involved and support Scotland. Welcome 4 3 This season has been particularly exciting as the quality of domestic rugby has continued to rise.

While players have put in hundreds of Selkirk Rugby Club for more than 70 Boroughmuir lifted the BT Cup with a hours of training and, in some cases, years. The Club Awards Dinner was also powerful performance to overcome thousands of miles of travel, supporters a special affair for Livingston Rugby Hawick, St Boswells completed a league 3 have stood on the sidelines in rain, hail Club’s Lee Anne Steel, who was named and cup double by winning the BT 2 and shine to watch exciting showdowns BT Volunteer of the Season for her tireless Shield and Alloa were crowned BT Bowl 5 as teams battled for coveted silverware work to ensure the growth of rugby, champions with an eleven try victory 2 in their respective leagues. particularly at youth level in her region. over Cumnock. Day 1 Jedburgh In the women’s finals, Watsonians These matches simply wouldn’t go ahead if it wasn’t for Day 2 North Berwick, , won the BT Women’s Bowl, Stewartry BT Murrayfield 5 1 volunteers who give up their time to coach, referee, serve claimed the BT Women’s Plate with Day 3 Howe of Fife, on committees and roll up their sleeves to ensure clubs Hannah Sloan, who made her Scotland Wanderers, Banff, Deeside, Women debut this season, crossing Huntly & Mackie Academy survive and thrive. Orkney RFC the whitewash three times. Murrayfield A fantastic example of this are the Spirit BT Cup Finals Day was a highlight of Wanderers won the Sarah Beaney Cup Day 4 Highland RFC 5 days, 13 clubs of Rugby award winners, Jim ‘Basher’ the season when over 10,000 people to add to their BT Women’s Premier Day 5 Stadium, Ayr RFC 14 Scotland players Inglis – a former Scotland internationalist converged on BT Murrayfield for a sun- League title, before winning the BT - and his wife Mary, who have served drenched day of first-class club rugby. Women’s Club of the Season award. 1000 miles travelled Well done to Heriot’s on winning the BT Club Highlights Premiership and to their coach Phil Smith for being named Caledonia Best Coach McLaren Rugby Club returned Currie were of the Season. The club also celebrated to their home in Callander the Scottish their 125th anniversary in style with a after three years away, Rugby Under-18 game against the Barbarians who also following £45,000 of CashBack League and celebrated 125 years. for Communities funding to Under-16 League develop their facilities champions It has been a huge privilege to serve as President during a time of expansion, particularly in grassroots rugby where more money than ever is being invested. Making the game sustainable and growing it from the ground up Scottish Rugby Chairman Sir Moir wouldn’t be possible without our Lockhead switched on Deeside’s sponsors, and in particular BT. new at Woodend Playing Fields, Banchory. The lights I would like to thank everyone who were funded through the club’s plays their part in the success of Scottish capital and with the support of Over 20 Scotland players were involved in the Four years after being formed, Rugby and for your support throughout sportscotland and the CashBack Royal Bank of Scotland RugbyForce weekend Stewartry Sirens lifted the 2015 this memorable club season. Heriot’s celebrate winning the BT Premiership for Communities facilities fund. which helped 150 clubs to kick off the season BT Women’s Plate

2 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 3 Sir Moir Lockhead OBE Net interest Club Support

Chairman’s Depreciation

Average Review debt Scottish Rugby continues to expand all areas of the game Domestic to ensure it is sustainable at every level. At the same Broadcast below £10M & Performance time, we have reduced our debt burden. for first time in over a decade Our average debt fell to below £10 national strategy and Shade Munro has City Council, the Scottish Government million for the first time in over a decade joined Scotland Women as Head Coach and Scottish Rugby, the decision lacked and our investment into the domestic from his post at . any logic and was extremely frustrating game continued to rise. to all involved. This sends a clear message that Scottish over Turnover was over £500,000 higher Rugby is committed to growing player Despite this, we had a very successful compared to the previous season. numbers and closing the gap with other year as we continue to inspire Scotland Additional sponsorship income from BT nations on the international stage. through rugby and ensure our young and higher RBS 6 Nations ticket revenues people enjoy the game. The Schools and Youth structure has £500k contributed to the increase. been revised this year with extensive Finally, I would like to thank the players, Ticketing Commercial While our professional teams have made consultation on the proposed format. coaches, volunteers and Scottish Rugby & Operational The aim is to ensure more players get staff for their hard work this season. great strides on the field, the impact of Turnover last year’s BT sponsorship agreement onto the field and graduate through has started to benefit clubs, schools and the age grades and adult game with compared to 2013/14 communities directly. improved skills.

At the heart of our investment from the This year has seen a dramatic rise in the ground up is the BT Sport Scottish Rugby number of qualified coaches, with over Academy, and much work has gone into 950 coaches achieving a qualification getting all four centres up and running for and over 4,500 attending workshops and the first intake of 87 young players. conferences thanks to Scottish Rugby.

The Academy gives us a real Player safety remains the highest opportunity to drive players and priority and I would like to commend coaches through a system that will Dr James Robson for his contribution to consistently benefit schools, clubs and, the ‘If in doubt, sit them out’ guidelines ultimately, Scotland’s professional and on managing concussion in Scottish national teams. We are grateful to BT sport. We also introduced the World and our other local partners for their Rugby First Aid in Rugby Level 1 Course help in bringing these plans to fruition. this season and continued to deliver our RugbyReady course to thousands This holistic structure will not only expand of teachers, coaches, referees and our depth of homegrown talent, it volunteers. will also provide another pathway for The organisation suffered a serious Scottish coaches to rise up the ranks. Expenditure

blow when World Rugby removed the Income Emirates Airline Glasgow 7s from the We are also entering a new era for Other Women and Girls’ Rugby. We are in the Sevens World Series. After nine years of operating International final stages of realising our ambitious hard work and investment by Glasgow income & Pro Game £44,243k £44,219k

4 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 5 Mark Dodson Club Sustainability Fund £60k Howe of Fife* While there have been some great moments £37.7k £38k on the pitch, there has also been a of hard Perthshire New pavilion & changing Lismore room with fitness, rehab, work in the background to make the game Strength & Training lights & conditioning suites, Chief Executive’s sustainable from the grassroots up. conditioning community café and showers suite social facilities The health of rugby at all levels is paramount to the growth and £40k Report success of the sport, which is why Clydebank It has been a positive year for Scottish Rugby with our two we are investing heavily in the 3G Pitch £50k domestic game. professional teams making history at the business end of £38.6k Duns* the season. Nothing has given me more Renovation of school pleasure this year than rolling out our Stewartry* gym into new A further 41 clubs received up Changing rooms, £1.6 million Club Sustainability Fund, made clubhouse to £2000 from the Fast-Track After 20 home-game wins on the trot, Scotstoun welcomed an historic sell-out floodlights, possible through our partnership with BT. building strand of the Club Sustainability Glasgow Warriors lifted the Guinness crowd at the Emirates Airline Glasgow gym Fund for maintenance and PRO12 trophy. It was a breakthrough 7s and there wasn’t a spare seat in the Fourteen clubs benefitted from the first £25k improvement projects. moment for the club and I am house for Glasgow Warriors’ last two round of funding and I am delighted Haddington* absolutely delighted for Head Coach Guinness PRO12 games, with crowds of this investment, across a range of Clubhouse £38k £10k £10k £10k £10k £10k and the team - they 10,000 recorded at each. major projects, will improve facilities for renovation Biggar* truly deserved the win. club members, local communities and It’s important we maintain and Stewart’s Melville, Hawick Community Rugby 23% independently generate more business Pitch & training Edinburgh Rugby also entered the strengthen our relationships with fans as area extension Trust, Falkirk, Kelso & Linlithgow (£9862) to reinvest in the game. Club support & record books when they became the every pound from ticket sales goes back New Business Development Officers F i s £37.5k v development e first Scottish side to reach a European into the game. e s c a o re cup final. They played a consistently high Selkirk* *additional funding received from sportscotland ns c e in Thank you for your loyal support and we cut of standard of rugby under pressure during Changing room ive years look forward to sharing further successes the and the foundations extension with you next season. are now in place for them to go one Selkirk RFC better next season, under Head Coach The changing rooms at Selkirk Rugby Alan Solomons. Club will get a complete overhaul for the first time in 80 years thanks to Scottish Rugby’s Club This success is just the start of our journey; Sustainability Fund. Club support and we have to build on the gains. But most development now exceeds of all we now have proof that players The club, which won promotion into the BT Premiership this season, secured £37,500 towards £2.7 million, a 23% increase and coaches can stay in Scotland upgrading their facilities to accommodate the on the previous year and and win silverware. We know we still growing number of teams at the club. follows a 16% rise have much to do and achieve, but in 2013/14. are looking forward positively to more sportscotland awarded a further £37,500 taking the competitive and entertaining rugby. total amount to £75,000. There is no doubt the Scotland team “This will make a huge difference. has improved, particularly during the For us to raise that kind of money Autumn tests, but sadly this wasn’t would take four to five years. reflected in the final scores during the RBS 6 Nations. We have work to do “We are a community club, we ahead of the 2015 Rugby World Cup. rely on bringing our young players BT Murrayfield has welcomed capacity through. Now we can give the 196, 476 crowds this season following sell-out players good changing rooms and matches against Ireland and , which it just finishes off the ground.” Selkirk’s oldest living Scottish international Jim Inglis and Selkirk Captain supporters watched Scotland’s three contributed to the highest ever ticket sales John Rutherford, President, Selkirk RFC Andrew Cavanagh RBS 6 Nations matches at BT Murrayfield in the tournament’s history in Scotland. Alloa v Cumnock in the BT Bowl Final

6 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 7 Highly skilled staff have been recruited Academy Managers BT Sport Scottish Rugby to work with players and stakeholders Adam Ashe within each region to identify future was capped talent and to help instil performance in the summer behaviours and methods. Individual tour while player plans and region wide still an Elite Academy programmes under the agreed national framework are being developed. Development The national launch of the BT Sport Scottish Rugby Player Development off the field will have Academy in June marked a new beginning to raise the a greater focus, with education Graeme Beveridge | Edinburgh standard and flow of young talent into the top echelons embedded within the Academy Edinburgh Napier University, Sighthill of the game. programmes. A flexible training In partnership with Edinburgh Napier approach will allow for personal University & Edinburgh City Council While work was on-going to secure Making gains Homegrown talent development alongside rugby, to help facilities, staff and players for the realising potential in players become better, well-rounded new Academy structure, the existing Great strides have been made since the individuals. performance development programme Academy structure was outlined in The Season 2014/15 continued. On top of playing for their Way Forward policy initiative 18 months The Academy will also provide a club and school teams, 52 players were ago. The landmark BT sponsorship deal pathway for the next tranche of scotlan has enabled Scottish Rugby to provide port d a also exposed to the professional stage, h s nd coaches to bridge the gap between it In w s significant investment into the Academy. ti the club and professional games. including the Under-20 Six Nations, ip tu h t rs e Scotland 7s and the Guinness PRO12. This exciting national initiative will, for e o n f Working to improve the next generation t r S By the end of the season, seven players the first time, see both male and female a p of players and coaches within the Bruce Frame | Caledonia p o 27 r Aberdeen University, Hillhead Centre n t had signed full-time contracts with our players supported within their respective i players BT Sport Scottish Rugby Academy In partnership with University of regions, while still ensuring our future supported regionally two professional clubs. Zander Fagerson, will undoubtedly prove significant at Aberdeen & Aberdeen Sports Village Fergus Scott, Glenn Bryce and D’Arcy professional male players have strong all levels in the game and will help Rae have joined Glasgow Warriors, links and opportunities to be involved provide greater consistency and while Edinburgh Rugby have secured with our pro-clubs. competitiveness in the future. Magnus Bradbury, Blair Kinghorn and To allow this regional support, we have + Rory Sutherland. secured four new centres with top-class 25 “The Academy is not about taking players out of their “Where our Academies are unique, in my experience, players contracted to pro teams normal environments, it’s about adding value to a s is that our national coaches will work with them on a s r E ye individuals and having a positive impact on rugby in lit la Jamie Dempsey | Glasgow & The West weekly basis. Any player in our Academy structure is e D t P evelopmen the region by instilling performance behaviours at , Cumbernauld only two steps away from working with the likes of clubs and schools” Stephen Gemmell, Head of Academy In partnership with North Lanarkshire , Matt Taylor and ” Leisure Trust Scott Johnson, Director of Performance Rugby Regional matches at under-16, facilities including, indoor and outdoor = under-18 and under-20 levels were held training, performance gyms, medical and Cornerstone of a new era throughout the season to give identified rehab space, offices and classrooms. Stage 3 27 contracted players players a platform to be selected The facilities have been developed in 11 1 2015/16 for the new Academy structure and partnership with other agencies and players featured+ player capped Stage 2 international age-grade teams. The will provide a focal point and regional in the Guinness for Scotland 16 female players identity for players, while also providing PRO12 & European games also brought back meaningful Chris Dewsnap | Borders & East Lothian competition between the four rugby performance-training environments that Rugby Challenge & Heriot Watt University, regions in Scotland. are vital to accelerated development. Champions Cups In partnership with Borders College, Heriot Watt University, Borders Sport and Stage 2 players selected for the first intake Leisure Trust, Borders Council and Gala 87 44 male players Junior Rugby Council

8 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 9 BT Sport Scottish Rugby Academy inductees 2015 with Sam Hidalgo-Clyne, , and Grant McConell “Training 25 hours a week Sarah Law “They’re giving us

Age: 20 is going to be a shock to Age: 20 everything we need so Position: Winger the system, compared to Position: Scrum-half we can concentrate on Club: Boroughmuir my two club and four gym Club: Murrayfield Wanderers improving all aspects of Honours: Scotland under-18 sessions, but it will be Honours: Scotland Women our game. The flexible Boroughmuir winger Grant McConnell really beneficial. Scotland Women scrum-half Sarah programme will fit around ended the season on a high after Law was selected as a Stage 2 BT Sport my other study and will “Being in a performance scoring a try in the BT Cup final win over Scottish Rugby Academy player. When also complement my environment and training Hawick at BT Murrayfield. Becoming the 20-year-old isn’t studying applied training with Murrayfield together, with the specialist a Stage 3 BT Sport Scottish Rugby maths at Edinburgh University, she will Wanderers. Academy player was the cherry on top coaches and hi-tech be down the road at Napier University for the 20-year-old, who is studying civil equipment, is definitely training with fellow Academy players. “I think the Academy will engineering at Edinburgh University. going to help me work give Scotland Women an towards my dream of opportunity to be better playing for Scotland.” prepared for the games and will enable us to compete at a much higher level. “

10 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 11 Rugby World Cup

The extended squad kicked off their preparations at Font Romeu, a high Scotland altitude training camp in the French

Fans enjoyed watching Scotland score 11 tries during their three viagogo Autumn Tests Pyrenees, before the four-game summer

G

series against , Italy and Ireland. s r

e at home – the most tries in an autumn series for seven years. 94% n i

o g i

t Scotland will face Japan, USA, South 11 penalties L a a 4 out of 5 conversions N From Richie Gray’s fifth minute try Africa and Samoa in the pool stages of i d 6 l against Argentina to ’s the RWC. a w S 43 points B ’ finish of ’s cross-field s R k e i h kick against Tonga at , ck t in g g rin Kilmarnock, crowds were entertained accuracy du from start to finish. Five of the tries were Font Romeu scored in the opening match against Argentina 1850m that saw the hosts post their first victory against the Pumas at home since Within the extended squad there are: 1990. uncapped players The promising and potent display in 9 front of a record crowd for the fixture was also Head Coach Vern Cotter’s first bow at BT Murrayfield. competing for a place at their third Rugby World Cup What followed was another tale of so 6 near and yet so far, and there have Richie Gray scores against Argentina at BT Murrayfield cup / league champions been a few in the 109-year history of this season; Glasgow Warriors, matches between Scotland and New 2015 RBS 6 Nations 26 Gloucester & Saracens Zealand from a home perspective. Support for Scotland reached fever pitch following the viagogo Autumn Tests, with tickets to the Ireland match Scotland Results selling out in record-time, a capacity 65 Scotland 41-31 Argentina

6 89% crowd for the Wales game and a record y

2

capacity at Scotland’s l

tries , a 1 Scotland 16-24 New Zealand attendance for the Italy fixture. six home games t I 8 11 8 in 2014/15 v

Scotland 37-12 Tonga r d Despite showcasing the attacking vigour e c n a France 15-8 Scotland which fans had become accustomed o l scored by Scotland during the r 315,270 t d o to under Cotter, the national team had c Scotland 23-26 Wales viagogo Autumn Tests cr S o s a winless campaign. w n d f tio Became Scotland’s most capped Scotland 19-22 Italy We put in an admirable performance, or RBS 6 Na prop before announcing retirement England 25-13 Scotland but were left lamenting one that got Dougie Fife produced the only try in from international rugby. away in front of an energised crowd of the loss to France in , before we ten points in ten minutes from England Scotland 10-40 Ireland 66,004. suffered a narrow and controversial loss halted Scotland’s progress. to Wales and an agonising late defeat Flashes of promise and thumping hits “The players were rewarded in the autumn for their collective effort to create and Then came the chance to get back to to Italy. winning ways against Tonga at a sold- in front of a full house at BT Murrayfield finish opportunities, scoring 11 tries across the three Test matches. We played some out Rugby Park, where Scotland put in a Captain kicked his men were eclipsed by a clinical Irish side, good attacking rugby in the RBS 6 Nations, but needed to do it for much longer and get strong second-half performance to end into a half-time lead in the Calcutta who were not going to let anything get our mindset into building games, as well as minimising errors” the series with a five-try win. Cup clash at Twickenham, however in the way of securing the title. Vern Cotter, Scotland Head Coach

12 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 13 Scotland Under-20 Scotland under-20 enjoyed their most Scotland 7s successful year by recording their highest ever finish in the Six Nations Scotland 7s finished the HSBC Sevens World Series in seventh place, overtaking their and the World Rugby Under-20 previous highest ranking of ninth. Championship. Under-20 Six Nations Championship In his first term as Head Coach, Calum After notching up three victories from MacRae and his charges competed five, Sean Lineen’s charges finished third. in the top eight for the majority of the Series, having qualified for six The squad recorded their first win over Cup competitions across the nine Wales since 2009 and their greatest tournaments. winning margin in the 45-0 victory They celebrated their highest ever finish over Italy. of fourth in Wellington, before winning the Bowl in Hong Kong. There were also Six Nations Championship Results personal highlights among the squad, including captain Scott Riddell making France 45 v 6 Scotland the London 7s Dream Team for his eye- Scotland U20 Patrick Kelly on the break against Wales Scotland 36 v 34 Wales catching work at the breakdown. Scotland 45 v 0 Italy Scotland Under-18 Colin Gregor became the third highest England 26 v 11 Scotland all-time points scorer in the HSBC Sevens Scotland under-18 started their season World Series, bringing his total to 1345 Scotland 17 v 10 Ireland in a confident manner scoring three Scotland Under-18 Results points. He also became Scotland’s most superb tries against England, before capped sevens player with 58 Sevens crossing the whitewash twice in a England 36 v 27 Scotland World Rugby Under-20 Championship World Series caps, before announcing victory against Ireland Schools. Scotland 21 v 13 Ireland Schools his retirement at the end of the season. The team had a tough start at the championship in June, losing against The side endured a tough campaign Rugby Europe Elite Division James Johnstone had an impressive eventual champions New Zealand and at the Rugby Europe under-18 Elite year and scored at least one try at every France 22 v 10 Scotland running close to Ireland, who they beat Division Championships, failing to tournament, taking his season tally to 22. First Scotland team to beat England record a victory in their three games Scotland 0 v 0 Portugal He was also the Series’ top ball carrier. during the Six Nations. at Twickenham since 1983 going down to hosts France, Portugal, (Portugal win 3-2 on penalties) In their final pool match, Scotland gave then Ireland in the seventh place play- Scotland 12 v 21 Ireland team on the eve of the Emirates Airline Glasgow 7s a scintillating three-try display on off match. their way to achieving their first victory “The team have achieved many of the aims we set out at against Argentina. the start of the year” Calum MacRae, Scotland 7s Head Coach World Rugby Championship Results

This season... Scotland 10 v 68 New Zealand Scotland 20 v 24 Ireland Scotland 29 v 6 Argentina Scotland 21 v 31 Australia 21 Scotland 9 v 17 Ireland 51 players games played donned Scotland progressed to the top eight the jersey play-offs, yet were unable to record any further victories going down to Australia and Ireland. Damien Hoyland made his mark during Scotland Club XV claimed the Dalriada Cup after defeating their Irish counterparts his first season on the Series by scoring 19 79,629 23-18 at Netherdale, Galashiels. The side, coached by Phil Smith of Heriot’s, lost their tries, seven of which were in Wellington. in 9 tournaments including 7 new caps miles travelled second match against England Counties 37-3.

14 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 15 Signing Off

After nine years captaining the Glasgow Warriors, inspirational leader hung up his boots at the end of the season bringing an end to a Warriors remarkable career. Glasgow Warriors became The victory capped an incredible A week later, the sides met again and the first Scottish team season for Gregor Townsend’s charges, the Warriors’ home was rocking when who finished top of the league for the DTH van der Merwe set the place alight to win a major title last first time in the club’s history, securing a on his final appearance in Glasgow season, defeating Munster home play-off in the process. colours at Scotstoun by scoring a try to tie 31-13 to lift the Guinness the scores. Finn Russell banged the ball The home semi-final against Ulster was over the sticks from out wide to secure PRO12 trophy. won in dramatic circumstances, after the Warriors’ place in the final. the Warriors were down 10-6 at half-time but battled back to score four tries in At the final in Belfast, the Warriors “What an incredible the second half. dominated proceedings with Rob Harley, feeling it was to lift the DTH van der Merwe and scoring before the break. Finn Russell trophy in my final game scored the fourth try of the afternoon to before retiring. I’ve been seal the win against Munster. at the club for nine years

Season 2014/15 will undoubtedly go and we’ve been building down in history as the club retained their and building and building Melrose 7s title and also went close to for so long. For it to get qualifying from the European Rugby to the point of winning Champions Cup group stages for the the Guinness PRO12 is first time. just beyond belief.” Tommy Seymour on the run The Warriors were unbeaten at home in The 33-year-old has skippered the club the Guinness PRO12 and Townsend was capacity crowds at Scotstoun most tries DTH to two PRO12 finals, playing more than named PRO12 Coach of the Season. two weeks in a row v Ulster van der Merwe 150 times for the Warriors and winning 10,000 11 On the international front, the Warriors 56 Scotland caps. excelled with Finn Russell, Mark Bennett, increase in Season Ticket biggest win v He received this season’s Guinness Tyrone Holmes, Gordon Reid, Adam Members since 2012/13 PRO12 Nov 2014 PRO12 Chairman’s Award in 89% 54-10 Ashe, and Alex Allan all recognition of his outstanding service winning their first caps, with to the competition. club teams involved in increase in making his first start at BT Murrayfield. matchday activity Business Club Members Kellock will now take up an 108 50% Ahead of the Rugby World Cup, 22 ambassadorial role with Scottish players were named in the training Rugby, as well as assisting the Warriors in Guinness PRO12 Dream Team most points squad including Rory Hughes, Mike development of Glasgow Warriors Peter Horne, Tommy Seymour Peter Horne Cusack and Josh Strauss. 3 99 The main focus of his role will be Next season, new signings , engaging with the rugby and business Game On Programme sessions and Greg Peterson, Grayson Hart, Sam attendees communities and learning more about Nov 14 - June 15 workshops Johnson, Kieran Low, Simone Favaro and 129 35 the commercial aspect of sport, Taqele Naiyaravoro will join the squad. enabling him to stay connected with Warriors Kids Camps kids from coaching is congratulated by his team mates after scoring to help secure the Warriors. Oct 2014 & April 2015 P1 - U18 hours Glasgow Warriors a place in the 2014/15 Guinness PRO12 Final 370 52

16 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 17 Rising Talent

Sam Hidalgo-Clyne emerged as a Edinburgh potent threat this season and was voted the Guinness PRO12 Young Rugby Player of the Year. Edinburgh Rugby made history when they became the first Scottish team to reach a European cup final with a squad featuring a balance of youth and experience.

After notching up seven wins on Earlier in the season, Alan Solomons’ side This was a highlight in what was a mixed their journey to Twickenham Stoop, proudly lifted the for the first Guinness PRO12 season that started with their dream of silverware ended with time in six years after a fantastic team an away win over Munster and ended Gloucester clinching the Challenge Cup. performance, in front of a record crowd with two losses that put them out of at BT Murrayfield, against Glasgow contention of a top six finish. The club kicked off their European Warriors. campaign with wins over Bordeaux- Despite finishing the PRO12 with ten Bègles and Lyon before back-to-back more points than the previous season, The 21-year-old, who graduated successes over London Welsh. Their Edinburgh concluded the season in through the Academy system, was defeat against Lyon was quickly 15,810 SPECTATORS eighth – the same ranking as 2013/14. at BT Murrayfield saw Edinburgh win also honoured closer to home by his forgotten with victories over Bordeaux the 1872 Cup - a record crowd for an This placing means they will return to former Cub pack in Edinburgh, who and , followed by a thrilling Edinburgh game the Challenge Cup hoping to go one voted him their local hero of the year. semi-final win over to book their better under the continued leadership place in the final. Taking on kicking duties midway of Solomons, who committed to through the season, the scrum-half’s another year at the helm to build on the accuracy with the boot, in dreadful momentum. conditions, ensured Edinburgh’s The capital club will welcome former away win over Connacht in January. Edinburgh and Scotland internationalist, He backed this up with a man- , to the coaching team of-the-match performance that from the Scotland set-up following saw him take the club’s European Rugby World Cup 2015. points record with two tries, three Scotland under-20 internationalists Blair conversions and four penalties in the Kinghorn and Jack Cosgrove will also win over Bordeaux-Bègles at be added to the player ranks alongside BT Murrayfield. Nasi Manu and Will Helu. A further man-of-the-match performance in the quarter-final win Ben Toolis and congratulate Stuart McInally after he scored a try in the “This past season has seen European Challenge Cup semi-final win against Dragons at BT Murrayfield away against London Irish led to an outstanding performance in the semi- us make good progress. We player community final home win over Dragons, where became the first Scottish Ben Toolis won most lineouts in 1,100 visits during 2014/15 54 the European Challenge Cup he scored 25 points. team to make a European Having been brought in to the final. We won the 1872 extended squad for the 2014 viagogo Cup for the first time in six youngsters attended people met players at 416 Young Gunners Camps 9,511 organised events Autumn Tests, he made his Scotland years. Next season is a case debut against France in the RBS 6 of onwards and upwards” Nations and was included in the children were involved in WP Nel named at tighthead in the Alan Solomons, Edinburgh Head Coach extended Rugby World Cup squad. pre-match activities Guinness PRO12 Dream Team Edinburgh Rugby guard of honour from Duns RFC and Peebles RFC 2,379

18 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 19 Scotland Women New coach for A number of young players made their Scotland Women debut for Scotland Women this season, Women & Girls Former Scotland lock, Shade Munro will which began with a four-day training bring 18 years’ coaching experience camp in August. More women and girls are to his role as Scotland Women Head playing rugby in Scotland A further four camps, including a Coach. with new teams springing win against an Irish Exiles side at BT up this season. Murrayfield, were held alongside weekly skills sessions. Howe of Fife, Greenock and Annan have capitalised on the surge of interest and Determined to build on their strong have entered teams to play in national performance against Italy in the women’s leagues for the first time. autumn, Scotland Women kicked off their 2015 Six Nations campaign against This means there will be 22 clubs last year’s winners France. competing across BT Women’s Premier League, BT National League 1 and BT Despite losing all Six Nations matches, National League 2 next season. the side showed improvements with number 8 Jade Konkel scoring against Across the country, the number of female Munro moved from Glasgow Hawks Italy and Eilidh Sinclair against England. club and school teams rose to 158 this Women & to Glasgow Warriors as Assistant season, compared to 130 in 2013/14, Girls Teams Coach in 2002 and was part of the and 42 female referees completed their Scotland Women Results Scotland coaching set-up in 2006. UKCC Level 1 qualification. He was also Head Coach of Scotland Six Nations On the national front, Glasgow Warriors A in 2013 when they beat England for France 42 v Scotland 0 Assistant Coach, Shade Munro, was the first time south of the border. appointed Head Coach of Scotland Scotland 3 v Wales 39 Women. 18% Scotland 8 v Italy 31 “I’ve got a lot of experience in Taking up the role this summer, Munro is England 42 v Scotland 13 Oban HS take on Ayr in the Brewin Dolphin Girls’ U15 Bowl final charged with progressing the women’s Scotland 3 v Ireland 73 professional rugby and side in line with the forthcoming national Chloe Rollie, Scotland Women I’m keen to bring that to strategy for women and girls’ rugby, which Greenock Wanderers “My dad has been the women’s game, to is being developed by Head of Women & Scotland Scotland Women 7s Ladies Team Launched coaching at the club for link the two and move Girls’ Rugby, Sheila Begbie MBE. Women Under-20 After two warm-up events in Amsterdam the team on. I’m really What began as a small group of years and I’ve always had Rugby for women is one of the fastest and London, the team competed in two looking forward to the young women keen to learn how to an interest in playing and The under-20 programme aims to identify, growing team sports in the world and Rugby Europe Grand Prix tournaments in play rugby has turned into a fully- I just wondered if there develop and prepare young players for challenge. more needs to be done to close the gap Russia and France. fledged competitive side. the Scotland Women senior squad. between Scotland and other nations. were any local girls who I’ll look at all aspects New players, including Scotland Women Caitlyn Haldane rallied the players wanted to give it a go. An open trials day at BT Murrayfield of the women’s game – The inclusion of 16 young women in the caps Jade Konkel and Karen Dunbar and launched the weekly training attracted nearly 50 girls from which a first intake of the new BT Sport Scottish A number of the girls and under-20 cap Caitlin Harvey – got from the club coaches sessions with the support of local squad was selected for the season. Rugby Academy is a step towards off to an encouraging start in Russia, to the strength and Rugby Development Officer, Brendan from the team have been improving performance. This will have a The Scots won their first match 32-7 where a first-ever win over Ukraine at this conditioners to the team McGroarty. She also used social media involved in coaching positive impact on all levels of the game against the RAF at Meggetland in level and two wins over Portugal saw to spread the word. and helping Brendan itself – and work in as players will benefit from bespoke February, with five of the six tries scored them lift the Bowl trophy and take ninth conjunction with Sheila, The team now has 30 registered encourage under-15 girls by winger Rhona Lloyd. In the second position on the table. strength, conditioning, medical and to bring a different edge playing facilities and expertise. players and will compete in BT to start. The aim is to fixture, away against Northumbria A tough draw in France, with only one Women’s National League 2 next have an under-18s girls University, they kept their 100% record to the national team Scottish Rugby is also planning to bid for victory over Italy, saw the Scots finish the season after remaining undefeated with a 34-0 win. programme.” the Women’s Rugby World Cup 2021 and team as well.” Caitlyn Haldane season 11th, resulting in relegation to in the National Development League Shade Munro ensuring Scotland Women qualify for the Rugby Europe Division A next season. this year. tournament is a priority.

20 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 21 Lloyd Linton Caledonia 159 The up-and-coming referee swapped Referee Referees his stethoscope for a whistle when he Course graduated from Aberdeen University Attendees While our elite referees performed on the global stage, hundreds of volunteers picked last summer. up the whistle week in, week out. Edinburgh Since then, the qualified doctor has 111 been appointed to international Scottish Rugby appreciates the time, duty, including two Rugby Europe knowledge and contribution all referees 136 internationals – Poland v Ukraine and West 437 make to the game - without you Mike Adamson keeps Spain v Russia – and the Americas matches simply wouldn’t go ahead. improving as a Rugby Championship in Canada. This season there were 2,400 qualified referee in the HSBC match officials across the four regions. Sevens World Series and officiated in We also held courses across the country, Borders which were attended by over 400 all nine tournaments, referees. including the Cup 31

While we continue to focus on finals in Dubai educating referees to a high standard, and London. we have also implemented a revised There are high structure to our department under expectations Refereering Commissioner Tappe Henning. to see him selected for next year’s The regional development positions were changed to three national roles Olympic Games. and a technical and logistical support He also took charge of four role for districts and societies was Mike Adamson at the Emirates Airline Glasgow 7s matches at the World Rugby U20 added. Championship 2015 in Italy and was assistant referee for three. He Scottish Rugby’s four contracted was appointed assistant referee for referees for season 2014/15 - Lloyd the final, which showed the high Linton, Mike Adamson, Sam Grove- regard for his performances in the White and Andrew McMenemy tournament.

were under the guidance of former

2 s

8 13%

international referee Dave Pearson. n 2 increase in qualified Lloyd began refereeing in 2008 o

i n g and has travelled to all corners of e referees this season All have been appointed to various w e r Scotland while gradually moving up l high profile matches and tournaments y e h q t the leagues and gaining experience this season alongside our other elite u 2459 s a s li o on the international stage. referees. fi r e ac d l s evel eree Neil Patterson, Lloyd Linton and Andrew 1 ref “I’m hoping next McMenemy were involved in the season will bring more also served as an Olympic Regional European Rugby Champions Cup and Alex Pratt also represented Scotland chances to officiate Qualifying tournament for Rio 2016. as an assistant referee at the Women’s Challenge Cup competitions. Guinness PRO12 Young and energetic teams of Scottish Rugby World Cup in France and Sam Grove-White was appointed to match officials were also appointed officiated in the final. She topped off a matches, European the Rugby Europe U18 tournament in to the Emirates Airline Glasgow 7s, successful season by collecting Scottish and international France, while Mike Adamson, Kevin including 18-year-old Ross Mabon, Rugby’s Referee of the Season award. competitions.” White and Alex Pratt officiated at the showcasing to World Rugby the face Lloyd Linton Mhairi Hay, Assistant Referee in the Scotland Women v Ireland Women Six Nations Rugby Europe Sevens tournament that and future of Scottish referees. match at Broadwood Stadium

22 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 23 Coaching Conferences Coaching We welcomed 374 coaches and teachers to our coaching conferences in Edinburgh and Glasgow.

National U18 Coaches’ National Coaches’ Pathways Conference Conference This season has seen the launch of a new UKCC Level 4 coaching qualification approved Teacher Edinburgh Rugby Glasgow Warriors Conference Coaching Day Coaching Day by sportscoachUK, and developed in conjunction with Edinburgh Napier University.

The aim of the course is to accelerate Sharing the the development of Scotland’s top coaches, providing them with the skills Knowledge and knowledge required to coach at Over 130 coaches converged on the top of the game, and become BT Murrayfield in May to learn from leaders in their field. Scotland’s rugby leaders.

We are grateful for the financial support The day was a mix of presentations of sportscotland to enable us to deliver on coaching philosophies and styles, UKCC courses at a subsidised cost and supported by practical workshops to deliver our workshop programme from coaches in the professional free of charge to coaches working in ranks of the sport. our clubs and schools. Scotland Head Coach Vern Cotter focused on the breakdown area, and Glasgow Warriors Assistant ose on new th co of u Coach Kenny Murray spoke about his 2 rs 7 e 1 s journey from the grassroots game to the professional stage.

The Long Term Player Development 53% Stage Four and Five Coaching increase in coaches Resource, which focuses on qualifying this season developing and optimising performance in players aged 17 and 964 above, was also launched at the conference.

“We’ve got a lot of Scotland and Glasgow Warriors defence coach Matt Taylor, at the National Edinburgh Rugby kids camp at BT Murrayfield expertise in our game Coaches’ Conference at BT Murrayfield and we want to filter We also launched the new World Rugby first time with more courses due to be further 24 clubs currently undertaking their knowledge down. UKCC UKCC UKCC Strength & Conditioning Level 1 course, rolled out next season. the accreditation process. The feedback is very, very Level Level Level which is managed by our new Strength 1 2 3 Our Positive Coaching Scotland We achieved our target of increasing and Conditioning Coach Development positive and people just Programme, in conjunction with the Bill the number of continuous professional Officer, Peter Jericevich. To date, 11 want more of it which is McLaren Foundation – which aims to development (CPD) workshops and courses have been delivered, with 177 something we’re always develop young rugby players through conferences offered to club and school coaches attending. promoting a player-centred philosophy coaches this season. Approximately 4200 trying to do.” The World Rugby First Aid In Rugby Level – has enjoyed a successful year with 30 coaches attended at least one session - Neil Graham, Scottish Rugby Coach 1 qualification was also delivered for the clubs achieving accreditation and a a 40% increase on the previous season. Development Manager 30% 5% 113%

24 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 25 Student & Adult Rugby Orkney RFC Result highlights There has been an increasing trend of Orkney topped an impressive year by The season unfulfilled matches in the lower reserve securing promotion into the national kicked off with Clubs leagues over recent seasons. To address leagues by winning the BT Caledonia the inaugural BT this, a Reserve Team Rugby Working Supporting clubs to develop and plan for the future is a Regional League Division 1 title. Scottish Rugby Group has been set up by the Scottish key focus for Scottish Rugby as it invests more money Charity Shield Rugby Council to investigate the reasons than ever into the domestic game. match between for this and provide recommendations the 2013/14 on how to reduce this trend. The first round of funding from the £1.6 the facility related issues highlighted by BT Premiership and BT Cup winners. To assist with this issue and understand million Club Sustainability Fund was about 60 clubs, who have used the Club Heriot’s defeated Melrose 36 - 28 more about the motivations of adult shared by 14 clubs, who received just Diagnostic Tool since it was launched in to lift the silverware, while money male players an extensive player survey over £400,000, to improve club facilities January. The tool, facilitated by the new was raised for Breast Cancer Care. or employ Business Development Club Services Managers, helps clubs was undertaken in conjunction with Napier University. Selkirk were the dominant team Officers to generate more income. identify their strengths and weaknesses, This result, and their on-going work compare themselves with other clubs in BT National League Division 1 with This season’s successful clubs also to grow the game on the island, An action plan to improve the transition and generate action and business an outstanding season that saw the secured an additional £600,000 of saw them scoop the BT Club of the of players from school and youth teams plans to help them meet their future club win all 22 league matches. sportscotland National Lottery funding Season Award. Hooker, Scott Rendall, into adult rugby is also being Adult aspirations. also won the BT Caledonia Regional implemented. Musselburgh won an exciting towards their capital projects, through Rugby the one-stop application process. Scottish Rugby also provided support for Leagues Player of the Season. BT title race and clubs to capitalise on Rugby World Cup will be joined in National 1 by Howe A further 41 rugby clubs received up “We pull in players from 2015, including sponsorship and events/ of Fife, finally rewarded for regularly to £2000 each from the Fast-Track hospitality workshops. some of the 17 islands, 20% challenging for promotion over the growth in strand of the Club Sustainability Fund so this is very much the student game last five seasons. for maintenance and improvement The RWC Trophy Tour gave clubs another club’s award. It’s for projects. opportunity to host events during the STUDENT Carnoustie HSFP were five-day tour of the Webb Ellis Cup across everybody, the coaches, RUGBY promoted to Caledonia 1 as winners The Club Sustainability Fund has also Murrayfield Wanderers’ Rhona Lloyd the length and breadth of Scotland. players, volunteers and of BT Caledonia 2 Midlands, while provided a possible solution to many of celebrates winning the Sarah Beaney Cup parents” runners up RAF Lossiemouth were Neil McCartney, Orkney Chairman The student game, which promoted from BT Caledonia 2 North. Youth Rugby Youth offers an important stepping- All this has been achieved against Berwick secured their second stone between youth and adult club the backdrop of the normal travel successive promotion as champions rugby, has experienced 20% growth. arrangements for away trips taking of BT East League Division 1, as did This includes five new teams and over 24 hours. St. Boswells in winning BT East others being reactivated through the Division 2. This dedication was also evident in introduction of an integrated Student the club’s drive to see more girls and Rugby Series of events and fixtures. Murrayfield Wanderers boys playing rugby. proved the dominant team in the women’s game with a league and Development Officer Tom Hughes, Cup double. They lost one match Modern Apprentice Mark Sinclair in securing the BT Women’s Premier and volunteers deliver rugby to every League title and they clinched the school on Orkney, which requires air Sarah Beaney Cup with a late try and sea travel to the out-lying islands. over Hillhead Jordanhill to win 25 - 22.

Many of the senior players have Top four play-offs were introduced come through the youth section and this season to determine the BT girls’ rugby continues to grow, with Premiership champions. the amalgamated Orkney/Caithness girls under-15 and under-16 teams Heriot’s won the grand final with reaching this season’s Brewin Dolphin a dramatic try in the last period of University of Glasgow v University of semi-finals. play to narrowly beat Melrose 22 - 20. Boroughmuir’s Magnus Bradbury scores a try in the BT Cup Final Edinburgh

26 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 27 Schools & Youth 1,137 Rugby has the potential to make a significant impact on young people’s lives. It games played 4,788 teaches physical, mental and emotional life-skills that endure and contribute to the 548 in Clubs development of self-reliance and resilience. teenagers qualified by school and youth through the Youth Coaching Course to deliver in Expanding the school and youth game at S1-S3 age groups take part in up club teams this season Primary School and early years of secondary school £833k is integral to increasing player numbers to five sessions per week with a focus supported by at all levels. The programmes we run on developing core skills, physical Jed Thistle focus on encouraging more children, competence and establishing new from all walks of life, to take up rugby rugby teams. Jed Thistle were rewarded for their hard work with a haul of national and regional trophies, and continue to play through their including the under-18 National Youth League Cup and under-18 Kings of the Sevens Series. £ A large part of the year has also been teenage years and beyond. spent on revising our youth and school This year, Scottish Rugby has continued playing structures to ensure there are a Club Development to support schools and clubs in their meaningful amount of games at every

78into Officer partnerships partnerships with Club Development age group and suitable training sessions. invested Officers and Community Coaches. with clubs and local authorities We have engaged with schools, clubs We have expanded our CashBack and local authorities across the country Schools of Rugby to 30, where pupils to develop a new playing structure for schools and clubs next season. Taking this time to discuss and debate the 13,563 issues will hopefully create an increased in Primary focus on the long-term development of Schools players in the clubs and school structure.

Our aim is to translate more playing time and raising the standard of play into higher retention rates when players graduate into the adult game.

Players will also have better skill sets and a competitive maturity that allows them to continue to participate and excel as Head Coach Garry Goodfellow reflects on their season and the successful culture of the club: they progress through the game. “We teach our players discipline and to respect officials and the street rugby sessions taking rugby beyond its traditional heart lands opposition. Players that train regularly are rewarded with game time and we encourage players and their families to support the club’s fundraising events.”

“We didn’t have a very physical side this year so we worked hard on fitness, skills, set piece and offloading in the tackle, which worked very well for us. We are a close-knit team with all the rugby sessions delivered across Scotland by Club Development Officers. boys staying in the town or living in the surrounding countryside. We have a very small number of boys to pick from so this makes the success that bit more special.

“Jedburgh Grammar is now a School of Rugby so that has increased interest. We also work closely with Jed Forest to ensure our older players continue to play when they outgrow us. I was Rugby Sessions 450 delighted to win Daily Record Youth Coach of the Season, but this award is for all the players and the coaches - Calum Brown, Douglas Moffat and Gary Hill - and also for the endless work 16,327 street rugby sessions taking rugby in Secondary beyond its traditional heart lands our president Colin Yourston does behind the scenes.” Schools

George Watson’s College and Merchiston Castle School play off for the Brewin 34, 678 Dolphin Under-18 Cup at BT Murrayfield

28 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 29 Dominic McKay “With every pound from ticket sales going back into the game, it was encouraging to see supporters filling BT Murrayfield and Scotstoun this season.” Commercial Report 141% From sell-out crowds at BT Murrayfield to Glasgow Warriors increase over 3 seasons lifting the Guinness PRO12 trophy, Scottish Rugby has enjoyed a record-breaking season both on and off the pitch.

S c 10,212 s o r 43% 89% t 2014/15 e increase over 2 seasons s increase over 3 seasons la a n h d rc Sea Pu son Pass E G d e s c Glasgow 7s 18,880 l r i a n n s e b a g b 74,591 3,435 u d o m rg 2014/15 n w 2014/15 e h te M The RBS 6 Nations series was t W t Ru a ar e gb tch rio ick y h ma rs S on T the most successful yet in ome

Edinburgh Rugby e s

74,951 a terms of ticket sales. There has been rapid growth at Edinburgh Rugby have a loyal Scotstoun with 3,435 season passes supporter base who enjoyed sold this season and two matches seeing them reach the final of the Glasgow Warriors 103,657 selling out largely due to the on-field European Challenge Cup. success of Glasgow Warriors. Sold out in Capacity Largest record time Crowd crowd

Macron have done an excellent job designing Scotland’s Rugby World Cup kit and the positive response from fans has been fantastic. Initial reports from retailers are that sales have been well above expectations.

Our family day at BT Murrayfield to Announcement of BT as Scotland and age-grades shirt sponsor with Brendan Dick, launch the strip was also a success with Scotland 315,270 Supporters through the gates at BT Murrayfield, and Rugby Park, Kilmarnock. Managing Director, BT Scotland approximately 1,500 fans coming to watch 512, 7 5 8 We are one year into our partnership Royal Bank of Scotland continues to be The appointment of Pitch International Scotland train and meet the players. with BT and our rugby community has an important sponsor and it was great LLP as our international media rights “We are focused on already started to benefit with the roll- to see a record 150 clubs taking part in partner will see Scotland’s summer and delivering great events for out of the £1.6 million Club Sustainability the Royal Bank of Scotland RugbyForce autumn home Test matches broadcast Fund and the launch of our BT Sport weekend to gear up for the season. in more countries, including substantial our supporters and we have Scottish Rugby Academy. coverage in the Middle East and North some exciting events lined We were delighted to add AG Barr America. Income generated from this up for the Rugby World Cup, We completed the final stage of our as our soft drink partner, Vitality as our agreement shows very strong growth partnership by announcing BT as shirt official healthcare partner and Gullivers including creating a home- over previous deals. sponsor for our national and age-grade Sports Travel as our supporter travel from-home advantage teams next season, following the BT partner to our existing sponsors, including Expanding our commercial family through our #tartantakeover Sport sponsorship of Edinburgh Rugby blue-chip partners Dove Men+Care, means we can continue to increase our campaign.” Dominic McKay, and Glasgow Warriors’ match jerseys Caledonia Best and Macron. investment into the grassroots game. Director of Commercial Operations, this season. Communications & Public Affairs Jonny Gray, Ross Ford, Richie Gray and Stuart Hogg launch Scotland’s RWC kit.

30 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 31 Corporate Social Responsibility Working with Government Scottish Rugby has supported many causes this season both at home and abroad. Scottish Rugby continues to move physical activity, and in particular rugby, higher Some were borne from tragic circumstances, while others enhanced physical activity up the political agenda. We work with parties across the political spectrum to among young people through local rugby clubs. demonstrate the value our sport can bring to communities, the nation and Scots around the globe. We have provided extraneous kit Closer to home, we have had the We formed an official partnership with to the Jungle Crows junior rugby privilege of welcoming terminally ill Trust Rugby International, Scotland’s Our annual Parliamentary Reception During Scottish Apprentice Week, we The Scottish Government’s CashBack club in Calcutta – delivered during children and adults plus their families only unified rugby club, enabling it took place at Holyrood in January hosted the Cabinet Secretary for Fair for Communities has committed over £6 a Commonwealth Parliamentary behind the scenes on international to expand from its Ayrshire roots to a when our main themes were equality Works, Skills and Training, Roseanna million between 2008 and 2017. The funds Association delegation visit to India. match days. We also provided 1,000 branch in Edinburgh. They will represent of opportunity and closing the gender Cunningham MSP at Currie RFC, from the seized proceeds of crime support Tickets for Troops to the Scotland v Italy Scotland in the first unified rugby world gap. Vern Cotter and Head of Women where she met our modern apprentice a range of Scottish Rugby programmes Edinburgh Rugby and Scotland trio, Tim match at BT Murrayfield. championship in Bradford this summer. and Girls’ Rugby Sheila Begbie answered Callum Ramm, 18, who led a rugby including school and club sessions, youth Visser, and , Unified rugby enables players with a MSPs’ questions, while Scotland Women’s festival for around 200 children from coaching courses, Street Rugby and took part in the Big Dinner, an initiative disability to train and play in the same vice-captain Lisa Martin gave an address Primary 6 and 7 classes in the Currie Schools of Rugby. Additional funding has inspired by Edinburgh lawyer and team as non-disabled players. on what it means to play for Scotland. and Balerno area. also been invested into improving rugby amputee Olivia Giles. Her charity 500 club facilities across Scotland. Miles supports those in need of artificial limbs in Malawi and Zambia. £6M committed by £

Scotland’s new Minister for Sport, Health Scottish Rugby has engaged with East Six Parliamentary motions were passed Improvement and Mental Health, Jamie Ayrshire Council, which has been an this year. Brothers Richie and Jonny Gray Hepburn MSP, was Scottish Rugby’s guest enthusiastic supporter of our Schools were congratulated for playing their at the Daily Record Festival of Rugby of Rugby initiative, and won additional first Scotland game together against during the Emirates Airline Glasgow 7s. funding to double the Schools of Argentina and a motion welcomed He also attended the official opening Rugby in the area to four over the the unveiling of the first BT Sport Scottish G4S has forged close links to Game of the new artificial pitch at Currie RFC, next three years. Rugby Academy in Caledonia. On, which is funded by Wooden Spoon funded by Cashback for Communities. and supported by Scottish Rugby. The programme helps young people develop life skills through rugby. Since 2013, the scheme has worked with over 40 young people and seen many secure employment, modern apprenticeships, college courses and recruitment to the armed services.

Support also continued for our core charities, which have strong links to the rugby family;

Hearts & Balls HELPING RUGBY HELP ITS OWN

32 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 33 Facebook

Social Media After launching 18 months ago, our Scottish Rugby Facebook page has solidified its place as our largest social media touch point with over 120,000 fans wanting to interact with news and Scottish Rugby fans can photos from within the Scotland camp.

access all the latest news New features have included a Q&A and activity from our session with Scotland and Glasgow international and pro sides Warriors’ flanker Rob Harley and more all the way down to the competition formats. grassroots game through Facebook Likes** more channels than ever Scottish Rugby 124,321 before. Edinburgh Rugby 18,712 Engagement via our social media Glasgow Warriors 32,424 channels continues to increase with Facebook remaining our most popular platform. scottishrugby.org YouTube Over on Twitter, we have continued to scottishrugby.org is our central online Scottish Rugby TV covers everything gain followers and @Scotlandteam now source of news and information about from interviews, insights, highlights and has over 100K followers. everything that is happening within rugby match coverage across all levels of in Scotland. The website encompasses rugby in Scotland. Games, including fixtures and results from the domestic game the BT Cup final and BT Premiership final, through to full match reports and videos were shown live on the channel. from the Scotland international team. We also streamed Heriot’s historic 125th We have utilised Periscope to live stream anniversary match vs Barbarians, which Instagram games, post-match interviews and the Page Site Unique twitter resulted in over 13,000 views. first round of the BT Cup draw. Views* Visits* Users* Our Instagram accounts offer fans a The @scotlandteam remains one of our Our Rugby World Cup kit reveal video is highly visual look behind the scenes of most popular social media avenues We have also embraced Vine to create our most popular yet and has had over Scottish Rugby, Edinburgh Rugby and with fans who want to find out the latest six-second looping videos to give fans a 39K views and counting. Glasgow Warriors news as it happens. Scotland fixtures are behind the scenes look at the Scotland 4% 11% 11% often live-tweeted giving fans another team’s training and match-preparation. to 11.1m to 3.5m to 1.4m 2,101,634 minutes of viewing time have The Scottish Rugby account has been clocked up on the main Scottish way of following the action. *In the year ending June 30 2015. surpassed 10K followers and over Rugby YouTube channel since July 1 11,800 photos have been uploaded by Our #AsOne and #BackingBlue 2014. This is the equivalent of four years supporters using #backingblue. hashtags have been a success as fans and these supporters are accessing our # thescotlandteam.com was launched utilise them to categorize tweets about A content everywhere from Dingwall to #BA S as a central hub for Scotland’s Rugby the Scotland team. We also launched O Dominica. the #tartantakeover campaign to CK World Cup campaign. N foster a home-from-home advantage in I It kicked off with the Trophy Tour in June N E England this autumn for the RWC. G and will follow the squad’s preparations, B including the summer series, right through Youtube** Mins Views Members Instagram Followers** twitter Followers** L to the tournament itself. It was designed SR TV 4,789,821 1,650,569 5,606 Scotland 10,300 @Scotlandteam 101.3K U to seamlessly work across all devices

E from smartphones and tablets to desktop ER TV 219,198 188,828 864 Edinburgh Rugby 3,336 @EdinburghRugby 26.8K computers and will allow fans to remain GW TV 311,895 789,918 2,031 Glasgow Warriors 8,500 @GlasgowWarriors 34.2K close to the action whether attending the game, at home or at their local clubs. **Figures as of 17 July 2015.

34 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 35 Club Results Brewin Dolphin Schools Results Health & Safety BT Cup Boroughmuir U18 Cup George Watson’s College Focus on H&S Improved communications First Aid Response BT Shield St.Boswells U16 Cup Merchiston Castle School Over 130 staff attended briefing sessions The Corporate H&S Committee On non-match days we have 12 to raise awareness of the roles and has been restructured to improve qualified first-aiders on site. We also BT Bowl Alloa U18 Shield Glenalmond College responsibilities for health and safety communication, consultation and have three defibrillators strategically Sarah Beaney Cup Murrayfield Wanderers U18 Plate Earlston High School throughout the business. planning for health and safety located around BT Murrayfield and all throughout the business. New local first-aiders have received training to BT Women’s Plate Stewartry U16 Shield Stewart’s Melville College The session also gave staff an groups have been established to ensure a quick response to a cardiac opportunity to talk openly about their BT Women’s Bowl Watsonians U16 Plate Hawick High School promote discussion at a grassroots level arrest suffered on site. perception of health and safety within whilst identifying and reviewing key risks BT Premiership Heriot’s Girls U18 Cup Murrayfield Wanderers Scottish Rugby. This information will be Event Safety within each department. used to help shape the priorities for the We welcomed nearly 1,000 wheelchair BT National Division 1 Selkirk Girls U18 Shield Caithness forthcoming year. First Aid in Rugby users to our international rugby fixtures BT National Division 2 Musselburgh Girls U18 Bowl Community School of Auchterarder The new World Rugby First Aid in Rugby during the season. All fixtures were Better Disabled Facilities Level 1 course was launched this season delivered safely with no significant BT National Division 3 Lasswade Girls U15 Cup Biggar The 100th Changing Places Toilet in and delivered to 148 people. public safety issues or disorder. Scotland was opened at BT Murrayfield BT Women’s Premier League Murrayfield Wanderers Girls U15 Shield Hillhead Jordanhill in December 2014. It includes a height RugbyReady Flu Vaccines BT Women’s National Division 1 Cartha Queens Park Girls U15 Bowl Oban High School adjustable changing bench and hoist, This mandatory, practical course was All the professional players and more than and will ensure that we can welcome completed by 3,434 coaches, teachers 80 Scottish Rugby staff received the flu BT Women’s National Division 2 Glasgow University all visitors and spectators, regardless of and referees this season. vaccination in October to ensure business BT Caledonia League 1 Orkney their disability and personal needs, to continuity during the winter rugby season. events held at the stadium. BT Caledonia 2 Midlands Carnoustie HSFP

BT Caledonia 2 North Aberdeenshire 2nd XV “If in doubt, sit them out” BT Caledonia 3 Midlands Kirkcaldy 2nd XV Club Awards of the Season BT Caledonia 3 Midlands East Arbroath Scottish Rugby was a driving force “The launch of national guidelines for BT Club Orkney behind new cross-sport guidelines on the recognition and management of BT Caledonia 3 Midlands West Stirling County 3XV BT Women’s Club Murrayfield Wanderers concussion, which was developed by concussion across all sports in Scotland BT Caledonia 3 North Deeside leading experts. marks a new standard in collaborative Caledonia Best Coach Phil Smith, Heriot’s BT Caledonia 4 Midlands Stobswell care, and one which I hope others will Scotland team doctor and Scottish Daily Record Youth Coach Garry Goodfellow, Jed Thistle copy. BT Caledonia 4 North Highland 2nd XV Rugby’s Chief Medical Officer Dr Referee Alex Pratt James Robson backed the launch of “This is building on work we’ve done BT West Division 1 GHK Spirit of Rugby Award Jim and Mary Inglis, Selkirk the Scottish Government leaflet this at Scottish Rugby, including our ‘Are BT West Division 2 Oban Lorne season advising coaches, teachers you ready to play rugby’ programme, BT Volunteer Lee Anne Steel, Livingston BT West Division 3 Cumnock and parents on how to spot the signs of which teaches good technique and Frank Coutts Memorial Try Jason Hill, Heriot’s concussion and what action to take. risk management. It also teaches BT West Division 4 Moffat Player of the season awards participants that sport is good for you The publication underlines the thinking, BT East Regional Division 1 Berwick and there are possible risks, but if BT Premiership Jason Hill, Heriot’s ‘If in doubt, sit them out’ and is based you’re careful then you can enjoy a BT East Regional Division 2 St.Boswells on World Rugby’s clear grassroots BT National Leagues Division 1 Nick McCashin, Stew-Mel FP healthy lifestyle.” Dr James Robson BT East Regional Division 3 Ross High guidance on concussion. BT National League Division 2 Chris Mason, Howe of Fife Dr Robson also encouraged former Youth Results BT National League Division 3 Douglas Hearn, Lasswade “Scottish Rugby has, Scotland rugby players to participate for many years, been in a groundbreaking study by University National U18 Youth Cup Jed Thistle BT Caledonia Divisions Scott Rendall, Orkney of Glasgow researchers on the effects National U16 Youth Cup Ayr & Stirling County BT East Divisions Keir Hamilton, RDVC working with like-minded of concussion and whether there is institutions and experts to evidence that head injuries in rugby National U18 Bowl Melrose Wasps BT West Divisions Dan Hull, Oban Lorne put player welfare to the have any long-term health effects. National U16 Bowl Biggar BT Women’s Premier League Emma Bree, Melrose forefront of our sport. Scottish Rugby U18 League Currie BT Women’s National Division 1 Alison Henderson, Stewartry

Scottish Rugby U16 League Currie BT Women’s National Division 2 Victoria Harper, Grangemouth

36 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 37 Strategic Report The Directors present their Strategic Report for the year ended 31 May 2015.

Principal Activities made during the year for the new International pitch. Interest charges fell to £0.6m, compared with £0.7m in the period to 31 The principal activity of the Scottish is to promote May 2014. the game of Rugby throughout Scotland, using its wholly owned subsidiary plc for all trading activities. The Directors continue to monitor borrowing levels, income and expenditure against budget on a monthly basis. They Business Review also monitor other key business issues including Professional The Union continues to work towards the objectives outlined and National Team performance which are fundamental in its Policy Initiatives, specifically in the areas of academies, to the Union’s strategy of growing the game within a stable coaching, the women’s game, schools, clubs, and refereeing. commercial environment. The implementation of these initiatives has continued in the On pages 46 to 60, the Directors present their report and audited course of the year. consolidated Financial Statements for the year ended 31 May The Union has achieved a £24k surplus for the year (period 2015. The Financial Statements comprise the consolidated ended 31 May 2014: surplus of £0.9m). Turnover was £0.5m financial statements of the Union and its subsidiary. higher than in the period to 31 May 2014, with additional Financial Risk Management sponsorship income from the BT agreement and higher ticket revenues from three home Six Nations matches compared The risk management framework of the Union is well established with two in the prior period being offset by reduced broadcast with the ongoing identification, evaluation and status of income from Six Nations and the effects of the depreciating business risks being presented formally to the Audit Committee, euro. Other income was £0.1m lower than in the period ended Scottish Rugby Board and Council, periodically. 31 May 2014, with various offsetting factors affecting this. Financial Instruments Increased sponsorship from BT is partially offset by there being no income from the British & Irish Lions Tour this year, a 12 month The Union uses interest rate swaps to reduce its exposure to period against a 13 month period last year, and other smaller interest rate movements. Details of this are noted in the changes in incomes relating to grants and other income. Accounting Policies and in Note 8 to the Financial Statements. The Union also uses forward sale currency contracts to reduce Within the expenditure categories, there are the effects of its exposure to exchange rate movements. Details of this are returning to a 12 month period from the 13 month period in Gregor Townsend and Vice-President Edward A. Crozier noted in the Accounting Policies and in Note 7 to the Financial 2013/14, together with increases in investment in a number of BT Academies. Commercial and Operational costs increased Statements. Financial instruments are not used for speculative areas of the game. Club Support and Development shows from £10.1m to £10.9m reflecting the increased focus on purposes. a 23% increase compared with the prior period, which itself generating income, together with continuing higher investment showed a 16% increase compared with 2012/13. This year, the in the maintenance of BT . Similarly, there increase relates mainly to the funding available from the new were a number of additional events in 2014/15 compared with By order of the Board Club Sustainability Fund, made possible through the BT deal. 2013/14 including the One Direction concert, and an additional International and Professional Rugby, which represents the 6 Nations match, with associated costs. Depreciation fell to Union’s largest cost base, although similarly represents the largest £1.1m as a result of the profile of the asset base. income generating area, has dropped from £23.6m to £22.8m, where the effects of the period length were partially offset by Average bank borrowings over the year amounted to £8.6m, Robert M Howat higher National Team tour investment and additional Pro Team which is £1.6m below the level during the period to 31 May Secretary coaching and off-field investment. Investment in Community 2014, generally as a result of funds from World Rugby received & Performance Rugby has increased from £5.0m to £6.2m, in advance of Rugby World Cup. Year end bank borrowings of Edinburgh, 23 July 2015 both through the increased resource being made available for £8.1m are £0.3m above the previous period level, principally as Domestic Rugby, but also through enhanced expenditure in the a result of working capital movements, in particular payments

38 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 39 Ian Rankin Jim Littlefair Elected as Vice-President at the 2013 AGM, Ian served as Jim is a business consultant and chairman of the Hearts and President this season. A former captain of Edinburgh Wanderers Balls Charitable Trust. Governance and Howe of Fife, he went on to coach both sides and Kirkcaldy Rod Lynch before taking charge of Caledonia Reds and Edinburgh Rod is a member and new Chief Executive of London Scottish. Reivers. He also assisted with Scotland A and Scotland under-20 He was elected as the first Scottish Exile Clubs Representative Patron President Vice President before holding the Director of Rugby position at Dundee HSFP. on the Council prior to the 2012 AGM. Edward A. Crozier Her Royal Highness, The Princess Royal Ian Rankin Edward A. Crozier Bill McMurtrie Ed was elected Vice-President at the 2014 AGM. He previously With nearly 40 years’ experience in rugby-related media, Bill is served on the Scottish Rugby Council as the Glasgow renowned for his vast knowledge of the game both in Scotland North Regional Representative and as a Scottish Rugby and internationally, still lending that experience to Scottish Board member. He also serves as a director on the board of Rugby’s annual Rugby Record. Bill is an honorary member of Scottish Rugby Council Celtic Rugby Limited, the organiser of the Guinness PRO12 Tennis Scotland and was a member of the Scottish Wildlife Trust competition. Ian Rankin President Council for 20 years from 1977. Dee Bradbury Mike Monro Edward A. Crozier Vice-President President of Oban Lorne and Secretary of Argyll and Bute, Dee A member of Aberdeenshire RFC since 1971, Mike has served has been an employee of Police Scotland since 1984. The former as Secretary and President. He refereed for a number of years Peter Laverie Premier Division manager of Scotland Women under-18, she is an established after retiring from playing. athlete and has represented both Scotland and Great Britain in Dr Doug Ward CBE National Division athletics as well as playing representative netball. Fergus Neil A referee for eight years then a referee assessor, Fergus is a Graeme Scott Championship Divisions Alan Brown World Rugby accredited Performance Reviewer and has A keen rugby player and Chartered Accountant, he has served as such at the Under-21 World Championships. Ian Barr Championship Divisions worked in the social housing sector for the past 31 years and He chaired the 2007 Scottish Rugby Match Officials Restructure is currently the Director of Finance and Corporate Services for Group and was Chairman of Scottish Rugby’s Match Officials’ At the AGM on 16 August 2014 Ian Rankin succeeded Donald Jim Littlefair Edinburgh Regional League the Eildon Housing Association Ltd. Selection Panel from inception until his election to the Council. Macleod as President and Edward A. Crozier was elected Archie Ferguson Jim Stevenson Glasgow North Regional as Vice-President of the Union after a contested election. Graeme Scott Archie serves as an ex officio member of the Council due League Graeme Scott joined the Council, replacing John Steele as the Graeme Scott joined the Council following the 2014 AGM. to his position as one of Scottish Rugby’s representative at National 2 representative. John Jeffrey and Archie Ferguson, Prior to his appointment, Graeme served as the Championship Rugby Europe. A former teacher, deputy head and education Bill McMurtrie Glasgow South Regional League in their capacities as Scottish Rugby’s representatives on Club Forum Secretary and he remains Honorary Secretary of inspector, Archie has been involved with rugby at all levels of international bodies, continued to serve during the year as Whitecraigs RFC. Alan Brown Scottish Borders Regional the game, including spells as a Board director of Scottish Rugby non-voting co-optees to the Council. Jim Stevenson League and Celtic Rugby Limited. Ian Rankin chaired the Council with the Vice-President, Edward Jim played rugby for Rutherglen, Cambuslang and Dalziel. He John Jeffrey Graham Kerr Midlands Regional League A. Crozier acting as the Vice-Chair. The Council met 11 times represented Glasgow and District Union and Lanarkshire during John won 40 caps for Scotland and was a member of the Grand during the financial year, including meeting immediately a career spanning over 30 years. A retired local government Slam team of 1990. He was also a British Lion and continues Mike Monro North Regional League after the AGM to elect Council representatives to the Board, offer with Glasgow City Council, Jim was Scottish Rugby to promote Scottish Rugby’s interests through serving as an ex quarterly reviews, two joint strategy and briefing sessions with President from 2008 to 2010. officio member of the Council by representing Scottish Rugby Fergus Neil Scottish Rugby Referees Assoc. the Board and additional briefing meetings. The Council is at World Rugby and on the Six Nations Council. Bruce Thompson responsible, among other things, for reviewing the operational An Oxford graduate in classics, Bruce is Head Teacher of Bruce Thompson Schools Division activity delegated to the Board, developing and fostering the Graham Kerr Strathallan School and the Scottish representative on the game of rugby in Scotland, reviewing and advising on matters Graham has been a member of Alloa RFC for many years, Headmasters’ Conference Sports Committee. He also chaired Dee Bradbury Women’s Rugby Forum of policy and strategy and developing relationships within the serving the club as a player, Coach, Secretary and Vice- the HMC Committee that looked into rugby safety issues liaising game at both domestic and international levels. President. As a rugby administrator, Graham was employed as Rod Lynch Exile Clubs closely with Scottish Rugby. Caledonia Rugby Administration Executive between 1997 and Council members continued to participate in a number 2006. Since 2006 he has served on the Caledonia Competitions Doug Ward John Jeffrey Co-opted member of working groups throughout the year including season Committee and is currently Caledonia Midlands Age Grade A current member and past President of Biggar, Doug is the (World Rugby & Six Nations) structures and governance review and in ambassadorial Convenor. Chairman of Celtic Renewables Ltd and a Vice-President of the capacities supporting the various age-grade and women’s European Biodiesel Board. He was appointed CBE in 2006 for Archie Ferguson Co-opted member Peter Laverie national teams. services to agriculture in Scotland and received an honorary (Rugby Europe) The former Head Coach of Ayr and Cartha Queens Park is doctorate in 2010 from Edinburgh Napier University. now forwards coach at Glasgow Hawks. Peter is also a Senior Lecturer at Glasgow Clyde College.

40 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 41 Sir Moir Lockhead OBE Ian McLauchlan Scottish Rugby Board Originally a mechanical engineer, Moir went on to be Chief Ian played for Jordanhill, Glasgow and Natal, was capped for As at the financial year end, the Directors of the Boards of Executive of First Group plc, and was appointed as the Scotland 43 times (19 as captain) and played in all Tests of the Scottish Rugby Union and Scottish Rugby Union plc and their Chairman of the Scottish Rugby Board on 1 July, 2011. successful British Lions Tours of New Zealand in 1971 and South terms of office were: Awarded a knighthood for services to transport in 2008, Africa in 1974. following an OBE in 1996, he was re-appointed to the Board He served two terms as Scottish Rugby President, is a non Sir Moir Lockhead for a further three years from 1 July 2014. He also chairs the executive member on the Scottish Rugby Board and is one of Independent non-executive, Chairman Nomination Committee. Scottish Rugby’s representatives with European Professional Originally appointed 1 July 2011 for 3 years. Club Rugby. Re-appointed for a further 3 years with effect from 1 July 2014. Mark Dodson Starting his career in 1979 at the Guardian Media Group, Mark Ian Rankin Ian Barr became Chief Executive of Guardian Media Group Regional Elected as Vice President at the 2013 AGM, Ian has served Council nominated non-executive Media in 2005 and was appointed to the Guardian Media as President this season. The former captain of Edinburgh Appointed 22 June 2013 for 2 years. Group Board. Wanderers and Howe of Fife went on to coach both sides Current term expires AGM 2015. He was appointed as Chief Executive in September 2011 and Kirkcaldy before taking charge of Caledonia Reds and Mark Dodson and is one of Scottish Rugby’s representatives with European Edinburgh Reivers. He also assisted with Scotland A and Chief Executive Professional Club Rugby, the 6 Nations Council, World Rugby Scotland under-20 before holding the Director of Rugby Appointed 19 September 2011. The Scottish Rugby Board is responsible for the ongoing and the British & Irish Lions. position at Dundee HSFP. management and operations of Scottish Rugby, under powers Colin Grassie delegated to it under the Bye-Laws. The Scottish Rugby Board, Dominic McKay Independent non-executive which also serves as the Board of Scottish Rugby Union plc, Director of Commercial Operations, Communications & Public Appointed 1 July 2012 for 3 years. comprises four independent non-executive Directors, four non- Affairs, Dominic joined Scottish Rugby in January 2008 from his Re-appointed for a further 3 years with effect from 1 July 2015. executive Directors nominated by the Scottish Rugby Council previous post at drinks giant Pernod Ricard. He is one of Scottish Rugby’s representatives on Celtic Rugby Limited (CRL) and Andrew Healy (one of the four being the President in his capacity as Chairman Rugby Europe. A keen sailor, he is Chairman and Trustee of the Finance Director of the Council) and three executive Directors. Colin Grassie is sailing charity Ocean Youth Trust Scotland. Appointed 22 August 2013. the Senior Independent Director. Mike Monro Ian McLauchlan Executive Directors serve under the terms of their employment A member of Aberdeenshire RFC since 1971, Mike has served as Independent non-executive or service contracts. The independent non-executive Directors Secretary and President. On retiring from playing, he refereed Appointed 1 July 2012. are appointed for terms of three years and would normally for a number of years and sits on the Scottish Rugby Council. Re-appointed for a further 3 years with effect from 1 July 2015. be expected to serve for two terms. Appointment of the independent non-executive Directors is by the Board, on the Dominic McKay Lesley Thomson QC recommendation of the Nomination Committee and subject to Scotland’s Solicitor General and a former general committee Director of Commercial Operations, Ian Barr ratification by the Council. member at Melrose RFC, Lesley was the first woman to sit on the Communications & Public Affairs Instrumental in setting up the Midlothian Rugby Development Scottish Rugby Board when she was appointed in 2013. Appointed 22 June 2013. The Council nominated non-executive Directors are appointed, Group, Ian has served as President of Lasswade RFC for a or reappointed as the case may be, by the Council after the Mike Monro number of years and sits on the Scottish Rugby Council. Fergus Neil AGM. Their terms in office vary; under the current Bye-Laws A referee for eight years then a referee assessor, Fergus is an IRB Council nominated non-executive Colin Grassie the President, as Chairman of Council, serves as a Director for accredited Performance Reviewer and has served as such at Appointed 6 December 2012. Born in Glasgow, Colin joined the Board on 1 July 2012. He chairs one year. Other Council nominated non-executive Directors the World Rugby under-21 World Championships. Re-appointed 16 August 2014 for 3 years. the Remuneration Committee and is the Senior Independent may serve for up to three years at a time, subject to remaining He chaired the 2007 Scottish Rugby Match Officials Restructure Director. He also sits on the Advisory Board of Winning Scotland Fergus Neil a member of Council. Eligibility for re-election depends on Group and was chair of the SRU March Officials’ Selection and is chair of the Development Trust of the Glasgow School Council nominated non-executive remaining a member of Council and the application of the Panel from inception until his election to the Council. Fergus of Art. Appointed 1 July 2012. Bye-Laws. On ceasing to be a member of Council, a Council acts as Chair of the Audit Committee. Re-appointed 22 June 2013 for 3 years. nominated non-executive Director is also required to step down Andrew Healy Robert Howat from the Board. Joining Scottish Rugby in 2007 as Financial Controller, Andrew Ian Rankin Robert joined Scottish Rugby as General Counsel in January was appointed to the Board as Finance Director in 2013. Council nominated non-executive The Board met 11 times during the year, including a separate 2013 and oversees the Legal and Governance Department. A Chartered Accountant and born in Glasgow, he played (President as Chair of Council) strategy session and the two joint briefing sessions with the Prior to taking on this role he was company Secretary at Celtic with GHA for a number of years, before retiring and taking Appointed 16 August 2014 for 1 year – expires at AGM 2015. Council. The Vice-President attends Board meetings as an FC for 11 years. observer but is not entitled to vote. The Board conducts an up refereeing for a further nine years. He played for Glasgow Lesley Thomson, QC annual evaluation of its performance with the outcomes Schools, Glasgow under-18 and Glasgow under-21 and Independent non-executive reported to the Board as a whole and procedures adjusted as represents Scottish Rugby on the ERC Finance Committee. Appointed 1 October 2013 for 3 years. appropriate following that appraisal.

42 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 43 Board Committees Governance Standards Director’s Representative Fee Bodies’ Fee Total During the period, the Board operated three sub-committees All members of the Board and Council are required to comply £ £ £ to assist with the delegation and management of its business. with Scottish Rugby’s Code of Conduct. Under the Code Membership of Board committees is restricted to non-executive of Conduct any alleged breach of the Code is subject to Sir Moir Lockhead 35,000 - 35,000 Directors and includes at least one Council nominated non- consideration by an independent panel. No breaches or Ian Barr 15,000 - 15,000 executive director on each committee. Executive Directors alleged breaches were reported in the year. and other members of staff and external advisers attend Colin Grassie 15,000 - 15,000 Development of Corporate Governance meetings regularly as required. Each committee has detailed Ian Rankin 15,000 - 15,000 terms of reference approved by the Board and Council. During the year a Review Panel was formed by the Council, with an Independent Chairman (Rob Flockhart) for the purpose of Ian McLauchlan 15,000 10,000 (ERC) 25,000 The Chairman of each committee presents a report to the examining governance issues. These included considering the Board on the committee’s work at the next Board meeting. Mike Monro 15,000 - 15,000 role and terms of office of the President and Vice-President Audit Committee (Chair: Fergus Neil) and Council electoral constituencies. Following a consultation Fergus Neil 15,000 - 15,000 exercise the Review Panel’s recommendations on the first of Mike Monro, Fergus Neil and Lesley Thomson served on this Lesley Thomson 0 - 0 these subjects were delivered to the Council in April 2015 and Committee during the financial year. The Committee is form the basis for two of the resolutions to be proposed by the Council members serving as international representatives for responsible for assisting the Board to discharge its responsibilities Council and Board at the 2015 AGM. Scottish Rugby Union are also entitled to be paid a fee for for accounting policies, financial reporting, internal financial their services on those bodies. The annual rates of fee for those control and risk management. The Committee met 4 times The Council and Board remain committed to the continuing individuals in office at the financial year end are set out in the during the financial year. Committee meetings are attended development and improvement of our governance structures. table below. Fees are subject to pro-rating for part years. routinely by the Financial Director, the Financial Controller, Work in relation to Council electoral constituencies and other the Company Secretary and representatives from the Union’s governance matters is intended to continue during the 2015/16 Position Held Paid by Value auditors. financial year. £ Nomination Committee (Chair: Sir Moir Lockhead) Remuneration and Benefits of Non-Executive and Council Edward A. Crozier CRL CRL 7,000 Board Representatives Ian Barr, Sir Moir Lockhead, Ian McLauchlan and Ian Rankin Archie Ferguson Rugby Europe SRU 7,000 served on the Committee during the financial year. The The Union offers its non-executive Board members, including Chief Executive and Company Secretary also attend the Council representatives on the Board, a fee for their service. John Jeffrey World Rugby World Rugby 25,000 Committee’s meetings. This Committee is responsible for The annual rates of fee applied for the non-executive Board and 6NC and 6NC making recommendations to the Board as to the membership members serving at the financial year end are set out below. of the Board and its Sub-Committees, the identification These amounts are pro-rated for part years. Board members Notes: and recruitment of new Directors when required and are also entitled to be reimbursed for expenses incurred wholly, 1. These rates were not changed in the financial year. the identification and appraisal of international body exclusively and necessarily on Scottish Rugby business. representatives. Advice is taken from external consultants as 2. Members of the Scottish Rugby Council receive no Due to the application of Scottish Government rules on required. The Committee met 3 times in the year. remuneration in respect of their elected roles although are other appointments Lesley Thomson continued to waive any entitled to recover expenses incurred wholly, exclusively Remuneration Committee (Chair: Colin Grassie) entitlement to fees. and necessarily on Scottish Rugby business in accordance Colin Grassie, Mike Monro, Ian McLauchlan and Lesley Thomson with Scottish Rugby’s expenses policy. served on the Committee during the financial year. The 3. World Rugby, Six Nations Committee (6NC) and Celtic Committee is responsible for making recommendations, within Rugby Limited (CRL) compensate the representatives/ agreed terms of reference, on remuneration policies, monitoring directors serving on those bodies and the service fees and approving executive directors’ and certain senior paid to the Scottish Rugby representatives involved were executive remuneration packages, setting and monitoring as noted. Fees payable by those bodies during the key performance targets and reviewing succession planning. financial year to Mark Dodson and Dominic McKay were Approval of the remuneration of senior coaches and higher- disclaimed by the individuals and are retained by Scottish earning players also falls within the Committee’s remit. Rugby. The Committee met four times during the financial year. The 4. Dominic McKay served as a director of Celtic Rugby Company Secretary attends meetings, with the Chief Executive Limited during the year, with Mark Dodson and Ian attending as required. Advice is taken from external consultants McLauchlan being Scottish Rugby’s nominated board when needed. members of European Professional Club Rugby. Lesley Thomson QC

44 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 45 Board Report The Directors present their Report and the audited financial statements for the year ended 31 May 2015.

An overview and review of the Union can be found in the Diversity Plan, which can be located on our website, and we The Directors are responsible for keeping adequate accounting Business Review, within the Strategic Report on page 38. have appointed an Equality Champion. In addition we have records that are sufficient to show and explain the Union’s recruited an Equality and Outreach Manager. This role has transactions and disclose with reasonable accuracy at any time Going Concern been instrumental in imbedding equality and diversity and the financial position of the Union and enable them to ensure The Directors believe that the Union has adequate resources progressing actions within our plan. that the Financial Statements comply with the Companies Act to continue in operational existence for the foreseeable future 2006. They are also responsible for safeguarding the assets Consultation with employees or their representatives has and it therefore continues to adopt the going concern basis in of the Union and hence for taking reasonable steps for the continued at all levels, with the aim of ensuring that their views preparing the Financial Statements. prevention and detection of fraud and other irregularities. are taken into account when decisions are made that are Employees likely to affect their interests and that all employees are aware The Directors are responsible for the maintenance and integrity of the financial and economic performance of their business of the Union’s website. Legislation in the United Kingdom Scottish Rugby recognises the value and importance of units and of the company as a whole. Communication with governing the preparation and dissemination of financial promoting equal employment opportunities for its current all employees continues through e-mail communication, team statements may differ from legislation in other jurisdictions. and future staff and considers all forms of discrimination meeting briefings and the distribution of the Annual Report. to be unacceptable in the workplace. We aim to be an Auditors and Disclosure of Information to Auditors inclusive organisation where everyone is treated with dignity Statement of Directors’ responsibilities So far as each Director is aware, there is no relevant audit and respect and where diversity is valued across all of the The Directors are responsible for preparing the Annual Report information (that is, information needed by the Union’s auditors recognised equality strands detailed within the Equality Act and the Financial Statements in accordance with applicable in connection with preparing their report) of which the Union’s 2010. The organisation is committed to providing equal law and regulations. auditors are unaware. opportunities throughout recruitment, employment, training and career development and has a comprehensive Equal Company law requires the Directors to prepare financial Each Director has taken all the steps (such as making enquiries Opportunities Employment Policy, Equality and Diversity statements for each financial year. Under that law, the Directors of other Directors and the auditors and any other steps Policy and several other related policies that support the nine have elected to prepare the Union’s Financial Statements required by the Director’s duty to exercise due care, skill and protected characteristics within the Equality Act. in accordance with United Kingdom Generally Accepted diligence) that he or she ought to have taken in his or her duty Accounting Practice (United Kingdom Accounting Standards as a Director in order to make himself or herself aware of any We are committed to adopting equitable employment and applicable law). Under company law, the Directors must relevant audit information and to establish that the Union’s practices and terms and conditions which are based on the not approve the Financial Statements unless they are satisfied auditors are aware of that information. merits, ability and potential of individuals, and to avoiding that they give a true and fair view of the state of affairs of the any conditions or requirements that cannot be justified by the Directors Union and of the surplus or deficit of the Union for that period. needs of the job. As an example of this equitable approach, In preparing these Financial Statements, the Directors are The Directors of Scottish Rugby Union plc who held office Scottish Rugby has been granted the Positive About Disabled required to: during the period, and up to the date of signing the Financial People award by Job Centre Plus, recognising our commitment Statements, are noted on page 42. to equality and confirming that applications from disabled • select suitable accounting policies and then apply them people are always positively considered by the organisation. consistently;

In addition to our employment practices, Scottish Rugby has • make judgements and accounting estimates that are By order of the Board achieved the Intermediate Level of the Equality Standard: A reasonable and prudent; Robert M Howat Framework for Sport which is a collaborative effort between the • state whether applicable UK Accounting Standards four national Sports Councils, UK Sport and equality organisations have been followed, subject to any material departures to achieve measurable stands of equality. Scottish Rugby disclosed and explained in the Financial Statements; has also been awarded the Preliminary Level of the Equality Standard through our efforts and commitment to make rugby • prepare the Financial Statements on the going concern Secretary basis unless it is inappropriate to presume that the Union in Scotland open to all. A significant amount of work has been Edinburgh, 23 July 2015 undertaken in producing and implementing our Equality and will continue in business.

46 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 47 Financial Statements Independent Auditors’ Report to the Members of the Scottish Rugby Union free from material misstatement, whether caused by fraud or Report on the Group Financial Statements Other matters on which we are required error. This includes an assessment of:

Our Opinion to report by exception • whether the accounting policies are appropriate to the Union’s circumstances and have been consistently In our opinion Scottish Rugby Union’s consolidated financial Adequacy of accounting records and information and applied and adequately disclosed; statements (“the Financial Statements”): explanations received • the reasonableness of significant accounting estimates • give a true and fair view of the state of the Union’s affairs Under the Companies Act 2006 we are required to report to you made by the directors; and as at 31 May 2015 and its surplus and cash flows for the if, in our opinion, we have not received all the information and year then ended; explanations we require for our audit. We have no exceptions • the overall presentation of the Financial Statements. to report arising from this responsibility. • have been properly prepared in accordance with United We primarily focus our work in these areas by assessing the Kingdom Generally Accepted Accounting Practice; and Directors’ remuneration directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the • have been prepared in accordance with the requirements Under the Companies Act 2006 we are required to report to you Financial Statements. of the Companies Act 2006. if, in our opinion, certain disclosures of directors’ remuneration specified by law are not made. We have no exceptions to We test and examine information, using sampling and other What we have audited report arising from this responsibility. auditing techniques, to the extent we consider necessary to The Financial Statements, comprise: Responsibilities for the Financial provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of • the consolidated balance sheet as at 31 May 2015; Statements and the audit controls, substantive procedures or a combination of both. • the consolidated income and expenditure account for Our responsibilities and those of the directors In addition, we read all the financial and non-financial the year then ended; As explained more fully in the Statement of directors’ information in the Financial Statements (the “Annual Report”) • the consolidated cash flow statement for the year then responsibilities set out on page 47, the directors are responsible to identify material inconsistencies with the audited financial ended; for the preparation of the Financial Statements and for being statements and to identify any information that is apparently satisfied that they give a true and fair view. materially incorrect based on, or materially inconsistent with, • the accounting policies; and the knowledge acquired by us in the course of performing Our responsibility is to audit and express an opinion on the • the notes to the Financial Statements, which include other the audit. If we become aware of any apparent material Financial Statements in accordance with applicable law and explanatory information. misstatements or inconsistencies we consider the implications International Standards on Auditing (UK & Ireland) (“ISAs (UK for our report. The financial reporting framework that has been applied in & Ireland)”). Those standards require us to comply with the the preparation of the Financial Statements is applicable law Auditing Practices Board’s Ethical Standards for Auditors. and United Kingdom Accounting Standards (United Kingdom This report, including the opinions, has been prepared for and Kenneth Wilson (Senior Statutory Auditor) Generally Accepted Accounting Practice). only for the company’s members as a body in accordance with For and on behalf of PricewaterhouseCoopers LLP In applying the financial reporting framework, the directors have Chapter 3 of Part 16 of the Companies Act 2006 and for no other Chartered Accountants and Statutory Auditors made a number of subjective judgements, for example in respect purpose. We do not, in giving these opinions, accept or assume Edinburgh, 23 July 2015 of significant accounting estimates. In making such estimates, responsibility for any other purpose or to any other person to they have made assumptions and considered future events. whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Opinion on other matters prescribed by the Companies Act 2006 What an audit of financial statements involves

In our opinion the information given in the Strategic Report and We conducted our audit in accordance with ISAs (UK & the Board Report for the financial period for which the Financial Ireland). An audit involves obtaining evidence about the Statements are prepared is consistent with the Financial amounts and disclosures in the financial statements sufficient to Statements. give reasonable assurance that the Financial Statements are

48 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 49 charged to the Income and Expenditure Account on an annual Principal Accounting Policies basis over the minimum period remaining until the redemption Consolidated Income The Financial Statements have been prepared under the of the associated instrument. & Expenditure Account historical cost convention, and on a going concern basis, in Pension costs accordance with the Companies Act 2006 and applicable Year Ended Period ended Contributions are made by the Union to money purchase Accounting Standards in the United Kingdom. A summary of 31 May 31 May scheme pension arrangements for certain employees. the more important accounting policies, which have been 2015 2014 Amounts due to assurance companies are charged against applied consistently, is set out below. Notes £000 £000 the income and expenditure account in the year in which they Basis of Consolidation become payable. The Union provides no other post retirement Income The consolidated Financial Statements cover the year to 31 benefits to its employees. Ticket income 10,143 8,225 May 2015 and include the Scottish Rugby Union, a mutual Finance and operating leases organisation, its subsidiary undertakings Scottish Rugby Union Broadcasting revenues 10,822 12,065 Costs in respect of operating leases are charged on a straight plc and The Murrayfield Experience Limited, and a related Other operating income 23,278 23,440 line basis over the lease term. body, the Thistle Rugby Trust. The parent body, the Scottish Rugby Union, has not traded during either the current period or Leasing and hire purchase agreements which transfer 44,243 43,730 previous year and its only assets and liabilities are its investment substantially all the benefits and risks of ownership of an asset in, and loans from, Scottish Rugby Union plc of £50,000. are treated as if the asset had been purchased outright. The Expenditure assets are included in fixed assets and the capital element Turnover International and Professional Rugby 22,761 23,614 of the leasing commitment is shown as an obligation under Turnover represents ticket sales, broadcasting revenue and all Domestic and Performance Rugby 6,201 4,969 finance leases. The lease rentals are treated as consisting other income and is stated net of VAT. Revenue is recognised Commercial and Operational 10,876 10,077 of capital and interest elements, with the capital element based on the relevant contractual terms or in accordance with applied to reduce the outstanding obligation and the interest Club Support and Development 2,772 2,251 the occurrence of the relevant event. Where consideration is element charged against the surplus or deficit for the period Depreciation 1,053 1,257 received in kind, income and expenditure are grossed up on on a straight line basis. Assets held under finance leases are the basis of arms length commercial rates. depreciated over the shorter of the lease term and the useful 43,663 42,168 Tangible Fixed Assets lives of equivalent owned assets. The cost of tangible fixed assets is their purchase cost, together Grants Operating Surplus 580 1,562 with any incidental costs of acquisition. Significant sums are Revenue grants are credited to the income and expenditure spent on maintenance of the Union’s main asset, BT Murrayfield account in the same period as the related expenses. Net Interest 3 (556) (702 ) Stadium, therefore the de-minimus level for capitalisation of assets has been set at £10,000 for the first three asset categories Taxation Surplus on ordinary activities before taxation 1 24 860 below and at £5,000 for Other equipment. Depreciation is The Union has mutual trading status for taxation purposes as Taxation on surplus on ordinary activities 4 - - calculated so as to write off the cost of tangible fixed assets, regards its trading activities with its own members and pays less their estimated residual values, over the expected useful tax only on the profit derived from trading with non members. economic lives of the assets concerned. The straight line Deferred taxation is recognised on all timing differences where Surplus for the financial period 15 24 860 basis is used in respect of all assets and the principal annual the transaction or events that give rise to an obligation to pay depreciation rates are: more, or less, tax in the future have occurred by the Balance %Sheet date. Deferred tax assets are recognised when it is The Union has no recognised gains or losses other than those included in the surplus above and therefore no separate statement Land Nil probable that they will be recovered. The tax rates in force at of total recognised gains and losses has been presented. All activities are continuing. Stands and Heritable property 1-20 the Balance Sheet date are used to calculate the need for any Fixtures and fittings 4-25 deferred tax provision or asset. There is no difference between the surplus on ordinary activities before taxation and the surplus for the periods stated above and Other equipment 7-50 Financial Instruments their historical cost equivalents. No depreciation is charged on Assets under Construction. The Union uses interest rate swaps to reduce its exposure to interest rate movements. Receipts and payments on these A commentary on the main items included in each of the above categories is appended to the Financial Statements after the Deferred Income interest rate swaps are recognised on an accruals basis over Five Year Financial Summary. Capital grants and debenture premiums are transferred to the life of the swap. The Union also uses forward sale currency deferred income and amortised over the estimated useful contracts to reduce its exposure to exchange rate movements. life of the associated fixed assets or the life of the debenture, The income relating to these sales is accounted for at the rate respectively. of exchange at which the related contract has been taken out. Debenture issue costs The Union does not hold or issue derivative financial instruments The costs associated with the issue of capital instruments are for speculative purposes.

50 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 51 Consolidated balance sheet Consolidated cash flow statement 2015 2014 Notes £000 £000 Year Ended Period ended Fixed Assets 31 May 31 May Tangible Fixed Assets 5 39,616 39,629 2015 2014 Investments 6 2 2 Notes £000 £000

39,618 39,631 Net cashflow from operating activities 16 1,999 4,391

Current Assets Return on investments and servicing of finance Debtors 7 5,456 4,896 Interest paid on bank overdrafts and loans (341) (409 ) Cash at bank - 404 Cash in hand 8 5 Capital Expenditure and Financial Investment Payments to acquire Tangible Fixed Assets (1,877) (598 ) 5,464 5,305 Financing Creditors: amounts falling due within one year 8 (20,132) (11,654 ) Repayment of bank loan (2,250) (1,250 ) Finance lease (4) (5) Net Current Liabilities (14,668) (6,349 ) Provisions for liabilities 9 (46) (44) (Decrease) / Increase in cash (2,473) 2,129

Total Assets less Current Liabilities and Provisions 24,904 33,238

Year ended Period ended Creditors: amounts falling due after more than one year 8 148 8,451 31 May 31 May Deferred income 10 2,070 2,207 Reconciliation of net cash flow to movement in net debt 2015 2014 Ten Year Debentures 11 1 1 £000 £000 Murrayfield Debentures 12 31,542 31,460 Irredeemable Debentures 13 97 97 (Decrease) / Increase in cash in period (2,473) 2,129 Amortisation of Murrayfield Debentures (82) (89) 33,858 42,216 Repayment of bank loan 2,250 1,250 Finance lease 4 5 General Reserve 15 (8,954) (8,978 ) Change in net debt (301) 3,295 Opening net debt (39,411) (42,706 ) 24,904 33,238 Closing net debt 17 (39,712) (39,411 )

The Financial Statements on pages 50 to 60 were approved by the Scottish Rugby Board and signed on its behalf on 23 July 2015 by:

Sir Moir Lockhead OBE, Chairman

Mark Dodson, Chief Executive

52 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 53 Notes to the Financial Statements Notes to the Financial Statements

1. Surplus on ordinary activities before taxation 2. Staff Costs (cont) Year Ended Period ended 31 May 2015 31 May 2014 Year Ended Period ended The surplus on ordinary activities before taxation is stated after crediting: £000 £000 31 May 2015 31 May 2014 Amortisation of deferred income 137 148 Total Total Barter transaction sponsorship income 851 710 £000 £000 Employment costs: And after charging: Wages and salaries 21,052 19,868 Auditors remuneration 25 25 Social security costs 2,295 2,131 Auditors fees for non-audit services Other pension costs 573 488 Tax compliance 8 7 Tax advisory 6 9 23,920 22,487 Other 2 2 At the period end the pension accrual was £159k (2014 - £105k). Depreciation charge for the period Owned fixed assets 1,053 1,257 Operating lease rentals 3. Net Interest Year Ended Period ended Plant & machinery 44 10 31 May 2015 31 May 2014 Other 305 265 £000 £000 Barter transaction sponsorship costs 851 710 Interest payable on bank borrowings (474) (613 ) Administrative and management expenses 2,682 2,646 Amortisation of Debenture issue costs (82) (89) (556) (702 ) 2. Staff Costs The rates of interest on the Union’s term loan borrowings are included in Note 8. The average number of persons employed during the period who are involved in and support the Scottish game was:

Year Ended Period ended 4. Taxation on surplus on ordinary activities Year Ended Period ended 31 May 2015 31 May 2014 31 May 2015 31 May 2014 No. No. No. No. £000 £000 Rugby Current Tax: Professional Players 101 100 Professional Teams - Coaching & Operations 24 22 On profits arising from non-mutual trading - - National Team - Coaching & Operations 9 9 Deferred: Elite Development Players & Coaches 33 26 Origination and reversal of timing differences (27) 533 Domestic & Performance 69 61 Movement in deferred tax unprovided 27 (533 ) Strength & Conditioning 11 12 - - Medical & Physiotherapy 10 11 257 241 Factors affecting the current tax charge for the year: Stadium Operations 37 34 Commercial, marketing & other 51 42 Surplus on ordinary activities before tax 24 860 corporate functions TOTAL 345 317 Corporation Tax at 20% (2014 - 20%) 5 172 Effects of: Within the above figures: Net expenses not deductible for tax purposes 141 167 Domestic & Performance includes employees within the BT Academies, Domestic Rugby Support, Services, Participation Crystallisation of tax losses (112) (316 ) and Development, Coach Development, Outreach & Equality, Schools & Youth, Domestic and Elite Refereeing, and Age Non-taxable mutual profits (150) (134 ) Grade & Other Coaches. Depreciation in excess of capital allowances 88 105 Stadium Operations includes staff involved in Event Management, Ticketing and Stadium & Pitch Maintenance. Movement in other timing differences 28 6 Commercial, marketing & other corporate functions includes Commercial & Marketing, HR & Communications, Finance & IT, - - Governance and Business Services. The Union has gross taxable profits arising in the period of £nil (2014 - £nil).

54 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 55 Notes to the Financial Statements Notes to the Financial Statements

5. Fixed Assets 7. Debtors (cont) Heritable Fixtures Other Assets Under Property & fittings Equipment Construction Total The Union has entered into a number of forward sale currency contracts to reduce its exposure to exchange rate movements £000 £000 £000 £000 £000 affecting the income it receives in Euro. At 31 May 2015, the contracts held were for a total of €9m, with settlement dates Cost between 25 January 2016 and 29 July 2016 at an average rate of £0.73:€1. The notional market value of these contracts at As at 1 June 2014 46,128 14,171 3,888 916 65,103 31 May 2015 was £151k. At 31 May 2014, contracts for a total of €1.3m were held, with a settlement date of 30 June 2014 at Additions 513 162 365 - 1,040 an average rate of £0.86:€1. The notional market value of these at 31 May 2014 was £61k. Transfers 916 - - (916 ) -

As at 31 May 2015 47,557 14,333 4,253 - 66,143 8. Creditors 2015 2014 Accumulated Depreciation Amounts falling due within one year £000 £000 As at 1 June 2014 10,241 12,190 3,043 - 25,474 Bank overdrafts 2,072 - Charge for year 657 218 178 - 1,053 Bank Loans 6,000 As at 31 May 2015 10,898 12,408 3,221 - 26,527 Obligations under finance leases 5 5 Net Book Value Advance receipts 4,391 3,918 As at 31 May 2015 36,659 1,925 1,032 - 39,616 Trade creditors 2,163 2,251 Other tax and social security 1,234 1,111 As at 31 May 2014 35,887 1,981 845 916 39,629 Accruals 4,267 4,369 20,132 11,654

Amounts falling due after more than one year 6. Investments Bank loans and overdrafts - 8,250 The Union is the beneficial owner of 1,667 €1.27 ordinary shares in European Rugby Cup Limited (ERC), a company incorporated Obligations under finance leases 3 7 in the Irish Republic. The Union’s holding represents 16.67% of the company’s issued share capital. Other creditors 145 194 148 8,451 The Union holds one €1.25 ordinary share in British Lions Limited, a company incorporated in the Irish Republic. The Union’s investment represents a 25% holding in the issued share capital of the company. Finance lease obligations to which the Union is committed are due: In one year or less 5 5 The Union is the beneficial owner of 100 €1.00 ordinary shares in Celtic Rugby Limited, a company incorporated in the Irish Republic. The Union’s holding represents 33% of the company’s issued share capital. Between one and two years 3 5 Between two and five years - 2 Given the disposition of the other shareholdings in these companies, and the immateriality of their net surpluses and 8 12 net assets after receipt of dividends by the Union, the Directors do not believe that these investments fall to be treated as associate companies. Fixed asset investments are stated at the lower of cost and valuation. Within Amounts falling due within one year, bank loans of £6m (2014 - amounts falling due after more than one year - £8.25m) were repayable in full on 30 June 2015. Security was granted to the Union’s bankers by way of a Bond and Floating charge over the assets of Scottish Rugby Union plc.

The Union had entered into an interest rate swap with the Bank of Scotland, in relation to £6m of the loan (2014 - £8.25m). This 7. Debtors fixed the interest rate on these borrowings at 4.295% (2014 - 4.295%). 2015 2014 Amounts falling due within one year £000 £000 The Union has concluded a further re-financing deal with the Bank of Scotland and a new term loan of £6m has been agreed. Trade debtors 4,413 3,818 £0.5m of this loan is repayable annually, with the balance being repayable in full on 30 June 2020. The Union has also entered Prepayments 655 890 into a further interest rate swap with the Bank of Scotland, initially in relation to £5.5m of the new term loan. This has fixed the interest rate on these borrowings, from July 2015, at an average rate of 3.491%. Other debtors 388 188 5,456 4,896 The interest rate swap arrangement has a notional market value, being the net present value of future cash flows due under the swap compared to current interest rates. The market value of the interest rate swap on 31 May 2015 was (£9k). The market value of the interest rate swaps in place on 31 May 2014 relating to the £8.25m term loan was (£43k).

56 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 57 Notes to the Financial Statements Notes to the Financial Statements

9. Provisions for liabilities 12. Murrayfield Debentures Deferred Tenant Tax Club Fund Total Class of 31 May 2015 31 May 2014 £000 £000 £000 Debenture Value Each No. Authorised No. Issued £000 No. Issued £000 Opening - 44 44 A £1,200 9,100 9,092 10,910 9,092 10,910 Transfer during period - 2 2 B £2,200 7,900 7,900 17,380 7,900 17,380 Closing - 46 46 C £3,500 1,000 1,000 3,500 1,000 3,500 Thistle £9,900 500 188 1,861 188 1,861

Debentures issued 18,180 33,651 18,180 33,651 Deferred taxation comprises: 2015 2014

£000 £000 Issue Costs: Accelerated capital allowances 1,644 1,704 Opening 2,191 2,280 Other timing differences 390 418 Amortisation (82) (89) Trading losses carried forward (3,399) (3,470 ) Closing 2,109 2,191 (1,365) (1,348 ) Deferred Tax asset not recognised 1,365 1,348 Net Issue Proceeds less amortisation 31,542 31,460 - -

Following due consideration of future anticipated taxable profits, the residual deferred tax assets on trading losses carried The Murrayfield Debentures are unsecured, rank pari passu and are interest free. Repayment, at par, is at the discretionof forward has not been recognised on the basis that it will take some time for them to be fully recovered. The deferred tax the Union on or after 1 January 2043 in respect of the A and C Debentures and 1 January 2044 with regard to the B and Thistle asset will be fully recoverable should there be appropriate future taxable profits. Debentures. Murrayfield Debenture holders have the right to purchase a ticket for any event or match at the stadium for which the Union retains direct control over the allocation of all tickets. In respect of Six Nations matches the ticket is for a specific seat. Thistle and C Debenture holders also have the right to purchase certain matchday hospitality packages.

10. Deferred income Heritable Debenture 31 May 31 May Property Premium 2015 2014 13. Irredeemable Debentures £000 £000 £000 £000 Opening 1,598 609 2,207 2,355 The 972 (2014 - 972) Debentures of £100 each (the 1925 Debentures) entitle the holder to purchase two tickets at BT Murrayfield for Amortisation (31) (106 ) (137) (148 ) each match directly controlled by the Union. The debentures are interest free. Closing 1,567 503 2,070 2,207

14. Leases

11. Ten Year Debentures Non-cancellable commitments under leases to pay rentals in the year following the year of these Financial Statements are Class of Max. No. 2015 2014 noted below, analysed to the year in which each lease expires. Debenture Issue Debenture Value Each Authorised No. issued No. issued

2009 Debentures J £1 500 90 90 2015 2014 K £1 1,000 429 429 £000 £000 L £1 200 78 78 Land & Buildings - Expiring within 2 to 5 years 305 305 2012 Debentures N £1 1,000 14 14 Plant & Machinery - Expiring within 2 to 5 years 15 10 O £1 1,000 180 180 320 315 Debentures issued 791 791

The 2009 Debentures are unsecured, interest free and repayable at par on 31 May 2019. The 2012 Debentures are unsecured, interest free and repayable at par on 31 May 2022. Holders of the 2009 and 2012 Debentures have the right to purchase a ticket for any event or match at the stadium for which the Union retains direct control over the allocation of all tickets. In respect of Six Nations matches, the ticket is for a specific seat.

58 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 59 15. General Reserve 2015 2014 Five year Summary £000 £000 Opening (8,978) (9,838 ) 2015 2014 2013 2012 2011 £000 £000 £000 £000 £000 Surplus for the year 24 860 Closing (8,954) (8,978 ) Income 44,243 43,730 39,275 38,226 35,086

Expenditure: 16. Reconciliation of operating surplus to net cashflow from operating activities Year ended Period ended International and 31 May 2015 31 May 2014 Professional Rugby 22,761 23,614 20,884 19,116 16,691 £000 £000 Domestic and Operating surplus 580 1,562 Performance Rugby 6,201 4,969 4,701 4,494 4,221 Depreciation charge 1,053 1,257 Commercial and Amortisation of deferred income (137) (148 ) Operational 10,876 10,077 8,874 9,207 9,121 Tenant club residual fund 2 2 Club Support and Movement in debtors (560) 363 Development 2,772 2,251 1,932 1,900 1,805 Movement in creditors 1,061 1,355 Depreciation 1,053 1,257 1,100 1,131 1,037 1,999 4,391 43,663 42,168 37,491 35,848 32,875

17. Analysis of changes in net debt Other Operating Surplus 580 1,562 1,784 2,378 2,211 31 May 2014 Cash Flows Changes 31 May 2015 £000 £000 £000 £000 Surplus on sale of Fixed Asset - - - 121 -

Cash in hand 5 3 - 8 Surplus on ordinary activities Bank 404 (2,476 ) - (2,072) before interest 580 1,562 1,784 2,499 2,211

Bank loans (8,250 ) 2,250 - (6,000) Net interest (556) (702) (926 ) (919 ) (923 ) Finance Leases due within one year (5 ) 4 (4 ) (5) Surplus before taxation 24 860 858 1,580 1,288 Finance Leases due after one year (7 ) - 4 (3) Irredeemable Debentures (97 ) - - (97) Taxation - - - (10) - Murrayfield Debentures (31,460 ) - (82 ) (31,542) Surplus for year / period 24 860 858 1,570 1,288 Ten Year Debentures (1 ) - - (1) Note (1) (39,411 ) (219 ) (82 ) (39,712) Capital Expenditure 1,040 1,558 534 636 1,008 18. Related Party Transactions Two of the directors of Scottish Rugby Union plc, Mike Monro and Ian Rankin, were also trustees of the Murrayfield Centenary Fund during the year. Scottish Rugby Union plc does not charge the charity for any administrative or other support that it Note (1) – 2014 represents a 13 month period, ended 31 May 2014. Other columns represent one year, ended 31 May for 2015, and provides and made no donation to it in the current year or previous period. 30 April for other years. During the course of the year, £16k (2014: £9k) of ad hoc grounds and facility services were purchased from WH&R Barr, a firm whose managing partner, Ian Barr, is a Director of Scottish Rugby Union plc. At the year end £nil (2014: £2k) was outstanding. Fergus Neil, a director of Scottish Rugby Union plc acts as a referee performance reviewer for domestic, EPCR and Pro12 fixtures, on behalf of Scottish Rugby. The fee payable to Mr Neil for this service in the year was £1,125 (2014: £1,500).

19. SRU Group The Scottish Rugby Union carries out all of its operations through its wholly owned subsidiary, Scottish Rugby Union plc, the registered office of which is BT Murrayfield Stadium, Edinburgh, EH12 5PJ. For accounting purposes the group is also deemed to include the Thistle Rugby Trust. The group has taken advantage of the exemption conferred by FRS8 from the need to disclose transactions between group entities that have been eliminated on consolidation in these group Financial Statements.

60 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 61 Commentary on the Financial rugby team, which is supported by sportscotland, together costs of marketing campaigns, promotional materials, media with associated programme costs, including travel, training events and other operational activities are also included Statements and event costs are also included. Similarly, expenditure for here. Similarly included are the costs of other support staff This section provides a general commentary on the income and the delivery of the programme related to funding from the and programmes in the areas of ticketing, HR, procurement, IT, expenditure categories for the year ended 31 May 2015. Cashback for Communities grant is included here. finance, governance and business services. Finally, the costs of the communications and public affairs team and related The investment in The BT Sport Scottish Rugby Academy in Turnover activity across the wide spectra of print, broadcast, web and 2014/15 is included in this category. Costs include coaching, other social media are part of this category. Scottish Rugby’s turnover comes from a number of areas. facilities, programmes and players, kit, equipment and match National team match ticket sales, including the RBS 6 Nations costs. Specialist coaching costs are included here, as are Club Support and Development and the viagogo Autumn Tests, pro-club match ticket sales analysis and other rugby operational support costs. This area and tickets for the Emirates Airline Glasgow 7s, together with also includes investment in the Exiles programmes. Scottish Rugby recognises that investment in the sport at related broadcasting revenue provide a significant element of grassroots level is a key element in maintaining and growing Referee development, from grassroots to international level, this. Match day income also includes revenue from pitchside the game. Clubs are supported through the payment of includes the costs of referee coaching, travel to games, kit, advertising boards, match programmes and revenue from Participation Monies, Player Accident Insurance, contributions and staffing and office expenditure for those employed in this hospitality activities. The sale of merchandise throughout the to cup and league travel costs, the Club Sustainability Fund area. Referee costs also include salary, travelling expenses period is a further important source of income. and the payment of all referees’ travel costs across the and associated costs for professional refereeing. country. Ticket commissions which clubs receive for sales of Scottish Rugby is grateful for funding from its many sponsors In the area of coaching, Scottish Rugby staff deliver United international and sevens tickets are included here as are player including BT, the Royal Bank of Scotland and Macron, and Kingdom Coaching Certificate (UKCC) courses throughout reward scheme payments, where clubs’ contributions to the for significant grant funding from World Rugby, sportscotland Scotland to ensure that coaches are properly qualified to development of players who have gone on to win academy or and the Cashback for Communities programme. Turnover coach at all levels and the delivery of this programme is part- professional contracts are acknowledged. The joint funding of also includes income from the European Rugby Cup and funded by sportscotland. Also included are the costs of the Club Development Officers in partnerships with both clubs and the Guinness Pro12 League, and from other events held in BT Coach Development Officers, and training and facility costs, local authorities across the country is also part of club support Murrayfield Stadium including dinners, business conferences, as well as tutor and registration fees. Scottish Rugby assists in and development expenditure. concerts, football matches and Christmas party nights. the delivery of the Positive Coaching Scotland programme and the costs associated with this are included here, as are the Depreciation International and Professional Rugby programme and administration costs of the Are You Ready to Depreciation is the annual charge in respect of Scottish The expenditure relating to the players, management, medical Play Rugby safety initiative. Rugby’s fixed assets, primarily the redevelopment costs ofBT and strength & conditioning teams involved in International Finally, the provision of medical services from physiotherapists Murrayfield Stadium. and Professional rugby is within this category. This includes and doctors, for cover at various events and matches are travel, food and accommodation at venues, salaries, kit, included here, as are related strength and conditioning costs. laundry costs, travel insurance, training facilities, honours caps and team coach hire for all of the Scotland teams playing at Scottish Rugby is grateful for the support of sportscotland and Registered Office Auditors international level. It also includes all Pro-club costs, being World Rugby grants which assist in the delivery of a number of BT Murrayfield Stadium PricewaterhouseCoopers LLP players’, coaches’ and support staff salaries together with kit, the above programmes. Edinburgh, EH12 5PJ Chartered Accountants and travel and other coaching costs, and match day outgoings Statutory Auditors such as advertising, turnstile staff, ticket printing, venue Commercial & Operational Level 4, Atria One, preparation and entertainment. Bankers Commercial and Operational costs cover various areas of 144 Morrison Street, Expenditure in the provision of medical services, including activity in Scottish Rugby. The running costs of the national Bank of Scotland Edinburgh, EH3 8EX physiotherapists, match doctors for the players, crowd doctors, stadium are included and these range from pitch repair and Head Office

and the medical supplies needed for strapping and treating preparation to roof and other stadium maintenance, from The Mound, injuries is included in this category as is the investment in security to insurance, and from rates to electricity, gas and Edinburgh, EH1 1YZ Solicitors the strength and conditioning personnel who work with the water, all of which continue to ensure that BT Murrayfield Pinsent Masons National and Professional teams together with the associated remains a suitable, safe, and well maintained venue. Also Princes Exchange programme costs. included are match day and non-match day operational and 1 Earl Grey Street, staff costs, as are other event management and entertainment Edinburgh, EH3 9AQ Domestic and Performance Rugby costs.

Grassroots investment, which is key in helping to develop the Marketing and commercial expenditure is included in this area, players and coaches of the future, as well as maintaining and where the costs of partnering with, developing and maintaining growing the game, is included in this category. The domestic Scottish Rugby’s family of sponsors are recorded. The activation

62 Scottish Rugby Annual Report 2014/15 Leadership . Engagement . Achievement . Enjoyment . Respect 63 Thank you to Scottish Rugby’s Partners

Principal Partners

Official Partners

Glasgow 7s Partners

64 Scottish Rugby Annual Report 2014/15 Inspiring Scotland Through Rugby Leadership . Engagement . Achievement . Enjoyment . Respect