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Contents

4 6 8

Rob Flockhart Colin Grassie Mark Dodson President’s Welcome Chairman’s Review Chief Executive’s Report 10 18 20

Scotland Women, Women 7s 7s, U20 & Age-grades Warriors Rugby 22 24 34 Domestic Rugby Dominic McKay Coach Developement, Club Rugby, BT Sport Scottish Women & Girls, Schools & Youth, Chief Operating Rugby Academy Match Officials Officer’s Report 38 44 45

Looking after Governance & our People Strategic Report Board Report

58 Principal Accounting Policies Scottish Rugby 61 Primary Statements BT Murrayfield, Edinburgh EH12 5PJ 54 58 Tel: 0131 346 5000 66 Notes scottishrugby.org | @scotlandteam 75 Five Year Summary All information correct at time of Independent Auditors’ Financial 76 Commentary on the going to print on 24 July 2017. Report Statements Financial Statements To download a copy please visit Hamish Watson scottishrugby.org/annualreport v Australia 2017 6 7

Club Support First female President’s Welcome 39 & Development contracted conferences referee

Success has come in many forms for Scottish Rugby this season and S c h our intention is to continue that progress as we invest further in all n o past o o aspects of the game. l s s five years id & v The annual influx of talent from the Y a o D ut ie schools and youth game to the adult h es £12.7M ll Conferenc Ho game is achieved only through the invested Over planning, hard work, dedication and 20% 40% increase love for our sport shown by so many increase 2,300 people around and, indeed, outwith the 275 qualified country to all of whom I say thank you. schools & match clubs officials I am pleased to report that schools and The Club Awards Dinner profiled youth rugby experienced another year of outstanding contributions to our game. growth under our conference structure, Congratulations to BT Premiership 2,268 179 Games played female match officials which has player welfare at its forefront. champions Ayr on being awarded BT Club of the Season for their work in In its second year, the conferences producing a sustainable youth section provided regular games for more and on-going efforts to develop their boys and girls across the country and women’s and girls’ section. Women & Girls will see additional impetus under the 122 commercial encouragement of our new Well done to BT Women’s Club of the Club rd awards to

Season County, who have built a 3 clubs partner, Mitsubishi. Sustainability Fund season strong foundation for the future. One of the challenges for all of us is % % to welcome and retain more of these Increasing investment and providing tools £1.6M Women’s teams24 8 to clubs over 4 years Girls’ teams players in our adult club game. for clubs to thrive in their communities increase increase remains a priority for Scottish Rugby. In the international arena, following a fruitful Our focus on creating sustainable clubs autumn series, Scotland won all three home is at the heart of the Agenda 3 strategy Scotland Club XV RBS 6 Nations matches in front of sold-out which was introduced this year to look at crowds, whilst securing their highest place of BT Premiership performance, participation and finance. fifth in the rankings. 6 Clubs represented This season saw a further £2.8m invested Alloa Scotland Women secured their first win Lost v England Counties (45-28) into Club Support & Development, but received in the Six Nations in seven years against towards clubhouse, changing we must protect domestic rugby and Wales and backed this up with a victory room & gym development national team activities from rising k against Italy, illustrating how far they £50 this season Player Welfare Workshops costs elsewhere in the sport. We have have come in two seasons. enjoyed excellent support from our regional workshops Scotland 7s won the final round of the partners such as BT who enable us to 3 for clubs and schools develop our game. HSBC World Rugby Sevens Series to end to be held in 2017 the season on a high, while Scotland tland U The unanimous backing from clubs at o 2 following a positive response c 0 6 Women 7s had an outstanding success S a Special General Meeting in October in winning the Rugby Europe Women’s th to seek inward investment into our Sevens Trophy. 5 professional sides was a major step Elaine Martin from East Kilbride was Our national age-grade teams and the forward for Scottish Rugby. I would like awarded BT Volunteer of the Season BT Sport Academy continued to develop to thank all those who attended for their for her hard work in various roles at the next generation of talented players. time and support. the club. This was underlined as our national Good luck to everyone for the season under-20 team secured their best finish ahead. Thank you for your valuable d W an om in the World Rugby U20 Championship. tl contribution to rugby in Scotland. o e c n Congratulations to all BT League winners S th and those who made it to the BT Cup Rob Flockhart 4 Sarah Beaney Cup finals. The season culminated in another President, Scottish Rugby champions, excellent BT Cup Finals Day at the Hillhead Jordanhill Best finish in World Rugby Highest finish in Six national stadium, where Melrose won U20 Championship Nations since 2010 the BT Cup and Hillhead Jordanhill lifted the Sarah Beaney Cup.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 8 9 Chairman’s Review The financial stability of Scottish Rugby has improved significantly Up Turnover Expenditure Up in recent years under the stewardship of former Chairman Sir Moir Lockhead. £4M £3.1M Sir Moir’s leadership greatly contributed £51.4M £49.7M to Scottish Rugby’s upturn in fortunes on and off the pitch, including the Depreciation, Disposal & transformational partnership with BT Net Interests which increased investment into the domestic game and established the BT Club Support Sport Academy. & Development Ticketing I would like to take this opportunity to thank Sir Moir for being so generous with Scotland v Ireland 2017 his time and expertise during his six-year The new structure alone isn’t a magic Domestic tenure and laying firm foundations for bullet. We are also looking at ways to & Performance the sport to flourish in the years ahead. diversify our revenue streams through globalising the Scottish Rugby brand with Scottish Rugby is at a pivotal moment. a focus on the Asian and US markets, We need to be creative to combat the this is alongside our existing strategic challenges ahead while also driving Surplus alliance with Nagasaki in Japan. forward our ambitious modernisation and commercial strategies. BT Murrayfield, the home of Scottish Rugby, was last renovated 22 years ago £1.7M I’m delighted to report this year’s and the ageing stadium is in need of turnover of £51.4m was £4m higher Broadcast substantial investment. than the previous year. This was due Commercial to increased ticket and broadcast Plans for a new hotel at the main & Operational income, as well as higher commercial entrance to the site are progressing income from a number of sponsorship and is one example of how we are agreements. looking into the stadium estate to source potential income streams. While this is pleasing, we cannot be complacent as professional player We take our place in society very seriously costs continue to rise and competition and recognise we have a responsibility for broadcast and sponsorship deals to uphold our values of respect, Average remains fierce. leadership, achievement, engagement and enjoyment in everything we do. This is not a unique situation as fellow Debt traditional rugby nations are also facing Rugby’s contribution to Scotland is Commercial similar financial challenges, including hugely important, from the positive £5.2M the might of privately owned European commercial impact to raising the Down clubs offering record player salaries. country’s profile and reputation, while also having obvious health benefits. This season, with the unanimous backing £3.3M of our member clubs, we moved to Player Welfare remains a priority across look externally and secure inward all levels of our sport. Child protection International investment to ease the burden of and wellbeing is of paramount & Pro Rugby owning two professional teams. This is a importance to us and we recognise all very challenging task but one which our adults who coach or supervise children executive team are up for. have a duty to safeguard their welfare.

The executive team are now in the Like all Scotland supporters, I’m delighted process of developing the necessary at the team’s success on the pitch and Other governance and legal structures to wish the new coaching teams at Scotland, enable an outside investor to have a and clear view of the opportunity we have the best of luck for the season ahead. and how their investment would fit into our business. Colin Grassie Chairman, Scottish Rugby

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 10 11

MacRae has joined the new coaching Chief Executive’s Report set-up at Edinburgh Rugby under , who has three English Premiership Agenda Scottish Rugby has ambitious plans to grow the game and ensure it titles to his name, with thrives for generations to come, while safeguarding players across all returning to the role of Attack Coach, A blueprint for levels of the sport. and Roddy Grant joining as an Assistant sustainable clubs It has been a successful season on Forwards Coach. 3 cipa 3 year plan a number of fronts, from Scotland Successful and rti tio winning all three home RBS 6 Nations a n age-grade coach heads up P matches in front of sell-out crowds to the new backroom at Glasgow Warriors Scotland Teams generating record revenue in a difficult completed by former Scotland Assistant Around the World financial climate. Coaches and 1 While we’re in a period of financial Jason O’Halloran, with Kenny Murray and growth we must also be proactive and staying on. n Scotland plan for the future, which is why we have ina ce This is an exciting prospect as we I’m sure they will all hit the ground running F set ourselves the long-term objective , , Singapore, continue to strengthen our ties with and get both sides into shape ahead of of generating significant external , Fiji the Japanese RFU and the city of their respective European and Guinness investment to secure the future of our Nagasaki, who will host the national PRO12 campaigns. To everyone involved game in Scotland. 2 £ Scotland Women team for a preparation camp ahead in rugby across Scotland, all the best for The ongoing development of grassroots of the World Cup. the season ahead. London, La Rochelle, Madrid, rugby will always be a priority. We Czech Republic, Hungary The strategic alliance with Nagasaki Mark Dodson orman invested £2.8 million into Club Support rf c builds on the existing relationship with Chief Executive, Scottish Rugby e e & Development this season, while P Scotland U20 the JRFU, which was formalised in 2013 also launching the Agenda 3 strategy to develop a deeper relationship from a London, , Georgia covering performance, participation rugby and commercial perspective. and finance to further support clubs to 3 Scotland 7s become sustainable. Gregor’s first match in charge alongside Assistant Coaches Matt Taylor, Dan Dubai, Cape Town, , Player welfare remains paramount McFarland and Mike Blair saw Scotland Sydney, Las Vegas, Vancouver, across all levels of our sport as we claim a convincing win against Italy in Hong Kong, Singapore, Paris, continue to be leaders in concussion Singapore. The historic match was London research and implement programmes the first tier one international to to protect youth and amateur players, be played in as well as providing world-class support the Lion City to our elite athletes. and is the We continue to support valuable medical continuation research with the aim of benefiting of our players in the future. One example is a long-term group at University who have objective to further made ground-breaking progress on globalise our brand in Asia-Pacific. nerve injuries since we began supporting It was fantastic to see Scotland them three years ago. 2019 | Japan Women secure two well-deserved I would like to thank for wins in the Six Nations and finish fourth, his contribution to Scotland’s success, while Scotland 7s ended the season on including reaching their highest a positive note collecting silver in Paris ever position of fifth in the World and lifting the Cup in London. Rugby rankings. This was a great send off for Scotland I’m looking forward to seeing progress 7s Head Coach Calum MacRae who under as our handed over the reins to Scotland U20 attention turns to Rugby World Cup Head Coach John Dalziel. 2019, where we will meet hosts Japan in John Barclay the pool stages. Scotland v Italy 2017 RBS 6 Nations We were fully involved in the development of World Rugby’s new global season and negotiated the return of Scotland to playing summer test-match series against the best teams in the southern hemisphere from 2020. Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 12 13

ogg h t H inis ed ar F Scotland tu n 201 S o 6 Youngest as /1 th Se 7 Scotland enjoyed a memorable season, winning 7 of 11 test player to reach 4 matches to end an era of positive development for Head Coach Vern Cotter, and herald a new beginning under Gregor Townsend. 50 Setting new records, Scotland played caps in front of three sold-out BT Murrayfield 332,812 crowds in the RBS 6 Nations and recorded 7/11 total Scotland Attendance 14 s e wins i three home wins. They also cruised r t past the record set for tries (14) and rd RBS Six Nations 3 Sell 201,506 co points (122) scored the previous year in outs Re the Championship. Autumn Test Series 131,306 n poi ts d sc In autumn, Scotland hosted Rugby World r o o r Player of the c e e Cup finalists Australia and semi-finalists The disappointment of that defeat d R Argentina at BT Murrayfield before was then put to bed in the final match Tournament nd 122 taking on arguably one of the world’s when a convincing, bonus-point win 2 year running most rapidly-improving sides, Georgia, over the visiting Italians put the Scots in 286 26 points at in Kilmarnock. contention for second place. Results, s ie tr Record crowds turned out to see however, conspired to see them miss out on their highest-ever placing, finishing Scotland’s rematch with Australia, Six Nations Six Nations however the hosts were defeated by a equal on Championship points with one-point margin in a thrilling encounter, Ireland and France (14) and fourth on 7 which saw score twice on his match-points difference. Scotland Debuts first start for Scotland. Winning the final match of the season Jones’ performances were again the was a fitting send off for Cotter, who made a considerable impact on talking point in the following test, this Huw Jones time creating the opportunity for Sean developing the Scotland team during Maitland to score, while Greig Laidlaw his three-year post. goaled five to secure a tense victory Scotland finished the 2016/17 season over the . and began Gregor Townsend’s tenure Scotland then rounded off the series with a 34-13 victory against Italy in in style, putting six tries past Georgia Singapore followed by an historic five- point win against Australia in Sydney in Ayrshire with scrum-half Ali Price Cornell Du Preez impressing on his debut as a replacement before rounding of the summer tour to create the final score. with a five-point loss to Fiji in Suva. On tour, they returned to their highest The sequence of improved performances ever World Rugby ranking of fifth, and results leading up to the RBS 6 which was first achieved during the Autumn Tests 2016 Nations gave the Scots justifiable but RBS 6 Nations. Scotland 22-23 Australia measured confidence. This feeling was backed up with an impressive opening Scotland 19-16 Argentina victory over Ireland in front of a full house 5 Scotland 43-16 Georgia at BT Murrayfield. British & Irish Lions Scotland’s most capped male player RBS 6 Nations 2017 Scotland were narrowly beaten by Scotland 27-22 Ireland France in Paris, before returning home 110 caps to dispatch Wales in front of a jubilant, France 22-16 Scotland v Fiji on 2017 summer tour capacity crowd – the 20 unanswered Scotland 29-13 Wales points in the second-half one of many highlights in the Championship. England 61-21 Scotland Scotland 29-0 Italy With title contention a serious possibility Huw Jones and Finn going into the penultimate round, Summer Tour 2017 Russell, Scotland v Lions’ top Greig Laidlaw Scotland put in an uncharacteristic Australia 2016 try scorer Allan Dell Scotland 34-13 Italy performance at Twickenham and succumbed to an England side in Australia 19-24 Scotland top gear. Fiji 27-22 Scotland

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 14 15 Scotland Women Scotland Women made great gains this season and enjoyed their most th successful Six Nations campaign in over a decade with victories over Wales 4 WOMEN’S Highest finish and Italy to finish fourth. SIX NATIONS 4 since 2010 The squad missed out on a place Scotland Debuts at the 2017 Women’s Rugby World Sarah Bonar Cup following two defeats in the qualifying matches against Spain Louise McMillan in November. Rachel Malcolm Determined to keep improving, Lucy Park 59 Shade Munro’s side overcame the A p s p e disappointment ahead of the Six earanc Nations and, with more training Women’s camps and competitive games, were H Six Nations Talented female players have more e a Record better prepared for the challenge of opportunities than ever before to climb t h All Six Nations e the Championship. the ranks with over 200 players supported r games streamed

Lo by the Performance Development ck Tracy They came close to holding Ireland hart Programme, for players aged between to a draw in their opening match at Balmer Chloe Rollie LIVE 16-20, the Performance Pathway and online for Broadwood Stadium, but a try in the last retired on Scotland Women the BT Sport . 1sttime play of the match saw the visitors clinch 43 caps v Wales Women 2017 the win four tries to three. E France away was also going to be by uro 2017 Women’s Six Nations g p u e Scotland difficult, but the squad rallied after the R Scotland 15-22 Ireland loss and proved their mettle with a st Women 7s remarkable comeback against Wales at France 55-0 Scotland 1 Scotland Women 7s got off to home to win their first Six Nations game Scotland 15-14 Wales a flying start under new Head since 2010. They clawed their way back Coach Scott Wight, winning from a 14-point deficit as scrum-half England 64-0 Scotland the Rugby Europe Women’s Sarah Law held her nerve to secure the Scotland 14-12 Italy Sevens Trophy. one-point win with a penalty goal as the 2016 Women’s Rugby clock wound down. They were unbeaten in both rounds World Cup Qualifiers in the Czech Republic and Hungary, Following another disappointing away Scotland 5 – 10 Spain where they lifted the trophy and gained match against England, they returned promotion to the Rugby Europe Grand to winning ways in their final test against Spain 15 - 10 Scotland Prix competition next season. Italy at Broadwood. Trailing by 12 points, Scotland came from behind and took Promotion puts the side a step closer to a two-point lead into the break via two the long-term strategic aims of qualifying Chloe Rollie tries and held Italy at bay for the HSBC Women’s Sevens Series and until the final whistle to record their first the Commonwealth Games in 2022. win against the Italians since 2009.

It marked the first time Scotland had won two Six Nations matches 2 12 since 2006 and showed how far the won Rhona Lloyd games played top try scorer squad has come in the past two 20 81 485 seasons following greater investment 10 tries Points from Scottish Rugby into women’s tries high-performance programmes. 5 New 12 Lisa Thomson The new structures to develop the next lost caps won Scotland Women generation of elite female athletes are 7 /1 6 12 40 6 Hannah Smith v Italy Women 2017 starting to pay dividends with young 01 BT Sport Players Conversions n 2 players reaching the level required for Seaso Academy Rhona Lloyd international rugby. Elizabeth Musgrove Players 0 lost

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 16 17 Scotland 7s

Scotland 7s enjoyed their most successful HSBC World Rugby Sevens Series in Scotland 7s celebrate winning the history, finishing seventh overall after winning the London tournament for the London 7s for a second year running. second successive year and collecting silver in Paris.

They also made history at Twickenham Scotland then defeated hosts England when they became the first Scotland 12-7 in the final with tries from Hugh team to beat a New Zealand side in 122 Blake and captain Scott Riddell as a years. The Scots came from behind in fitting send-off to Head Coach Calum dramatic fashion with four second-half MacRae and long-serving players Mark tries overturning a 0-21 deficit to make it Robertson and Scott Wight. through to the London quarter-finals. The weekend prior, Scotland picked up a silver medal in Paris, losing to eventual Series champions South Africa in the Cup final. That added to the bronze 31 they picked up in Wellington as well 58 won 27 games lost as the Challenge Trophy they won in played Hong Kong.

Over the year, Scotland 7s displayed a consistency which allowed them to James Fleming be competitive against all teams on 100+ and the circuit. World Series Mark Robertson Despite injury challenges mid-season tries they stayed on track and grew as a group with the younger players now in a better place for next year. Scott Wight MacRae has joined Edinburgh Rugby Top points scorer 500+ and John Dalziel will take over as this season – 266 World Series points Scotland 7s Head Coach, having led Scotland U20 to their highest ever World Rugby U20 Championship finish of fifth.

Next season, Scotland 7s will compete in st team in Scottish Rugby the HSBC World Rugby Sevens Series, the 1 history to beat New Zealand Commonwealth Games in Australia and the Sevens Rugby World Cup in USA.

ndo Lo n James Fleming st players Voted Players’ Player of the Year 174 26 used tries 1

58 games 10 full-time Edinburgh tries 32 1113 4 Rugby Points aris llingt BT Sport P e on 160 points W Finished 4 Academy 2nd 3rd 7th 114 Overall 3 BT Premiership conversions 3 Exiles Glasgow 2 Warriors Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 18 19

Scotland U18

Scotland Age Grades Ally Donaldson’s squad gained 32 players Scotland’s age-grade system develops the country’s best male and female valuable experience in this year’s players while also preparing them for the rigours of the international and International Series in Wales, professional game. competing against the tournament hosts, Italy and England across an The success in Georgia was a marked Scotland U20 eight-day period. The young Scots improvement from a disappointing Scotland U20 enjoyed another historic claimed a 28-22 victory over Italy in a Six Nations campaign, where the side season, epitomised by their successful close encounter and improved across recorded a sole victory against Italy in a World Rugby U20 Championship the series. frustrating tournament. campaign in summer. Scotland U18 International Series Under the guidance of Head Coach U20 Six Nations Scotland U18 6-22 Wales U18 John Dalziel, the senior age-grade side Scotland 19 – 20 Ireland Scotland U18 28-22 Italy U18 achieved their highest ever finish of fifth France 36 – 8 Scotland in the U20 Championship, improving on Scotland U18 24-45 England U18 Scotland 34 – 65 Wales their previous high of eighth. Andrew McLean, Scotland U18 England 33 – 5 Scotland An opening loss to eventual winners New Scotland 38 – 17 Italy Scotland U16 Reds & Zealand was Scotland U20’s only defeat in the tournament. A win against Ireland World Rugby U20 Championship Two U16 sides competed at the 2017 50 built momentum ahead of a second Scotland 20 – 42 New Zealand Colwyn Bay Rugby Festival against players victory over Italy, which secured a Welsh regional sides , RGC and Scotland 32 – 28 Ireland second-place finish in Pool B and a spot at Park Eirias in April. This was Scotland 17 – 16 Italy in the fifth-place play-offs. the second consecutive year where two Scotland 29 – 25 Wales squads involving 50 players from schools A late score was enough and clubs across the country were to avenge a heavy Six Nations defeat Scotland 24 – 17 Australia selected to provide opportunities for to Wales, and see Scotland through more young players to further develop n 201 to battle for fifth position in a duel so 6/1 ea 7 their skills and experience by playing against Australia. S against other prestigious youth sides. Once again the match was won in the closing stages, with scrum-half Charlie 34 Colwyn Bay Rugby Festival 2017 Shiel touching down for a vital double to players Scotland Blues 14 – 15 Dragons see his side break new ground. Scotland Blues 47 – 5 RGC Scotland Reds 53 – 0 RGC Harry Mercer, Scotland U16 25 Scotland Reds 27 – 19 Scarlets Academy players Scotland Women U19 7s

The women’s development side 12 Scotland U19 represented Scotland at the School players Development Games in rugby sevens for a fourth 5 5 losses wins 40 year in September. Coached by The development squad players Scotland Women players Megan is an extension of the Gaffney and Lindsey Smith, they came BT Sport Scottish Rugby up against regional Welsh, English Academy, and is used as a platform and Irish teams and gained valuable to give players international age-grade th experience against some strong experience, with a view to preparing 5 opposition. They finished 8th overall. Darcy Graham them for further Scotland honours. World School Games 2016 Scotland U20 Rugby U p Scotland U19 Development 2 i Scotland 5-43 England South East v Ireland U20 2017 0 sh 226 Ch on ampi points Scotland U19 17-21 Georgia Scotland 0-27 Wales East scored Scotland U19 7-24 Scottish Students Scotland 0-25 England North 32 Scotland U19 19-7 Scotland U18 Scotland 0-36 England South West tries

2016/17 2016/17 Scotland 5-37 England Midlands Erin Haldane Scotland 0-38-Wales West Scotland Women U19 7s

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 20 21

Glasgow Warriors A record Ali Price Glasgow Warriors v (23-7) Glasgow Warriors enjoyed their best European campaign, reaching the quarter- finals for the first time while selling out all 14 home games at 101,889 fans walked through the , another first for the club. turnstiles as a new community stand Bonus-point victories away to Connacht increased capacity to and at home against Leinster in the Guinness PRO12 got the season off to a 7,351 positive start ahead of hosting Tigers to kick-off their Champions Cup campaign. Glasgow ran in five tries to win 42-13 – a sign of things to come in their European run. 4,839

With the squad depleted by the autumn internationals, Glasgow struggled to find Record Season form in the Guinness PRO12 losing three Ticket Sales league games in a row before travelling to Paris to face French champions 3 Racing 92 in Europe for the second British & Irish successive season. Lions

An historic 23-14 victory at the Stade Yves 54k 57k 29% Du Manoir was bettered in the reverse 20 2 represented Won followers followers increase fixture the following week at home, Finn Scotland London 7s Russell pulling the strings to outshine Dan 250k Carter as Glasgow won 23-7 to record views Tommy a double over the previous season’s 53 4.4k 32k Champions Cup finalists. Seymour Glasgow 5 subscribers followers Dave Warriors BT Sport Guinness PRO12 A ferocious battle against Munster in the Rennie Academy Dream Team J Graduates New Year saw Scotstoun host a game o 8 Dave Rennie joined as Head Coach from in / 1 147,057 of test match intensity, the Irishmen in g 0 1 7 Super Rugby side the , alongside 2 social media fans snatching victory late on, meaning former Scotland coaches Jason Glasgow needed to travel to Welford New players signing ahead of next season include Huw Jones, Oli O’Halloran and Jonathan Humphreys. Road the following week and win. Kebble, Callum Gibbins, , Lelia Masaga, Samuela Kenny Murray and Mike Blair are staying Vunisa and . Stars such as Stuart Hogg, Tommy The match in Leicester will go down as on as Assistant Coaches at Scotstoun, Seymour and Alex Dunbar have extended their contracts. one of the greatest in the club’s history, 88 with Blair also forming part of Townsend’s teams with the 43-0 victory against the two-time Scotland backroom. e from sh European champions securing Glasgow’s A Off the pitch, the club has continued to m place in the last eight for the first time. a d grow with new sponsors Land Rover, Black A 53 Drawn against the reigning champions, & Lizars, Story, and Martha’s joining the clubs & Schools Glasgow travelled to face Saracens in the family of sponsors, which is now 33-strong. 50 played on quarter-finals with 6,000 supporters behind hours match days An extra 600 people enjoyed Glasgow Warriors Championship them, but the hosts were too strong and community Warriors hospitality this season, with the ended Glasgow’s memorable journey. coaching Nominated for Harper Macleod Club Deck selling out Grassroots Sports Sponsorship Glasgow’s Guinness PRO12 campaign at all 14 games plus additional off-site Always at UK Sponsorship Awards A Warrior did not meet expectations and despite hospitality for four. ett nn campaign launched to getting off to a postive start with bonus- e Winners B The new artificial pitch allowed more promote public transport to point wins against Connacht and k Shawlands Academy r 32 community activity. The ScottishPower a Leinster, the side missed out on the top M hours 688 Warriors Championship, new Wee four after finishing sixth. community player SCOTSTOUN STADIUM Warriors’ rugby skills coaching, Scottish 20 Tommy Seymour, interaction appearances schools Following five years at the helm, Head Rugby Girls’ School Cup finals and Scotland and Coach Gregor Townsend moved to the Scotland Women’s Rugby World Cup British & Irish Lions Scotland set-up ahead of the summer qualifier against Spain were among the 560boys 280girls tour, taking Assistant Coaches Dan additional matches held at Scotstoun McFarland and Matt Taylor with him. this season.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 22 23

Edinburgh Rugby WP Nel Edinburgh Rugby Edinburgh Rugby experienced a season of transition while achieving an 100 Tom Brown v Harlequins (36-35) impressive run in the European Rugby Challenge Cup which saw them reach Edinburgh Stuart McInally the knock-out stages. Caps

Head Coach Alan Solomons departed early in the season making way for Phil Burleigh Assistant Coach Duncan Hodge to take Neil Cochrane charge on an interim basis, alongside Sean Kennedy 50 Edinburgh Defence Coach Pete Wilkins and Rory Sutherland Caps Forwards Coach Stevie Scott.

The turn of the year marked a change Edinburgh Rugby in venue too, moving away from in the Community BT Murrayfield to host six games at Supported Tomorrow’s People, Myreside in partnership with George Cyrenians and Prince’s Trust Watson’s College. The trial move was deemed a success, 527 18 with sell-outs in the opening two games children Edinburgh 1 British & Irish against Timisoara Saracens and Munster, attended Rugby Camps and positive feedback from supporters, Lion Edinburgh Rugby Community players, coaches, local residents and A lla ell other key stakeholders. Team spent 14 weeks working 11 n D 2 with a group of 20 children at represented Won HSBC On the field, a hugely promising start Castlebrae High School Scotland London 7s to European affairs saw Edinburgh top Over their group with five victories from six, took part in the Guard including wins over Harlequins, at home 300 of Honour at games 42 children Ben Toolis Edinburgh 6 and away, and eventual Challenge BT Sport Guinness PRO12 Rugby 39k 29k 24% Cup winners Stade Francais. La Rochelle Player Academy Dream Team followers followers increase ended their European run when the 688 Appearances Graduates J o 8 French side visited BT Murrayfield in the in /1 69k Edinburgh Rugby has grown ing 2017 quarter-finals. views commercially this season with new Looking ahead to next season, the club made several The shine and positivity surrounding their sponsors joining the family of partners, 1.7k 13k important new signings including Robbie Fruean and secured subscribers followers European endeavours was countered including 2020 Productions, Scrum key players, including Scotland caps Allan Dell, WP Nel, Hamish by a disappointing domestic campaign Magazine, Miller Homes, Actavo and Watson, John Hardie and Magnus Bradbury. in the Guinness PRO12. Despite notable Crabbie’s, alongside a wider Scottish wins against Scarlets, Ulster and Glasgow 81,617 Rugby partnership with Eden Mill. Key social media fans Warriors, the capital club finished in sponsor renewals included Mitsubishi ninth place. Motors and Village Hotels.

On the international scene, 11 Edinburgh The Edinburgh Rugby Business Club was Rugby players featured for Scotland 24% s successfully relaunched, with several h r t o s this season and Allan Dell was called blue-chip organisations joining, including w 6 n o o r p up to join the British & Irish Lions in G s Anderson Strathern, Hampden & Co. al w rci ne New Zealand. Bank and Shepherd and Wedderburn. Comme 3 4 Scotland debuts The backroom set-up was also from 10% refreshed with the highly sought-after Edinburgh Rugby increase in Simon Berghan Richard Cockerill - a three times English Business Club Business Club Magnus Bradbury Premiership winning coach with Leicester Membership Tigers - taking on the role of Head Allan Dell Coach. Duncan Hodge (Attack Coach), Ben Toolis, Scotland Cornell du Preez Calum MacRae (Defence Coach) and key sponsor renewals, Roddy Grant (Assistant Forwards Coach) 2 including a long-term deal 40 also took up their positions at the end of with Mitsubishi Motors Richard in total the season. Cockerill

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 24 25

l Former BT Sport Scottish Rugby ke BT Sport Academy n Academy Players o K e Over 1,500 male and female players were supported by the BT Sport Scottish d a Rugby Academy this season from early talent identification camps to preparing J players for professional rugby. Jade Konkel joined Lille Metropole Launched in summer 2015, this year’s 12 players helped Scotland Women Rugby Club Villeneuvois (LMRCV) selection included 90 Stage 2 and 3 achieve two memorable victories in the ahead of next season following a male and female players, based at one Six Nations – their first since 2010. partnership between Scottish Rugby of four regional centres in Caledonia, and the top French club. She will A further 32 played for Scotland age- Glasgow & the West, Borders & East remain a Stage 3 BT Sport Scottish grade sides during the season and four Lothian and Edinburgh. Rugby Academy player. competed for Scotland 7s on the HSBC They continued to play regular school Sevens World Series. A l d or club rugby alongside attending the i n Pr la Each of the Academies continued ice ot BT Sport Academy where individual ca r Sc to find regional solutions to regional pped fo programmes were developed, delivered problems but all were driven by the and monitored by Academy staff. national framework and three key Twenty seven players were contracted pillars of player development - high Edinburgh Rugby at Stage 3 and linked closely to either performance behaviours, rugby and Glasgow Warriors Murray Glasgow Warriors or Edinburgh Rugby, athletic capacity. McCallum which offered opportunites to develop Lewis Wynne Additional support and expertise Callum through both training and playing. Matt Smith for players were provided by our 11 Hunter-Hill George Horne A further development this season partnership with the sportscotland BT Sport Scottish Ally Miller Patrick Kelly involved a partnership with London Institute of Sport around performance Rugby Academy Hugh Fraser d N n Scottish, which saw seven BT Sport lifestyle, performance psychology and players going pro Darcy Graham i a ck tl G co Academy players join the Championship performance nutrition. in 2017/18 Tom Galbraith rig r S g ca d fo side as part of their individual ppe Scottish Rugby also entered a three- programmes. year partnership with the Royal Marine ional Se Through the regional early talent Commandos to assist the development g rie e s 90 R identification camps, over 1,000 male of its top performing individuals and Stage 1 & 2 Academy Players and female U14, U15 and U16 players teams. v W ntif st es Ide ica Ea t t tio were given more opportunities to 385 n n e This new relationship will support l male players a C T a become better rugby players throughout m the governing body to enhance y U l

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a 37 and Edinburgh Rugby c opportunities for our next generation contracts at clubs, including Glasgow A clubs and Edinburgh v Borders Warriors and Edinburgh Rugby, while schools & East Lothian U20 of players.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 26 27

Following a review during the previous evel 1 L Youth Coach of the Year season, and with the support of Coach Development Level 2 sportscotland and the Winning Scotland Level 3 Stirling County’s Matt McGrandles was Coaching is central to developing, sustaining and increasing participation in rugby match officials Foundation, the Positive Coaching Level 4 awarded Youth Coach of the Season and improving performance at all levels. Scottish Rugby is committed to developing Scotland programme took on a new for his continued development of a quality game by supporting clubs and schools to develop coaches. coaches 5,200 teachers look this season. youth rugby at the club, coaching users UKCC two U18 teams to the top end of their New training programmes were created Coaching respective Conferences and steering and delivered to all Tier 3 Conference Courses cottish W 400 3,500 the U18 A squad to National Youth e S ay clubs and schools, aimed at upskilling

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Coach of the Year Three mini rugby coaching conferences were held for the first time Continuity attack workshop in Orkney with former to support coaches developing young players. The 110 attendees Scotland players and Calum Forrester of Ayr was received updates on physical competency, age grade law variations, , to a breakdown session awarded Coach of the Year for his principles of play and mini rugby session structures. in Melrose with Edinburgh Rugby coach development and desire to broaden Roddy Grant. his coaching knowledge through his UKCC Level 4 coaching qualification This season saw the largest intake The Scottish Way and hard work developing the club’s of coaches onto the UKCC Level 3 2nd XV and U18 squad to progress its Technical Blueprint qualification – 41 in total. With a high level most promising players. He led the of applications received, and a growing The Scottish Way Technical Blueprint 1st XV to BT Premiership victory, where demand for the course, two separate is an overarching set of principles his side won 17 from 20 games in courses were delivered this season. aimed at improving the quality of regular and play-off fixtures. He also rugby in Scotland and was developed Scottish Rugby’s largest National guided them to the final of the BT with input from club, school, Coaching Conference, saw over 160 Cup, with Ayr scoring a total of 113 age-grade and professional coaches. coaches hear from seven presenters and tries throughout the season. three keynote speakers at Edinburgh It was launched in September 2016 Napier University including World with 324 people attending eight Rugby’s Lead Scientist, Dr Ross Tucker, regional workshops and has been on the science behind player welfare, a catalyst for change in many areas and Scotland Women’s Football Head of domestic rugby, including the Coach, Anna Signeul, who gave an development of the revamped UKCC insight into changing environments and Level 1 and 2 coaching qualifications, her coaching journey. All of the sessions and an enhanced coaching were made available on the Online workshop programme. Training Hub.

Calum Forrester

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 28 29 Cup Finals Club Rugby Day 2017 Success at Stewartry The hard-working rural club in Dumfries Creating sustainable clubs to ensure rugby thrives in Scotland remains our We were delighted to welcome & Galloway were awarded BT Club of focus as we continue to increase investment into the grassroots game and Scottish Rugby’s Patron, Her Royal the Month for February, recognising raise the standard of play across all levels. Highness the Princess Royal, to the their performance and development. Club Sustainabliity Fund Streamlined Application BT Cup Finals Day, which was revamped Performance, participation and finance million following feedback from clubs. are the key components of Agenda 3, We have a lot of people over 4 years million BT Premiership winners, Ayr £1.6 £2.4 our new three-year strategy launched behind the scenes men’s women’s accessed from the this season to further support clubs whose work is generally awards to clubs 3 finals 3 finals sportscotland across the country. unrecognised outside of the 122 first 3 years lottery fund club so we see this There are now over 100 clubs actively Capital & Revenue awards finals on as a tribute to them working with Scottish Rugby’s regional £10k - 60k 4 international 12 on the whole. 32 Club Services Managers to deliver pitch at BT teams business plans to help clubs develop their Murrayfield Fast Track awards off-pitch activities such as generating Eric Fenwick, Stewartry President 90 up to £2k income, sponsorship and community million involvement. The 1st XV were crowned BT West project Division 2 champions after recording £13 To help clubs engage with their costs so far just two losses this season, while their members and surrounding community, youth section continues to flourish. social media workshops were The Stewartry Sirens finished fourth introduced with 90% of those surveyed in their maiden season in the BT Made possible through our partnership with BT, valuing the sessions as extremely or very Women’s Premier League and lifted the four-year fund enables clubs to generate revenue relevant to their club. the BT Women’s Plate. and improve infrastructure with major projects being completed The Director of Rugby course was this season at Biggar, Selkirk and Stewartry. February also saw the opening rolled out for a second season to of their £100,000 strength and help people in the post lead and conditioning facility, which received 12 clubs manage all elements on the pitch, investment from Scottish Rugby’s have had Business Development Manager posts such as coaching, medical, strength & Club Sustainability Fund and funded to increase income and grow membership. conditioning, nutrition and liaising with sportscotland. The club hosted other sections in the club. various coaching courses and helped fund a Development Officer in partnership with the Dumfries & 447 £20 summer Galloway Council. passes sold £3 Student per session Rugby or BT Cup winners, Melrose 32% or increase since 6,000 2013/14 supporters at BT Murrayfield The launch this summer of a simple, Scottish teams + mixed, social form of non-contact rugby in BUCS leagues 28% 7-7 5 45 for all ages is another tool to help clubs women years old & girls 6 teams prosper in a traditionally quiet period of + this year the season and attract new members.

Student rugby BT Cup & Sarah Beaney Cup continues to finals streamed live on 75k Tartan Touch has so far exceeded Embraced by More than develop with Scottish teams enjoying Scottish Rugby Facebook expectations thanks to a successful views national success in the British marketing campaign. Universities & Colleges Sport (BUCS) Broadcast coverage of leagues. University of Edinburgh Women BT Premiership & BT National 4k collected three titles and the men’s 1 leagues increased with 20 1,700 Next summer will see more hub Trophy final was an all-Scottish affair, weekly highlights show views with University of Glasgow overcoming clubs as well as universities BT Women’s Plate their Edinburgh counterparts. hosting sessions to encourage hub clubs players have winners, Stewartry entry level rugby participation. across Scotland taken part so far

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 30 31 Women & Girls Scottish Rugby is committed to improving and growing the women and girls’ game by providing more opportunities to play, coach and referee rugby. 8% Progress has been made under the Girls increase National Strategy for Women’s and Girls’ Rugby to raise participation and visibility, while performance structures are now The campaign to highlight the positive producing winning teams. benefits of playing rugby and to % encourage women to join a team was Following growth in the number of female 24 successfully launched with ten clubs teams, the focus is on developing youth hosting free, taster sessions for beginners. Women increase competition structures to take the girls’ Clubs across the country are set to host game to the next level with increased a series of pre-season beginner’s sessions opportunities driving the standard during summer, while the second phase of play. EVERYONE’S of the campaign targeting secondary GAME Girls across Scotland played in more % school girls will be rolled out in the 11 first term. regular competitions this season. The scottishrugby.org/bestyou increase introduction of the Girls’ Club Cup, More Women’s & Girls’ Teams women & Girls * compared to 2015/16 Girls’ School Cup and Girls’ President’s Conference saw the number of preparing the next generation for the Triple Crown competitive fixtures grow by 210% and rigours of the international game. Edinburgh University Women were is set to rise further still as more girls’ crowned the best university women’s conferences are established over the Over 200 of the most talented female rugby team in Britain when they won coming seasons. players were directly supported by Scottish Rugby this season. The the British Universities & College Sport Women’s rugby is also in good health, Performance Development Programme (BUCS) title at Twickenham. They with nine new teams moving into for players aged 16-20 had a were the first Scottish team to reach competitive leagues, four of which successful first season and the BT Sport the final in 19 years and featured a make up the new BT Women’s North 1 Scottish Rugby Academy Early Talent range of talent from beginners to League that has had a major impact Identification was also established. The Scotland Women players. As well on women’s rugby in the north of development of our elite female athletes as winning the most prestigious Scotland. A further 12 teams competed continued in the BT Sport Academy competition in student rugby, Claire in the National Development League in Stage 2 and 3 programmes and the Cruickshank’s side also won the preparation for competitive rugby. Performance Pathway. BUCS Championship Sevens and the Increasing the quality and quantity of BUCS Premier North League. A new female coaches in club, school and From the Pitch to the Scottish University BUCS league was Scottish Rugby Boardroom established with four women’s teams performance rugby was the impetus Edinburgh University playing this season. A further two BUCS behind a new female coach mentoring Women teams are set to enter next season. Champions programme. Claire Cruickshank, female Board member Louise Dalgliesh and Sarah Quick were Lesley Thomson 1 BT Sport Academy selected for the programme which will Performance Programmes Stage 3 Player develop their technical, tactical and 1 2016/17 theoretical knowledge.

Progress has also been made in BT Sport Scottish Rugby female match officials with 179 women 2 14 Academy Stage 2 Players Dee Bradbury Female Council refereeing games this season - a 40% & Rosy Hume Members Charlotte Runcie increase compared to the previous Performance Watsonians season. The appointment of Hollie Pathway Players Davidson as Scottish Rugby’s first 42 contracted female referee ahead of next season was a major step forward. Performance Development Programme for U16 - U20 players Structures for elite female athletes are 50 female Vice President making an impact on Scotland Women st 1 Dee Bradbury and Scotland Women 7s, while also BT Sport Academy 100 Early Talent Identification players Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 32 33

Conferences 2016/17 Schools & Youth Clubs & Player welfare schools working The Schools & Youth Conference programme has gone from strength to 156 93 26 together to grow Schools Clubs Schools at the forefront strength this season, with more boys and girls playing regular competitive (State) (Independent) of all that game & improve Development Officer rugby across Scotland. we do standards 81 partnerships funded Mitsubishi Motors has come on board of play as an Official Partner of Scottish 14% Rugby, supporting all levels of the increase 16,741 game. The Japanese car giant will in schools & clubs Secondary School Emphasis help drive youth rugby forward as More players Sessions based on the playing more

the title sponsor of the Schools & Rugby Sessions long-term player Youth Conferences. 77% 14% competitive fixture more development 10,828 rugby more C s o Launched in 2015, the Conferences fulfilment conferences e process Primary School often n l fe ip Sessions provide a framework for clubs and re c nce Prin schools to work together to grow the game and improve the standard of Tiers 5,201 play. Player welfare remains at the core, Club 32,770 as the emphasis is firmly on long-term conferences delivered by Development Officers Sessions player development. 1-3 12

Clubs and schools are appropriately Schools, clubs or Girls’ President’s Conference grouped together based on their communities compete Six clubs from across the country development structures and number across all age groups on competed in the first edition of the of teams, to continually improve the the same day or weekend. Girls’ President’s Conference at U15 playing environment. Competition points are awarded to and U18 levels with Stirling County Scottish Rugby and its development each match allowing every team to and Biggar sharing the honours. network coordinate matches to contribute to their club, school or This was a step forward for the girls’ guarantee blocks of fixtures across community’s success in the overall game as regular competition has all age groups from U13 to U18 with Conference table. Eight boys and eight girls from across Scotland were selected for the new accelerated the development of compatible clubs or schools throughout Youth Panel this season, which acts as a voice for young people within Scottish girls’ rugby with the standard of rugby the autumn. Rugby to inform the development of schools and youth programmes. visibly improving across the season. An additional 35 state schools entered Tier The conference has been a catalyst the Conferences this season, meaning for clubs to increase the number of conferences over 156 state schools, 26 independent 27 4 training sessions and introduce strength schools and 93 clubs participated. £750k and conditioning and video analysis. Entry level for clubs of investment This has seen players start to adopt high There was a 20% increase in the and schools organised supported by performance behaviours for the future. number of games played and a Girls’ on a local or regional basis to President’s Conference was added to 343 Next year, the conference will play in appropriate age-group or the programme. be developed further alongside conference-style competitions. additional regional conferences to Encouraging feedback from coaches, street rugby create a lasting and positive impact players, teachers and parents combined The boys and girls schools and club cup 30 sessions on the women’s game. with the impressive playing numbers competitions were well-attended events Schools paint a promising picture so far. displaying a high standard of rugby. 31% involved 27% The conference has increase in increase in This success has been possible due to Congratulations to all the Cup and escalated the status of Registered players teams the commitment of staff and volunteers Conference winners and good luck for the girls’ game for the 2016/17 2016/17 across the schools and youth game. next season. 806 players and stakeholders. Thank you for your valuable support. Scottish Rugby is committed to ensuring young people It’s allowed us to signpost fixtures months However, this is just the beginning and player welfare remains a priority for all completed in advance and we’ve there is plenty of work ahead to continue involved in the coaching and running Youth Coaching benefited from better developing the schools and youth game of youth rugby. We have continued to Course player and spectator to help support sustainability across the engage with clubs to ensure all coaches attendance. wider domestic rugby landscape. and volunteers working with children have completed PVG checks. Deon Van Schalkwyk, Cashback Schools of Rugby Stirling County U18 Coach 2014-2017 Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 34 35

Qualified Match Officials Level 1 Referees Match Officials Match Official by Region Trained in 2016/17 Level Male Female Scottish Rugby aims to provide a pathway for anyone who wants to become Analysis Society District District 1 Club Officials Officials 7,480 a match official, while the six referee societies remain the backbone to our Officials The Match Officials department Officials Domestic Match Offical domestic game. Borders 36 1 will further develop match officials Appointments Borders 137 50 Scottish Rugby’s Match Officials through the Team Performance Edinburgh 86 16 department provides knowledge, skills Analyser (TPA) and Team Performance Edinburgh 422 116 Caledonia 94 20 and professional support to the referee Educator (TPE) online programmes, societies to develop, appoint and train which provide coded video analysis Caledonia 487 136 West 158 15 match officials. of BT Premiership and BT National 1 West 812 143 Total 374 52 games in Scotland. The evidence- There were over 2,300 qualified based review process allows clips to referees in Scotland this season but as be created from games to measure the workload of referees continues to referee performance. Referee challenge the current resources, more decisions can also be discussed with people need to be recruited to this match officials following games. The

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c i having made the transition f remains a priority with over 400 people match officials at the top levels of the f 2,303 o from player to match official. completing the Level 1 course this season. domestic game. h c Q t I’ve enjoyed refereeing from the u a al m Continuous personal development is For the first time, all four women’s BT Cup moment I picked up the whistle. ifi h ed Scottis offered to all qualified match officials Finals at BT Murrayfield were officiated Although you are out on the park in Scotland through the new Online by females. Special mention to Alex solo, there is a real team ethos Training Hub, powered by Hive Learning. Haskett on her first appointment to the among match officials, whether Clips and discussions are posted online Sarah Beaney Cup final. you are part of a referee society 1,858 each week to ensure all referees can Level 1 Club The appointment of several Scottish or go up through the ranks and develop throughout the season. Officials match officials to professional become an elite referee, the More women and girls took up refereeing competitions this season indicates support to succeed is available. 445 progress over the past three seasons. Society this season with an additional 52 women Hollie Davidson boosting the total number of female Officials The EPCR Continental Shield final at Scottish Rugby Referee match officials to 179. BT Murrayfield was officiated by an all- Scottish Rugby took a major step Scottish match official team, with Mike forward when former Scotland Women Adamson in the middle. U20 player Hollie Davidson became the Neil Paterson was appointed TMO to Professional Rugby Referee Appointments first female contracted referee following 14/15 15/16 16/17 the Guinness PRO12 final and to two test an outstanding season, which saw matches in the June international window. her involved in the HSBC World Rugby Women’s Sevens Series and Rugby World Rugby appointed Andy Clift Europe matches. as performance reviewer to five test matches and appointed Adamson, There is a great buzz Andrew Macpherson and Charles in sevens after a Samson to officiate in the 2017 World hugely successful Olympic Rugby U20 Championship in Georgia. 5 7 15 9 14 23 11 10 31 debut and it’s fantastic to be Scottish Rugby’s current positioning World Rugby International Sevens EPCR & PRO12 involved in it. It’s a huge honour internationally is in line with the goal of & Rugby Europe Tournaments Tournaments to be able to represent Scottish Scottish match officials being appointed Rugby on the world stage to officiate in Rugby World Cup 2019 where the environment is fast and the 2020 Olympic Games in Japan. We are three years into the High Performance Referee Project and David Sutherland was awarded paced with so many learning results are positive. In the season before the programme started, Referee of the Season for his ability and development opportunities. seven Scottish Rugby referees were appointed to Guinness PRO12 to perform both at the top tier of Sam Grove-White Refereeing the 2017 final of the matches based on merit, compared to 15 this season. Our EPCR domestic level rugby and age-grade Hong Kong 7s is something I and World Rugby appointments have dramatically increased the internationals, while also supporting will never forget. visibility of Scottish referees on the world stage. the BT Sport Scottish Rugby Sam Grove-White Dave Pearson Academy in the West and assisting High Performance Referee Manager elite referees at EPCR matches.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 36 37 Chief Operating Officer’s Report

Our results off the pitch have again exceeded expectations as we continue to grow our three main revenue streams of ticketing, sponsorship and broadcast allowing Scottish Rugby to increase investment into the grassroots game.

Total Scottish Rugby crowds

Turnover Up 597,422 M M £4 Turnover is at a record £51.4 million £51.4 Scotland thanks to increased ticket, broadcast 332,812 and commercial income this season. Up 25%* including three sell-out We have welcomed a record number of Ticketing RBS 6 Nations games fans to matches this season with nearly ADMIT 600,000 people attending international M ONE Glasgow Warriors and professional rugby games. We £12.6 We were delighted to welcome Mitsubishi Motors as *Compared to 2014/15 Highest experienced our most successful season our Official Car Partner and Official Partner of the number of yet for Scotland crowds with three sell- Schools & Youth Conferences, to help raise the profile 101,889 Season out RBS 6 Nations games, a first for Up 22% of the great work being done to develop our next generation of players. Passes sold 10% EPCR Finals Scottish Rugby following record autumn increase test sales. Broadcast The Guinness PRO12 developed its To address this, we are working on Scotland 79,866 Creating a world-renowned match-day commercial and brand focus this various international projects. £13.3M season culminating in a record crowd experience at BT Murrayfield is something Globalising our brand to attract overseas Edinburgh Rugby for the final. We are working closely with 15,260 we pride ourselves on with fans coming investment and grow our fan base is their executive to grow the competition 2016/17 to the ground early and staying late – critical. We have strengthened ties in 78,176 even further. over a third of fans now enter the ground Up 7% the US, Japan and Singapore markets. 14k in 2015/16 | 10k in 2014/15 more than an hour before kick off. Our family of sponsors continues to Rugby World Cup 2019 in Japan offers Scotland Women Commercial & Scotland U20 Demand for Season Passes continues grow with a range of diverse brands an unprecedented opportunity to take to rise with record numbers selling for £11M who assist in enhancing the match- the Scottish Rugby brand into Asia. Our Scotland and Glasgow Warriors. All day experience, including our principal ties with Nagasaki, who will host the 4,679 fans at Robbie at three Six Nations 14 games at Scotstoun sold out while partners BT and . Scotland team ahead of the World Cup, have already been beneficial. 50k Williams concert double-headers Edinburgh Rugby enjoyed a full house Thanks to Macron’s innovative designs when they moved to Myreside at George Other and quality, this season’s Scotland, Playing the first tier 1 match in Singapore ticketing, facilities, media, corporate Watson’s College in the new year. Edinburgh Rugby and Glasgow Warriors against Italy to kick-off Scotland’s 2017 affairs and business services teams, Not only are more fans flocking to £14.5M £ merchandise was well received by fans summer tour raised further our profile in as well as those leading the off-field Scottish Rugby events than ever before, Down 24%* with record retail sales. Asia and demonstrated Scottish Rugby’s activities for Glasgow Warriors and *Non RWC year desire to be innovative and at the our broadcast reach continues to grow Eden Mill joined as the Official Gin Partner Edinburgh Rugby. with Scotland games broadcast to Champions Cups. Away from rugby, forefront of new initiatives. of Scottish Rugby, Glasgow Warriors Our family of sponsors, including our millions of fans worldwide and hundreds Robbie Williams entertained over 50,000 and Edinburgh Rugby in a significant Back on home soil, plans to build a principal partners BT and Macron, also of thousands of fans interacting with us fans in June. sponsorship deal expanding the drinks hotel at BT Murrayfield are progressing, contributed to our success this season. daily across social media. Our estates team have once again options for our ever-growing number of as we look at new ways to utilise the Thank you for your ongoing support Utilising our facilities, including BT done an exceptional job of delivering female fans, who now represent more stadium, which now needs considerable across all levels of rugby in Scotland. Murrayfield, to generate revenue world-class environments across sites than a third of our total supporter base. investment following its redevelopment 22 years ago. remains a focus for our team. in Scotland for more than 80 matches While our commercial growth is going Dominic McKay BT Murrayfield attracted nearly 80,000 and events. Significant progress was also from strength to strength, we need to I would like to thank everyone involved Chief Operating Officer, fans from across Europe to watch the made in the management and delivery be innovative to diversify and deepen in making this season’s success possible, Scottish Rugby three EPCR finals seeing Stade Francais of Glasgow Warriors and Edinburgh our revenue streams to ensure the including our dedicated and passionate and Saracens lift the Challenge and Rugby training pitches. game is sustainable at all levels. events, retail, sponsorship, marketing, Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 38 39 Globalising Our Brand Connecting with Fans

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million fans 2,142 2.8 Scotland Supporters highest peak audience of all home Club members unions for Scotland v Australia in 22 countries Games around the World 13 LIVE Streamed million All Scotland total Women’s Six Nations scottishrugby.org 23.2 fans views games streamed 1.8M unique visitors 187k in the UK watched Scotland’s RBS 6 Nations matches Scotland Scotland scotlandteam.com BT Cup LIVE unique visitors Women U20 online 1,000 182k 3 3 3 Scotland Season Glasgow Charity Varsity Pass & Supporter Warriors Shield Club fans attended 2 1 1 WOMEN’S SIX NATIONS

Scotland Debenture, Season 2 Scotland Pass & Supporters Club Fans Training Sessions #AsOne 250 attended an ‘Evening with Vern Cotter’ during the RBS 6 Nations 12.9k 232k 610k 76k 289k subscribers followers total followers followers followers

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Countries: UK, US, Australia, 2.4k France, Italy, average likes The new Caledonia Best Up & Under Bar enhanced Crabbie’s expanded their partnership and is now the Official Canada, per post BT Murrayfield this season and was a resounding success Sponsor of Scottish Rugby’s match officials. Referees New Zealand, with up to 480 fans enjoying it on match days. across the country will wear Crabbie’s branded kit. Spain, Ireland over 6k average views per Snap Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 40 41 Looking after our People Looking after our Players

Scottish Rugby’s greatest asset is our people. Our HR programmes are aligned to support our organisation and ensure Scottish Rugby recognises and understands the significant social and health benefits that the sport delivers for its we can successfully perform within a continuously changing environment through competent, motivated people and players. However, rugby is a contact sport and as such player welfare is the number one priority. strong leadership.

ork Driving Culture w Player Welfare & Law Updates Child Protection Investing in Research e Obituaries w e HR has focussed on embedding our r Update on concussion All sports, including rugby, should be a e Scottish Rugby is saddened to reflect values across all processes in addition h management and anti-doping positive and fun experience for children. W on the passing of some notable rugby to development activities. Culture Scottish Rugby is committed to ensuring talent in the past year. Our sympathies Law amendments and themes remains a key focus; a positive, aligned all children feel safe, enjoy their rugby 72% to all from the rugby family who lost for season ahead culture guides behaviour and decision Scottish Rugby and are protected from harm. loved ones during the past season. making in a changing environment. Regional workshops held at clubs in August 2016 Frans Herman ten Bos 3 Learning and Development Objectives (Oxford 11% University, London Scottish and Create a sustainable organisation while 8% Scotland) to be held this summer growing our business. 17 Scotland caps from 1959-1963 Aberdeen University BT Sport 6 following a positive response Continue to enhance our bespoke 9% Died 1 September 2016, aged 79 Edinburgh Academy Supported ground-breaking research on Target Outstanding Performance Rugby nerve injuries since 2014 Management Programme, which won Glasgow Scrumcaps William John Ferguson Hunter the Talent Management Programme of Warriors (Hawick, the South and Scotland) Developed by Scottish Rugby over the Year award 2016. 7 Scotland caps from 1964-1967 ten years ago to train qualified Scottish Rugby recognises that all adults Tailored Child Protection training 69% 31% Died 20 September 2016, aged 82 medical staff in advanced involved in the coaching or supervision Edinburgh Napier University programme and Player Assistance male female pitch-side care, this course is of children have a duty to safeguard Programme developed. World Rugby Level 3 approved. Three-year funding partnership for two Thomas Johnston Inglis their welfare. This duty extends to Health & Safety PhDs in concussion and using monitoring Fully-funded by Scottish Rugby to Continued bespoke training and (Helensburgh) the prevention of physical, sexual or data to improve player performance development for specific departments • Introduced training and Former member of the Scottish drive player welfare and care emotional abuse of any child and will be and roles. e-learning courses approved Rugby Board (2005-2007) Up to 140 medical staff are applied regardless of a child’s gender, by the Royal Society for the Died 18 November 2016, aged 75 trained over a two-year cycle, race, religion, sexuality or disability. Prevention of Accidents with two full courses and two Child protection in sport is not just about University of Strathclyde • Safety measures for staff who carry Ian Allan Alexander MacGregor refresher courses annually protecting children from others who may out lone working being reviewed Part-funding business school PhD in (Hillhead HSFP, and Scotland) Medical staff working in seek to harm them. A trusted coach to prevent unnecessary risks and data and information management 9 Scotland caps from 1955-1957 professional, international, or leader may be the person a child create robust reporting procedures using player data for injury prediction Died 29 November 2016, aged 85 age-grade & BT Premiership chooses to tell about something that is modelling happening at home or outside sport. In • 12 first aid staff and five defibrillators teams are Level 3 certified Reward, Recognition and Performance either case, we all have a responsibility at BT Murrayfield Framework James Hugh Hay (Ayr) to act on concerns. • Health and Safety awareness Former Scotland and Glasgow A framework of reward structures and Child Protection and wellbeing is of training for Community team doctor University of the West of Scotland performance management processes paramount importance to Scottish Coaching staff Died 10 January 2017, aged 76 and metrics helps ensure our employees The minimum standard online training Rugby and we have a dedicated team Involved in a post-graduate research can contribute towards success at Scottish • Fire safety awareness refresher course for all coaches and match who are launching a comprehensive project in women’s menstrual cycle and Rugby. In addition, this ensures we attract, training delivered to all areas of Gordon Fraser (Preston Lodge) officials operating within Scotland. training programme, in conjunction impact on performance the business retain, train and develop talent. Former Scottish Rugby World Rugby First with the NSPCC. Each rugby club with photographer from 1998-2006. a youth section is required to have a Employee Engagement • Improved safety and security Aid Level 1 course Died 1 February 2017, aged 61 Child Protection Officer in place and measures for staff and visitors Developed in Regular consultation with our employees we continue to ensure that all youth introduced, especially during pre- conjunction with World University of Hertfordshire via our new HR system allows us to coaches and volunteers are members and post-event construction phase 205 Rugby, this course monitor real time information. Our Ewen Alastair John Fergusson attendees looks at how to deal of the PVG scheme. Data is being made available for an weekly employee newsletter, Engage, • Improved travel security and (Oxford University and Scotland) undergraduate epidemiological study with rugby specific Anyone with concerns or queries please has increased our communication and safety measures for our staff 5 Scotland caps in 1954 on the differences in injuries in northern incidences such as contact [email protected] employee engagement in addition to Died 20 April 2017, aged 84 and southern hemisphere rugby • Government counter terrorism concussion and limb injuries. regular CEO briefings. guidance, ‘Run, Hide and Tell’ delivered to all staff

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 42 43 Connecting with Partners Connecting Internationally

It is vital to have strong representation on international rugby bodies to bring Scottish posture and influence to the global game. Scottish Rugby has a voice at these forums by holding key positions around the table. During the past season, we have Scottish-based Team GB Olympians Scottish Rugby thanked Bill Johnstone strengthened our links with our own and Paralympians were guests at the for his years of dedicated service charity, the Murrayfield Injured Players autumn test against Australia. The crowd as BBC Radio Scotland’s rugby Foundation, as Scotland and Glasgow celebrated the athletes’ achievements commentator. A retirement gift was Warriors stand-off, Finn Russell, has and cheered them on during a lap of presented by a fellow Jedburgh man, become its ambassador. honour around BT Murrayfield at half-time. Scotland captain Greig Laidlaw. Scotland international players, Stuart Scottish Rugby works closely with Hogg and Jade Konkel, became the first politicians from all parties, whether at sporting champions for Save the Children Holyrood, Westminster or with local Fund in Scotland, while Glasgow Warriors authorities, to advance the cause of players took over the running of the rugby specifically and sport and exercise charity’s shop in Byres Road, Glasgow, in general. First Minister Nicola Sturgeon for an afternoon. joined the full-house at the Scotland v Wales game at BT Murrayfield. Former Scotland captain World Rugby European Professional Club Rugby Guinness PRO12 became ambassador for Hearts & Balls Minister of Sport and Public Health, World Rugby, formerly the IRB, is the Based in Neuchatel, Switzerland, The annual professional club rugby and is also supporting the expansion of Aileen Campbell, was present when world governing body for . EPCR is the organiser of the European competition involving 12 teams from Scottish Rugby’s partner, Trust Rugby Scottish Rugby confirmed its Rugby Based in , it oversees the laws of Rugby Champions Cup and European Scotland, Ireland, Wales and Italy is run International, who are creating a third World Cup 2019 training camp would be the game and seeks to promote the Rugby Challenge Cup tournaments for by Celtic Rugby Limited. Kicking off in Clan unified rugby team in Glasgow. held in the Japanese city of Nagasaki development of rugby union across teams which have qualified from their September, the competition culminates and attended her local club Biggar’s first the world. The Rugby World Cup is its respective domestic leagues, the Aviva in May with final-four play-offs and a final. Tartan Touch evening. flagship tournament. Premiership, the TOP14 and the Guinness Ian Rankin PRO12, as well as from the Challenge John Jeffrey Celtic Rugby Board Director Cup Qualifying Competition. World Rugby Council, Executive Dominic McKay Committee & Chair of Rugby Committee Mark Dodson Celtic Rugby Board Director EPCR Board Director Mark Dodson Chairman, Commercial & World Rugby Council Robert Howat Marketing Committee and Audit & Risk Committee EPCR Board Director Chairman, Regulations Committee

Six Nations Rugby Europe British & Irish Lions

Based in Dublin, Six Nations is the The European governing body for rugby A rugby team selected from the home organiser of the annual Six Nations represents the interests of 49 nations. unions – Scotland, England, Ireland, tournament, which began in 1883 as the Its role is to develop and manage Wales – which tours every four years to Hearts & Balls more than Home Nations Championship. Each of European rugby through all its members, the southern hemisphere. The British & Irish HELPING RUGBY HELP ITS OWN Scottish Rugby the participating nations is represented in collaboration with World Rugby, within Lions tied the 2017 series in New Zealand, supported more 200 on the Six Nations Council. a global framework of regional areas. following their 2013 test series win over than 200 requests charity Australia. John Jeffrey Dee Bradbury for charitable requests Council member and Vice Chairman Scottish Rugby representative Mark Dodson assistance from Board Director member clubs, rugby Mark Dodson Dominic McKay playing schools and Council member Rugby Europe Board Director and Andy Irvine the wider rugby community. Executive Committee Board Director Mark Bennett presented kit to Trust Rugby International side, Supporters who are seriously ill The Clan, ahead of the 2017 are given the opportunity to meet International Mixed Ability Rugby Scotland players after matches at Tournament in Spain. BT Murrayfield.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 44 45

Scottish Rugby Scottish Rugby Club Awards Club Results

Season 2016/17 Club Rugby Winners Schools & Youth Conferences Winners BT Club Ayr BT Premiership Ayr Schools Red Merchiston Castle School BT Women’s Stirling County BT Women’s Premier Murrayfield Wanderers Schools Blue Fettes College Coach Calum Forrester (Ayr) BT Charity Shield Melrose Schools White High School of Glasgow Youth Coach Matt McGrandles (Stirling County) BT National 1 Marr Schools Green Stewart’s Melville College Referee David Sutherland BT National 2 Cartha Queen’s Park Schools Purple Linlithgow Academy Spirit of Rugby Gordon Burnett (Dundee) BT National 3 Dumfries Saints Schools Black Carrick Academy BT Volunteer Elaine Martin (East Kilbride) BT Women’s National 1 Watsonians Club President’s Stirling County Brigadier Frank Coutts Scott Bickerstaff (Marr) BT Women’s National 2 Howe of Fife Girls’ President’s Biggar and Stirling County Memorial (BT) Try Spirit of Rugby, Gordon Burnett and Scottish Rugby President, Rob Flockhart BT Women’s North Shetland Women Club Red Mackie

Player of the Season BT Caledonia 1 Gordonians Club Green Hamilton

BT Premiership George Taylor (Melrose) BT Cal 2 Midlands Grangemouth Stags Club Brown Allan Glen’s

BT National 1 Tom Drennan (Edinburgh Accies) BT Cal 2 North Banff Club Border Melrose/Earlston

BT National 2 Michael Borthwick (GHK) BT Cal 3 Midlands Stirling County 3rd XV Schools & Youth Cups Winners BT National 3 Jack Steele (Dumfries Saints) BT Cal 3 North Aberdeen University Medics U18 Schools Cup Stewart’s Melville College BT Caledonia Sam Evans (Gordonian) BT West 1 Newton Stewart U18 Schools Shield Strathallan School BT East Region Fraser Strachan (Murrayfield Wands) BT West 2 Stewartry U18 Schools Plate Hutcheson’s Grammar School BT West Region Michael Kirk (Carrick) BT West 3 Strathendrick U18 Schools Bowl Morrison’s Academy BT Women’s Premier Hannah Smith (Hillhead Jordanhill) BT West 4 Glasgow University Medics U16 Schools Cup St Aloysius College BT Women’s National 1 Helen Blevins (Watsonians) BT East 1 Murrayfield Wanderers U16 Schools Shield George Watson’s College BT Women’s National 2 Katie Williams (Howe Harlequins) George Taylor, Melrose BT East 2 Broughton U16 Schools Plate Earlston High School BT Reserve 1 Melrose Storm U16 Schools Bowl Hutcheson’s Grammar School BT Reserve 2 Stirling County 2nd XV U18 Girls Schools Cup Biggar High School BT Reserve East 1 Biggar 2nd XV U18 Girls Schools Shield East Lothian Schools BT Reserve East 2 RHC 2nd XV U15 Girls Schools Cup Shawlands Academy BT Reserve West 1 Marr 2nd XV U15 Girls Schools Shield Liberton High / Royal High School BT Reserve West 2 East Kilbride 2nd XV U18 Youth Cup Stirling County BT Reserve West 3 Lenzie 2nd XV U16 Youth Cup Hawick Albion

BT Cup Finals Day Winners U18 Girls Club Cup Stirling County

BT Cup Melrose U18 Girls Club Shield Cartha Queens Park

Scott Bickerstaff, Marr Helen Blevins, Watsonians BT Shield Carrick U15 Girls Club Cup Biggar

BT Bowl Portobello FP U15 Girls Club Shield Ayr

Sarah Beaney Cup Hillhead Jordanhill

BT Women’s Plate Stewartry

BT Women’s Bowl Garioch Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 46 47 Strategic Report Governance The Directors present their Strategic Report for the year ended 31 May 2017.

Principal Activities Average bank borrowings over the year amounted to £5.2m, which is £3.3m below the prior year, generally as a result of the The principal activity of the is to promote operating performance and the timing of cash flows related to the game of Rugby throughout Scotland, using its wholly owned ticket income. Net Bank borrowings at 31 May 2017 of £3.0m subsidiary Scottish Rugby Union plc for all trading activities. were £2.6m below the previous year level, principally as a result of working capital movements just prior to the year end, in particular receipts from Scotland Season Tickets Sales for Business Review 2017/18. Interest charges fell to less than £0.4m, mainly through The Union continues to work towards the objectives outlined the lower average debt balance throughout the year. in its Policy Initiatives, specifically in the areas of academies, The Directors continue to monitor borrowing levels, income coaching, the women’s game, schools, clubs, and refereeing. and expenditure against budget on a monthly basis. They The implementation of these initiatives has continued in the also monitor other key business issues including Professional course of the year. and National Team performance which are fundamental The Union has achieved a £1.7m surplus for the year (2016: to the Union’s strategy of growing the game within a stable £0.8m). Turnover increased from £47.4m to £51.4m largely as a commercial environment. result of an increase in Ticket Income and Broadcast Income On pages 58 to 74, the Directors present their report and audited relating to men’s National Team matches, with three home consolidated financial statements for the year ended 31 May RBS 6 Nations games and three November Tests in the current 2017. The financial statements comprise the consolidated year, compared with two home RBS 6 Nations games and one financial statements of the Union and its subsidiary. August Test match in the prior year, which was a Rugby World Cup year. Similarly, commercial income has edged higher with Scottish Rugby Council: Kenneth Knott, William Gardner, Mike Monro, Graham Kerr, Peter Laverie, additional income from a number of sponsorship agreements. Financial Risk Management Rob Flockhart, Doug Ward, Dee Bradbury, Graeme Scott, Ian Rankin, Rosy Hume, John Halliday Other operating income, which includes pro team income, hospitality income, grants, and miscellaneous incomes has The risk management framework of the Union is well established fallen from £19.2m to £14.5m, primarily as grant income from with the ongoing identification, evaluation and status of Scottish Rugby Council Patron World Rugby is reduced in a non-RWC year. business risks being presented to the Audit Committee, Board At the AGM on 20 August 2016 Rob Flockhart succeeded Her Royal Highness, The Princess Royal and Council, periodically. Edward A. Crozier as President for a two year term. Dee Within the expenditure categories, the increase in International Bradbury was elected as Vice-President of the Union. Kenneth President and Professional Rugby of £1.0m is mainly due to the continuing Knott joined the Council, replacing Fergus Neil as the Scottish Rob Flockhart investment in the professional rugby squads. Domestic and Financial Instruments Rugby Referees’ Association representative. William Gardner Performance rugby investment has increased marginally, as a Having served as Vice President in 2015/2016, Rob was elected replaced Jim Stevenson as the Glasgow North Regional further full year of the revised structure supporting the domestic The Union uses interest rate swaps to reduce its exposure to as President of the SRU at the AGM in 2016. On his election representative and Dr John Halliday replaced Bruce Thompson game and also the BT academies is included. Commercial and interest rate movements. Details of this are noted in the as President, he also became a non-executive director on as the Schools Division representative. Rosy Hume replaced Operational Costs are £1.9m higher as a result of the increase Accounting Policies and in Note 10 to the financial statements. the Scottish Rugby Board for the period of his Presidency. Dee Bradbury following her election as Vice-President as in the number of matches and events at BT Murrayfield, as The Union also uses forward sale currency contracts to reduce Rob served as Team Manager of Edinburgh U21, Scotland the Scottish Women’s Forum representative, with effect from noted above in the income section, together with increased its exposure to exchange rate movements. Details of this are U21, senior Edinburgh and Scotland A teams, and for a November 2016. sponsor activity. The Club Sustainability Fund, which is making also noted in the Accounting Policies and in Note 10 to the period acted as a selector of the Scotland team. Rob is an £1.6m available over 4 years to clubs for sustainability projects financial statements. Financial instruments are not used for Rob Flockhart chaired the Council with the Vice-President, experienced international Citing Commissioner and has served has awarded £0.25m during this year. The balance is, therefore speculative purposes. Dee Bradbury acting as the Vice-Chair. The Council met nine on disciplinary panels for the SRU, Pro12, ERC, Six Nations and available in 2017/18, and beyond if necessary, for clubs to times during the financial year, including immediately after World Rugby. utilise. As a result, in the current year, the Club Support & the AGM to elect a Council representative to the Board, Development investment is £2.8m this year. The slight increase By order of the Board quarterly reviews, a joint briefing session with the Board and Vice President Dee Bradbury in Depreciation is as a result of current and prior year asset additional briefing meetings. The Council is responsible, among additions, and the Fixed Asset disposal is as a result of the flood other things, for reviewing the operational activity delegated A founding member of the ladies section at Oban Lorne RFC Robert M Howat prevention work at the Water of Leith, with no cash impact on to the Board, developing and fostering the game of rugby in and currently Honorary President of the club, Dee is a retired Company Secretary the organisation. Scotland, reviewing and advising on matters of policy and Police Officer. She has represented Scotland and Great Britain in Edinburgh, 13 July 2017 strategy and developing relationships within the game at both athletics as well as playing representative netball and managed domestic and international levels. the Scotland U18 women’s team. She is Scottish Rugby’s Council members participated in various working groups during representative to Rugby Europe and is married with two sons, the year. These included season structures and governance both of whom play rugby. review and in ambassadorial capacities, supporting the various age grade and women’s national teams.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 48 49

Alan A Brown Graeme Scott Scottish Borders Regional Rep National Division 2 Rep

A keen rugby player, the Chartered Management Accountant Graeme Scott joined the Council following the 2014 AGM. Prior has worked in the social housing sector for the past 36 years to his appointment, Graeme served as the Championship Club and is currently the Director of Finance and Corporate Services Forum Secretary. He remains Honorary Secretary of Whitecraigs for the Eildon Housing Association Ltd. He has served on Rugby Club where he also been President, Captain and the committee of: Royal High RFC, Gala Star RFC and Gala Director of Rugby. He is also Company Secretary of Whitecraigs Wanderers RFC as well as serving as Treasurer of the Gala Rugby Club Ltd. Junior Rugby Council and the Secretary/Treasurer of the Border Semi-Junior League. Alan is also a trustee of the Murrayfield Injured Players Foundation.

Graham Kerr Doug Ward Midlands Regional Rep National Division 1 Rep

Graham has been a member of Alloa RFC for many years, A current member and past President of Biggar, Doug is the serving the club as a player, coach, Secretary and Vice Chairman of Celtic Renewables Ltd and a Vice President of the President. As a rugby administrator, Graham was employed European Biodiesel Board. He was appointed CBE in 2006 for as Caledonia Rugby Administration Executive between services to agriculture in Scotland and received an honorary 1997 and 2006. Since 2006, he has served on the Caledonia doctorate in 2010 from Edinburgh Napier University. Competitions Committee and is currently Caledonia Midlands Age Grade Convenor.

Peter Laverie Ian Barr Premier Division Rep National Division 3 Rep East Kilbride U15 v Allan Glen U15

Peter has been involved in coaching club rugby at national Ian has served as President of Lasswade RFC for a number and premiership levels for over 20 years. During that time he of years and was instrumental in the setting up of the Rosy Hume Ian Rankin has also coached age-grade rugby at district and international Midlothian Rugby Development Group. Ian served as Women’s Forum Rep Co-opted member (PRO12 representative) level and with the Scotland Club XV side. He has been involved one of the Scottish Rugby Council’s representatives Rosy Hume has been a member of Murrayfield Wanderers RFC Ian served as President in 2014/2015 and was appointed to in coach education as well as chairing the Premiership Forum on the Scottish Rugby Board from 2013 - 2015. He also serves as for almost 20 years, having started her playing career at Heriot the Celtic Rugby Board in 2016 as a co-opted Scottish Rugby for four years. Peter is a Senior Lecturer and Teaching Fellow at the Council Ambassador with the Scotland U20 team. Watt University. She was also the Manager of Scotland Women Council member. The former captain of Edinburgh Wanderers Glasgow Clyde College and is a non-executive Director on the for four years, during which time they won the European and Howe of Fife went on to coach both sides and Kirkcaldy Scottish Rugby Board. Championships. Rosy also served as Vice Chair of the Scottish before taking charge of Caledonia Reds and Edinburgh Women’s Rugby Union and was part of the team working Reivers. He also assisted with Scotland A and Scotland U20 Jim Littlefair Adam Gray towards the full integration of the SWRU with the SRU. She also before holding the Director of Rugby position at Dundee HSFP. Edinburgh Regional Rep Glasgow South Regional Rep serves as the Council Ambassador with Scotland Women. Jim is a Past President of North Berwick RFC and a Director Adam Is a past Captain of Stewartry RFC, whom he also Kenneth Knott John Jeffrey of the Hearts & Balls Charitable Trust. He played for Stewart’s coached from 1992-2005, being awarded National League Referees Rep Co-opted member (World Rugby & Six Nations) Melville FP from 1972 - 84. He was elected as one of the Coach of the year in 2005. He is an accredited level three Scottish Rugby Council’s representatives on the Scottish Coach. From 2006-2010 he was employed by Scottish Rugby Kenneth was Secretary then President of the Highland Rugby John won 40 caps for Scotland and was a member of the Rugby Board in 2015 and is also a trustee of the Murrayfield as a Performance Development Manager in the Glasgow Referee Society until being elected to the Scottish Rugby team of 1990. He was also a British & Irish Lion and Injured Players Foundation. South region. From 2011-2013 he served on the Referees Council as the Referees Rep. He also served on the Scottish continues to promote Scottish Rugby’s interests through serving Selection Panel. Rugby Referee Association executive including working on the as a co-opted member of the Council by representing Scottish governance and communication working groups. He currently Rugby at World Rugby and on the Six Nations Council. Mike Monro William Gardner sits on the Council Communication Working Group. North Regional Rep Glasgow North Regional Rep Dr John Halliday A member of Aberdeenshire RFC since 1971, Mike has served Past President and Life Member of Lanark Rugby Football Schools Rep as Secretary and President. He refereed for a number of years Club, William is the Glasgow North Clubs Representative John has been the Rector of the High School of Dundee since after retiring from playing. A former pupil of Robert Gordon’s on the West Region Championship Committee. 2008, his third headship having previously been at the helm of College, Mike thereafter attended Aberdeen University He is also the Council Representative on the Advisory Group Albyn School, and Rannoch School. He is also a Governor of obtaining a degree in Law in 1974. He also serves as a to the West Regional Academy Group and a member of the St Aloysius’ College, and previously also taught at Merchiston, trustee on the Murrayfield Injured Players Foundation and as a Player Retention Group. William is a trustee of the Murrayfield Sedbergh and Dollar. He currently chairs the Scottish Rugby non-executive Director on the Scottish Rugby Board. Injured Players Foundation. National Schools Forum. He is dedicated to the vision that sport can transform lives and is a powerful motor for developing grounded young people ready to take on the challenges of the world.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 50 51

Robert Howat Ian McLauchlan Governance Executive Director, General Counsel Independent non-executive Director & Company Secretary Appointed on 1 July 2012. Appointed on 15 July 2015. Re-appointed for a further 3 years Robert joined Scottish Rugby as General with effect from 1 July 2015. Colin Grassie Scottish Rugby Board Counsel in January 2013 and oversees Independent non-executive Director, Ian played for Jordanhill, Glasgow and the Legal & Governance Department, The Scottish Rugby Board is responsible for the ongoing Chairman Natal, was capped for Scotland 43 Human Resources and Health & Safety functions. Robert management and operations of Scottish Rugby under powers Appointed as Chairman with effect times (19 as Captain) and played in all tests of the successful became a Board Director in July 2015 and is also a Director of delegated to it under the Bye-Laws. Its members also serve from 1 January 2017. British & Irish Lions Tours of New Zealand in 1971 and South Africa European Professional Club Rugby and Chair of its Regulations as the Board of Scottish Rugby Union plc, comprising four in 1974. He served two terms as Scottish Rugby President, is Born in Glasgow, Colin joined the Board Committee. Prior to taking his role at Scottish Rugby, Robert independent non-executive Directors, four non-executive an independent non-executive Director, a member of the on 1 July 2012 and was re-appointed for was Company Secretary at Celtic FC for 11 years. Directors nominated by the Scottish Rugby Council (one of Nomination Committee and chair of the Remuneration a further 3 years in 2015 and appointed as Chairman with effect the four being the President in his capacity as Chairman of Committee. Ian is Chairman of the British & Irish Lions Trust and from January 2017. He Chairs the Nomination Committee. Peter Laverie the Council), and four Executive Directors. Sir Moir Lockhead a Director of the Hearts & Balls Charitable Trust. retired as Chairman on 31 December 2016 and was succeeded Colin also sits on the Advisory Board of Winning Scotland and Council nominated non-executive is chair of the Development Trust of the Glasgow School of Art. Director by Colin Grassie, the serving Senior Independent Director, who David McMillan Appointed at 2016 AGM for 3 years. took up office as Chairman on 1 January 2017. David McMillan Independent non-executive Director Mark Dodson joined the Board as an Independent non-executive Director Peter is a Council nominated non- Appointed 1 March 2017. Executive Director, CEO from 1 March 2017. The Vice-President is also entitled to attend executive Director and a member of Appointed on 19 September 2011. David joined the Board as an Board meetings as an observer, but is not entitled to vote. the Audit & Risk Committee. He is the independent non-executive Director on Appointed Chief Executive in September former Head Coach of Ayr and Cartha Queens Park and is now Executive Directors serve under the terms of their employment 1 March 2017, for a three-year term. He 2011, Mark signed a further five-year forwards coach at Glasgow Hawks. Peter has been involved or service contracts. The independent non-executive Directors was recently appointed Group COO of contract taking him to 2020. He is one in coaching age-grade rugby at district and international are appointed for terms of three years and would normally be QBE, the Australian listed, global Insurance company. Prior to of Scottish Rugby’s representatives on level and with the Scotland Club XV side. Peter is also a Senior expected to serve for a minimum of two terms. Appointment that he spent 15 years with Aviva plc, with senior roles including World Rugby, the Six Nations Council, European Professional Lecturer at Glasgow Clyde College. of the independent non-executive Directors is by the Board, CEO UK & Ireland GI, Chairman, Global Healthcare and CEO, Club Rugby and the British & Irish Lions. Starting his career in 1979 on the recommendation of the Nomination Committee and Europe and India. Based in Edinburgh, David is a Chartered at the Guardian Media Group, he became Chief Executive of Jim Littlefair subject to ratification by the Council. Management Accountant with an undergraduate degree Guardian Media Group Regional in 2005 and was appointed to Council nominated non-executive from Heriot-Watt University and an MBA from the University of The Council nominated non-executive Directors are appointed, the Guardian Media Group Board. Director Chicago. He spent his early career with HP and PwC. or reappointed as the case may be, by the Council after the Appointed on 9 August 2015 for 3 years. AGM, when vacancies arise. Their terms in office vary. The Rob Flockhart Jim served as President of North Mike Monro current President, Rob Flockhart, will continue to serve on the Council nominated non-executive Berwick from 2009-12 and led a major Council nominated non-executive Board until the 2018 AGM, when his period of office as President Director, President refurbishment of the club’s facilities. He Director will come to an end. Appointed at 2016 AGM for 2 years. joined the Board as a Council representative after the AGM Appointed on 6 December 2012. Other Council nominated non-executive Directors may Having served as Vice President in in 2015 and is a member of the Audit & Risk and Nomination Re-appointed 16 August 2014 for 3 years. serve on the Board for up to three years at a time, subject to 2015/2016, Rob was elected as President Committees. The former Stewart’s Melville player is also a A former pupil of Robert Gordon’s remaining a member of Council. Eligibility for re-election to the of the SRU at the Union’s AGM in 2016. Director of Hearts & Balls Charitable Trust and is a trustee of the College and Law graduate of Aberdeen University, Mike Board depends on remaining a member of the Council and On his election as President, he also became a non-executive Murrayfield Injured Players Foundation. specialises in Criminal Court matters. He is a member of both the application of the election rules incorporated into the director of the Board for the period of his Presidency. Rob Aberdeen Wanderers and Aberdeenshire for whom he served Bye-Laws. On ceasing to be a member of Council, a Council served as Team Manager of the Edinburgh U21, Scotland U21, Dominic McKay as Secretary and President. After playing, Mike refereed for nominated non-executive Director is also required to step senior Edinburgh and Scotland A teams, and for a period acted Executive Director, Chief Operating seven years and was secretary of ADDRS. He was a committee down from the Board. as a selector of the Scotland team. Rob is an experienced Officer member of NDRU and chairs its successor, Caley North Forum. international Citing Commissioner and has served on disciplinary Appointed on 26 September 2013. Mike also sits on the Caley Championship Committee and as As at the financial year end, the Directors of the Boards of panels for the SRU, Pro12, ERC, Six Nations and World Rugby. Scottish Rugby Union and Scottish Rugby Union plc and their Dominic joined Scottish Rugby in 2008 a trustee on Murrayfield Injured Players Foundation. Mike is a from his previous post at drinks giant Council nominated non-executive director and is a member of terms of office were: Andrew Healy Pernod Ricard. He is the Chief Operating the Audit & Risk and Remuneration Committees. Executive Director, Finance Director Officer and is responsible for all group commercial, media, Appointed on 22 August 2013. marketing, events, ticketing, stadium facilities and public affairs Lesley Thomson QC Joining Scottish Rugby in 2007 as activity for Scottish Rugby. He also oversees the off-field activity of Independent non-executive Director Financial Controller, Andrew was Glasgow Warriors and Edinburgh Rugby. Dominic is a Director of Appointed on 1 October 2013 for 3 appointed to the Board as Finance the Celtic League/PRO12 Board and a Director of Rugby Europe. years. Re-appointed for a further 3 Director in 2013. A Chartered years with effect from 1 October 2016. Accountant and born in Glasgow, he played with GHA for a Former Solicitor General for Scotland and number of years, before retiring and taking up refereeing for former General Committee member at a further nine years. He played for Glasgow Schools, Glasgow Melrose RFC, Lesley was the first woman to sit on the Scottish Rugby U18 and Glasgow U21 and represents Scottish Rugby on a Board when she was appointed in 2013. Lesley is a member of the number of finance committees within international bodies. Remuneration Committee and chairs the Audit & Risk Committee. Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 52 53

Director’s Representative Governance Fee Bodies’ Fee Total £ £ £

Colin Grassie 35,000 - 35,000

Jim Littlefair 15,000 - 15,000

Board Committees Remuneration Committee Ian McLauchlan 15,000 - 15,000 (Chair: Ian McLauchlan) During the period, the Board also operated three sub- Mike Monro 15,000 - 15,000 committees. Membership of Board Committees is restricted to Colin Grassie, Ian McLauchlan, Mike Monro, Lesley Thomson and Rob Flockhart 15,000 - 15,000 non-executive Directors and at least one Council nominated Rob Flockhart all served on this Committee during the financial non-executive director serves on each Committee. Executive year. Colin Grassie stepped down from the Committee on Peter Laverie 15,000 - 15,000 Directors and other members of staff and external advisers becoming Chairman of the Board. The Committee is responsible David McMillan 15,000 - 15,000 attend meetings regularly, as required. Each Committee for making recommendations, within agreed terms of reference, has detailed terms of reference approved by the Board and on remuneration policies, monitoring and approving Executive Lesley Thomson QC 11,250 - 11,250 the Council. Directors’ and certain senior Executive remuneration packages, Lesley Thomson had previously waived her fees while serving as setting and monitoring key performance targets and reviewing Solicitor General for Scotland. Her entitlement resumed on 1 The Chair of each Committee presents a report to the Board succession planning. Approval of the remuneration of senior September 2016 following her retirement from that office. on that Committee’s work at the next Board meeting. coaches and higher-earning players also falls within the Committee’s remit. Council members serving as international representatives for Audit & Risk Committee Scottish Rugby Union are also entitled to be paid a fee for (Chair: Lesley Thomson) The Committee met seven times during the financial year. The their services on those bodies. The annual rates of fee for those Company Secretary attends meetings, with the Chief Executive individuals in office at the financial year end are set out in the Mike Monro, Peter Laverie, Jim Littlefair and Lesley Thomson attending as required. Advice is taken from external consultants table below. Fees are subject to pro-rating for part years. all served on this Committee during the financial year. The when needed, although none was required during the year. Committee is responsible for assisting the Board to discharge Position Held Paid by its responsibilities for accounting policies, financial reporting, Governance Standards internal financial control and risk management. The Committee Ian Rankin Celtic Rugby SRU All members of the Board and Council are required to comply met four times during the financial year. Committee meetings Dee Bradbury Rugby Europe SRU are attended routinely by the Financial Director, the Financial with Scottish Rugby’s Code of Conduct. Under the Code Controller, the Company Secretary and representatives from of Conduct any alleged breach of the Code is subject to John Jeffrey World Rugby / 6N World Rugby / 6N the Union’s auditors. consideration by an independent panel. No breaches or alleged breaches were reported in the year. Notes: Nomination Committee (Chair: Colin Grassie) Corporate Governance 1. These rates were not changed in the financial year.

Sir Moir Lockhead (to 31 December 2016), Jim Littlefair, During the period the Governance Working Party created in 2014 2. Members of the Scottish Rugby Council receive no Rob Flockhart, and Colin Grassie (Chairing from 1 January continued its work, under its independent Chairman, Magnus remuneration in respect of their elected roles although are 2017) all served on this Committee during the financial Swanson. Its work during the period and recommendations form entitled to recover expenses incurred wholly, exclusively year. The Chief Executive and Company Secretary also the basis for the motions to be proposed by the Council and and necessarily on Scottish Rugby business in accordance attend the Committee’s meetings. This Committee is Board at the 2017 AGM. The report can be accessed on the with Scottish Rugby’s expenses policy. Union’s website. responsible for making recommendations to the Board as 3. World Rugby, Six Nations (6N) and Celtic Rugby Limited to the membership of the Board and its Sub-Committees, The Council and Board remain committed to the ongoing (CRL) compensate the representatives/directors serving the identification and recruitment of new Directors when development and improvement of governance structures. The on those bodies and the service fees paid to the Scottish required and the identification and appraisal of international Governance Working Party will continue during the 2017/2018 Rugby representatives involved were as noted. Fees body representatives. The Committee was involved in the financial year. payable by those bodies during the financial year to Mark recruitment process resulting in the appointment of David Dodson and Dominic McKay were disclaimed by the McMillan. Advice is taken from external consultants as required. Remuneration and Benefits of Non-Executive and Council individuals and are retained by Scottish Rugby. FWB Park Brown were appointed to assist in the recruitment Board Representatives of a new independent non-executive Director following the 4. Dominic McKay served as a director of Celtic Rugby Scottish Rugby Board: Ian McLauchlan, Dominic McKay, Non-executive Board members, including Council retirement of Sir Moir Lockhead. The Committee met four times Limited and Rugby Europe during the year, with Mark Mark Dodson, Robert Howat, Colin Grassie, Mike Monro, representatives on the Board, are paid a fee for their service. in the period. Dodson and Robert Howat being Scottish Rugby’s Rob Flockhart, Jim Littlefair, Andrew Healy, Peter Laverie The annual rates of fee applied for the non-executive Board nominated board members of European Professional Club members serving at the financial year end are set out below. Rugby. Any fees payable to Mark Dodson and Robert These amounts are pro-rated for part years. Board members Howat were disclaimed. are also entitled to be reimbursed for expenses incurred wholly, exclusively and necessarily on Scottish Rugby business.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 54 55 Board Report The Directors present their report and the audited consolidated financial statements for the year ended 31 May 2017.

An overview and review of the Union can be found in the of work has been undertaken in producing our Equality and Business Review, within the Strategic Report on page 44. Diversity Plan, which can be located on our website, and we have appointed an Equality Champion. In addition we have recruited an Equality and Outreach Manager. This role has Going Concern and Outlook been instrumental in imbedding equality and diversity and progressing actions within our plan. Scottish Rugby has also The Directors believe that the Union has adequate resources signed the Equality Network Scottish LGBTI Sports Charter. to continue in operational existence for the foreseeable future and it therefore continues to adopt the going concern basis Consultation with employees or their representatives has in preparing the financial statements. The Directors continue continued at all levels, with the aim of ensuring that their views to budget for, and operate, the Union on a cash flow positive are taken into account when decisions are made that are and earnings positive basis. Notwithstanding the challenging likely to affect their interests and that all employees are aware intra-industry and wider economic and market conditions, of the financial and economic performance of their business the Directors intend to continue to operate on this basis and, units and of the company as a whole. Communication with therefore, look forward to the year ahead and the challenges all employees continues through e-mail communication, that this brings. organisation-wide Engage newsletter briefings, CEO employee briefings and the distribution of the Annual Report. ’s last game for Glasgow Warriors Employees v Edinburgh Rugby, Scotstoun 2017 Statement of Directors’ responsibilities Scottish Rugby recognises the value and importance of promoting equal employment opportunities for its current The Directors are responsible for preparing the Annual Report The Directors are responsible for keeping adequate Directors and future staff and considers all forms of discrimination and the financial statements in accordance with applicable accounting records that are sufficient to show and explain the The Directors of Scottish Rugby Union plc who held office to be unacceptable in the workplace. We aim to be an law and regulations. Union’s transactions and disclose with reasonable accuracy inclusive organisation where everyone is treated with dignity during the year, and up to the date of signing the financial Company law requires the Directors to prepare financial at any time the financial position of the Union and enable and respect and where diversity is valued across all of the statements, are noted on pages 48 and 49. statements for each financial year. Under that law the them to ensure that the financial statements comply with the recognised equality strands detailed within the Equality Directors have prepared the Union’s financial statements Companies Act 2006. Act 2010. The organisation is committed to providing equal in accordance with United Kingdom Generally Accepted opportunities throughout recruitment, employment, training The Directors are also responsible for safeguarding the assets Accounting Practice (United Kingdom Accounting Standards, and career development and has a comprehensive Equal of the Union and hence for taking reasonable steps for the comprising FRS 102 “The Financial Reporting Standard By order of the Board Opportunities Employment Policy, Equality and Diversity prevention and detection of fraud and other irregularities. applicable in the UK and Republic of Ireland”, and applicable Policy and several other related policies that support the nine The Directors are responsible for the maintenance and integrity law). Under company law the Directors must not approve the protected characteristics within the Equality Act. of the Union’s website. Legislation in the United Kingdom Robert M Howat Union’s financial statements unless they are satisfied that they governing the preparation and dissemination of financial Company Secretary We are committed to adopting equitable employment give a true and fair view of the state of affairs of the Union and statements may differ from legislation in other jurisdictions. Edinburgh, 13 July 2017 practices and terms and conditions which are based on the of the surplus or deficit of the Union for that period. merits, ability and potential of individuals, and to avoiding In the case of each Director in office at the date the Directors’ In preparing the financial statements, the Directors are required to: any conditions or requirements that cannot be justified by the Report is approved: needs of the job. As an example of this equitable approach, • select suitable accounting policies and then apply them • so far as the Director is aware, there is no relevant audit Scottish Rugby has been granted the Positive About Disabled consistently; information of which the group’s auditors are unaware; and People award by Job Centre Plus, recognising our commitment • state whether applicable United Kingdom Accounting to equality and confirming that applications from disabled • they have taken all the steps that they ought to have taken Standards, comprising FRS 102, have been followed, subject people are always positively considered by the organisation. as a director in order to make themselves aware of any to any material departures disclosed and explained in the relevant audit information and to establish that the Group’s In addition to our employment practices, Scottish Rugby has financial statements; auditors are aware of that information. achieved the Intermediate Level of the Equality Standard: A • make judgements and accounting estimates that are Framework for Sport which is a collaborative effort between reasonable and prudent; and the four national Sports Councils, UK Sport and equality organisations to achieve measurable stands of equality. • prepare the financial statements on the going concern Scottish Rugby has also been awarded the Preliminary Level basis unless it is inappropriate to presume that the Union will of the Equality Standard through our efforts and commitment continue in business. to make rugby in Scotland open to all. A significant amount

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 56 57 Independent Auditors’ Report to the Members of the Scottish Rugby Union

Report on the Group Financial Statements Opinion on other matters prescribed by the Companies Act 2006 Our Opinion In our opinion, based on the work undertaken in the course of In our opinion the Scottish Rugby Union’s group financial the audit: statements (the “financial statements”): • the information given in the Strategic Report and the • give a true and fair view of the state of the Union’s affairs as Board Report for the financial year for which the financial at 31 May 2017 and of its surplus and cash flows for the year statements are prepared is consistent with the financial then ended; statements; and • have been properly prepared in accordance with United • the Strategic Report and the Board Report have Kingdom Generally Accepted Accounting Practice; and been prepared in accordance with applicable legal • have been prepared in accordance with the requirements requirements. of the Companies Act 2006. In addition, in light of the knowledge and understanding of the Union and its environment obtained in the course of the audit, we are required to report if we have identified any material What we have audited misstatements in the Strategic Report and the Directors’ Report. The financial statements, included within the Annual Report We have nothing to report in this respect. (the “Financial Statements”), comprise: Biggar v Stirling County, Girls Club Cup U15 Final

• the Consolidated Balance Sheet as at 31 May 2017; Other matters on which we are required to report by This report, including the opinions, has been prepared for and We test and examine information, using sampling and other • the Consolidated Income and Expenditure Account and exception only for the company’s members as a body in accordance with auditing techniques, to the extent we consider necessary to Statement of Comprehensive Income for the year then Adequacy of information and explanations received Chapter 3 of Part 16 of the Companies Act 2006 and for no other provide a reasonable basis for us to draw conclusions. We ended; purpose. We do not, in giving these opinions, accept or assume obtain audit evidence through testing the effectiveness of Under the Companies Act 2006 we are required to report to you • the Consolidated Statement of Cash Flows for the year then responsibility for any other purpose or to any other person to controls, substantive procedures or a combination of both. if, in our opinion, we have not received all the information and whom this report is shown or into whose hands it may come save ended; In addition, we read all the financial and non-financial explanations we require for our audit. We have no exceptions where expressly agreed by our prior consent in writing. • the Consolidated Statement of Changes in Equity for the to report arising from this responsibility. information in the Annual Report to identify material year then ended; What an audit of financial statements involves inconsistencies with the audited financial statements and to Directors’ remuneration identify any information that is apparently materially incorrect We conducted our audit in accordance with ISAs (UK & • the accounting policies; and based on, or materially inconsistent with, the knowledge Under the Companies Act 2006 we are required to report to you Ireland). An audit involves obtaining evidence about the acquired by us in the course of performing the audit. If we • the notes to the financial statements, which include other if, in our opinion, certain disclosures of Directors’ remuneration amounts and disclosures in the financial statements sufficient become aware of any apparent material misstatements or explanatory information. specified by law are not made. We have no exceptions to to give reasonable assurance that the financial statements are report arising from this responsibility. inconsistencies we consider the implications for our report. The financial reporting framework that has been applied in free from material misstatement, whether caused by fraud or With respect to the Strategic Report and Board Report, we the preparation of the financial statements is United Kingdom error. This includes an assessment of: consider whether those reports include the disclosures required Accounting Standards, comprising FRS 102 “The Financial Responsibilities for the Financial Statements and the audit • whether the accounting policies are appropriate to the by applicable legal requirements. Reporting Standard applicable in the UK and Republic of group’s circumstances and have been consistently applied Ireland”, and applicable law (United Kingdom Generally Our responsibilities and those of the directors and adequately disclosed; Accepted Accounting Practice). Kenneth Wilson As explained more fully in the Statement of Directors’ • the reasonableness of significant accounting estimates (Senior Statutory Auditor) In applying the financial reporting framework, the Directors responsibilities set out on pages 52 and 53, the Directors are made by the directors; and have made a number of subjective judgements, for example responsible for the preparation of the financial statements and for and on behalf of PricewaterhouseCoopers LLP • the overall presentation of the financial statements. in respect of significant accounting estimates. In making for being satisfied that they give a true and fair view. Chartered Accountants and Statutory Auditors such estimates, they have made assumptions and considered Our responsibility is to audit and express an opinion on the We primarily focus our work in these areas by assessing the Edinburgh, 13 July 2017 future events. financial statements in accordance with applicable law and Directors’ judgements against available evidence, forming International Standards on Auditing (UK & Ireland) (“ISAs (UK our own judgements, and evaluating the disclosures in the & Ireland)”). Those standards require us to comply with the financial statements. Auditing Practices Board’s Ethical Standards for Auditors.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect Scottish Rugby Financial Statements

BT Cup Finals Day captains 60 61 Principal Accounting Policies

The financial statements have been prepared in compliance % with United Kingdom Accounting Standards, including Land Nil Financial Reporting Standard 102, The Financial Reporting Standard applicable in the United Kingdom and the Republic Stands and Heritable property 1-20 of Ireland (“FRS 102”) and the Companies Act 2006. Fixtures and fittings 4-25 The principal accounting policies applied in the preparation Other equipment 7-50 of these consolidated financial statements are set out below. These policies have been consistently applied to all the years No depreciation is charged on Assets Under Construction. presented, unless otherwise stated. Intangible Fixed Assets These financial statements are prepared on the going concern Intangible assets comprise computer related software. The cost basis, under the historical cost convention, as modified by the of intangible fixed assets is their purchase cost, together with recognition of certain financial assets and liabilities measured any incidental costs of acquisition. The level for capitalisation at fair value. of intangible fixed assets has been set at £5,000. Amortisation is Basis of Consolidation calculated so as to write off the cost of intangible fixed assets, less their estimated residual values, over the expected useful The consolidated financial statements cover the year to 31 economic lives of the assets concerned. The straight line Strathallan School v Glenalmond College, May 2017 and include the Scottish Rugby Union, a mutual basis is used in respect of all assets and the principal annual U18 Schools Shield Final 2016 organisation, its subsidiary undertakings Scottish Rugby Union amortisation rates are: plc and The Murrayfield Experience Limited, and a related % body, the Thistle Rugby Trust. The parent body, Scottish Rugby Leasing and hire purchase agreements which transfer Financial Instruments Union, has not traded during either the current period or Intangible Fixed Assets 7-50 substantially all the benefits and risks of ownership of an asset The Union has chosen to adopt Sections 11 and 12 of FRS 102 in previous year and its only assets and liabilities are its investment are treated as if the asset had been purchased outright. The No amortisation is charged on Assets Under Construction. respect of financial instruments. in, and loans from, Scottish Rugby Union plc of £50,000. assets are included in fixed assets and the capital element Turnover Deferred Income of the leasing commitment is shown as an obligation under (i) Financial Assets finance leases. The lease rentals are treated as consisting Capital grants and debenture premiums are transferred to Basic financial assets, including trade and other debtors, Turnover represents ticket sales, broadcasting revenue and all of capital and interest elements, with the capital element deferred income and amortised over the estimated useful cash and bank balances and loans, are initially recognised other income and is stated net of VAT. Revenue is recognised applied to reduce the outstanding obligation and the interest life of the associated fixed assets or the life of the debenture, at transaction price, unless the arrangement constitutes a based on the relevant contractual terms or in accordance with element charged against the surplus or deficit for the period respectively. financing transaction, where the transaction is measured the occurrence of the relevant event. Where consideration is on a straight line basis. Assets held under finance leases are at the present value of the future receipts discounted at a received in kind, income and expenditure are grossed up on Debenture issue costs depreciated over the shorter of the lease term and the useful market rate of interest. Such assets are subsequently carried the basis of arm’s length commercial rates. lives of equivalent owned assets. The costs associated with the issue of capital instruments are at amortised cost using the effective interest method. Tangible Fixed Assets charged to the income and expenditure Account on an Grants At the end of each reporting period financial assets annual basis over the minimum period remaining until the The cost of tangible fixed assets is their purchase cost, together Revenue grants are credited to the income and expenditure measured at amortised cost are assessed for objective redemption of the associated instrument. with any incidental costs of acquisition. Significant sums are account in the same period as the related expenses. evidence of impairment. They are first assessed individually spent on maintenance of the Union’s main asset, BT Murrayfield Pension costs for impairment, or collectively where the debtors are Taxation Stadium, therefore the de-minimus level for capitalisation of not individually significant. Where there is no objective Contributions are made by the Union to money purchase assets has been set at £10,000 for the first three asset categories The Union has mutual trading status for taxation purposes as evidence of impairment for an individual debtor, it is scheme pension arrangements for certain employees. below and at £5,000 for Other equipment. Depreciation is regards its trading activities with the members and pays tax included in a group of debtors with similar credit risk Amounts due to assurance companies are charged against calculated so as to write off the cost of tangible fixed assets, only on the profit derived from trading with non-members. characteristics and these are assessed collectively for the income and expenditure account in the period in which less their estimated residual values, over the expected useful Deferred Taxation is recognised on all timing differences where impairment based on their ageing. they become payable. The Union provides no other post economic lives of the assets concerned. The straight line the transaction or events that give rise to an obligation to pay retirement benefits to its employees. If an asset is impaired, the impairment loss is the difference basis is used in respect of all assets and the principal annual more, or less, tax in the future have occurred by the Balance between the carrying amount and the present value of depreciation rates are: Finance and operating leases Sheet date. Deferred tax assets are recognised when it is the estimated cash flows discounted at the asset’s original probable that they will be recovered. The tax rates in force at Costs in respect of operating leases are charged on a straight effective interest rate. The impairment loss is recognised in the Balance Sheet date are used to calculate the need for any line basis over the lease term. the Income Statement. deferred tax provision or asset.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 62 63

If there is a decrease in the impairment loss arising from they are included in a hedging arrangement. Consolidated Income & Expenditure account an event occurring after the impairment was recognised, Financial liabilities are derecognised when the liability is for the year ended 31 May 2017 the impairment is reversed. The reversal is such that the extinguished, that is when the contractual obligation is current carrying amount does not exceed what the 2017 2016 discharged, cancelled or expires. carrying amount would have been had the impairment Notes £000 £000 not previously been recognised. The impairment reversal (iii) Offsetting is recognised in the Income Statement. Turnover Financial assets and liabilities are offset and the net Ticket income 12,636 6,995 Other financial assets, are initially measured at fair value, amounts presented in the financial statements when there Broadcasting revenues 13,270 10,908 which is normally the transaction price. is a legally enforceable right to set off the recognised Commercial Income 11,013 10,328 amounts and there is an intention to settle on a net basis Such assets are subsequently carried at fair value and Other operating income 14,530 19,203 or to realise the asset and settle the liability simultaneously. the changes in fair value are recognised in the Income Statement, unless they are included in a hedging (iv) Hedging arrangements 51,449 47,434 arrangement, and except that investments in equity The Union applies hedge accounting in respect of forward instruments that are not publicly traded and whose fair Costs foreign exchange contracts held to manage the cash values cannot be measured reliably are measured at cost International and Professional Rugby (24,967) (23,998 ) flow exposures of forecast transactions denominated in less impairment. Domestic and Performance Rugby (7,623) (7,509 ) foreign currencies. These foreign exchange hedges have Commercial and Operational (12,460) (10,570 ) Financial assets are derecognised when (a) the been designated as cash flow hedges. Club Support and Development (2,766) (2,937 ) contractual rights to the cash flows from the asset expire The Union also applies hedge accounting for transactions Depreciation (1,231) (1,180 ) or are settled, or (b) substantially all the risks and rewards entered into to manage the cash flow exposures of of the ownership of the asset are transferred to another borrowings. Interest rate swaps are held to manage the (49,047) (46,184 ) party, or (c) despite having retained some significant risks interest rate exposures and are designated as cash flow and rewards of ownership, control of the asset has been hedges of floating rate borrowings. Operating Surplus 2,402 1,250 transferred to another party who has the practical ability Deficit on disposal of Fixed Asset (331) - to unilaterally sell the asset to an unrelated third party Changes in the fair values of derivatives designated as Surplus on ordinary activities before interest 2,071 1,250 without imposing additional restrictions. cash flow hedges, and which are effective, are recognised directly in equity. Any ineffectiveness in the hedging (ii) Financial liabilities Net Interest 3 (356) (404 ) relationship (being the excess of the cumulative change in Basic financial liabilities, including trade and other fair value of the hedging instrument since inception of the Surplus on ordinary activities before taxation 1 1,715 846 payables, and bank loans, are initially recognised at hedge over the cumulative change in the fair value of the hedged item since inception of the hedge) is recognised transaction price, unless the arrangement constitutes Tax on surplus on ordinary activities 4 - (10 ) a financing transaction, where the debt instrument is in the income statement. measured at the present value of the future receipts The gain or loss recognised in other comprehensive Surplus for the financial year 17 1,715 836 discounted at a market rate of interest. income is reclassified to the income statement when Debt instruments are subsequently carried at amortised the hedge relationship ends. Hedge accounting is The turnover and operating surplus shown above are derived from continuing operations within the UK. cost, using the effective interest method. discontinued when the hedging instrument expires, no longer meets the hedging criteria, the forecast transaction Trade creditors are obligations to pay for goods or services is no longer highly probable, the hedged debt instrument that have been acquired in the ordinary course of is derecognised or the hedging instrument is terminated. business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or Public benefit entity concessionary loans (including less. If not, they are presented as non-current liabilities. debentures) Trade creditors are recognised initially at transaction price Concessionary loans arrangements, when received for the and subsequently measured at amortised cost using the purpose of furthering the primary objective of the Union, which effective interest method. include any debentures or bank loans received below the The derivative instruments utilised by the Union are interest prevailing market rate of interest are initially measured at the rate swaps and forward exchange forward contracts. amount received. In subsequent years, the carrying amount of concessionary loans in the financial statements is adjusted to Derivatives are initially recognised at fair value on the date reflect any accrued interest payable or receivable. a derivative contract is entered into and are subsequently re-measured at their value on the market price date from relevant counterparties. Changes in the fair value of derivatives are recognised in the Income Statement in finance costs or finance income as appropriate, unless

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 64 65

Consolidated Statement of Comprehensive Income Consolidated Balance Sheet for the year ended 31 May 2017 as at 31 May 2017

2017 2016 2017 2016 £000 £000 Notes £000 £000 Fixed Assets Surplus for the financial year 1,715 836 Tangible fixed assets 5 38,289 39,097 Intangible assets 6 206 71 Other Comprehensive Income: Investments 7 2 2

Cash Flow hedges: 38,497 39,170

Change in value of interest rate hedging instruments (10) (109 ) Derivative financial instruments: falling due after more than one year 10 225 - Change in value of foreign exchange hedging instruments (737) (353 ) Current Assets Derivative financial instruments 10 415 197 Other comprehensive expense for the year (747) (462 ) Debtors 8 5,901 6,476 Cash at Bank 2,021 - Total comprehensive income for the year 968 374 Cash in hand 15 10 8,352 6,683

Creditors: amounts falling due within one year 9 (14,129) (14,573 )

Derivative financial instruments 10 (1,090) (177 )

Net Current Liabilities (6,867) (8,067 )

Provisions for liabilities 11 (159) (48 )

Total assets less current liabilities and provisions 31,696 31,055

Creditors: amounts falling due after more than one year 9 5,047 5,598 Financial liabilities 10 617 340 Deferred income 12 1,798 1,933 Ten Year Debentures 13 1 1 Murrayfield Debentures 14 31,705 31,623 Irredeemable Debentures 15 97 97

39,265 39,592

Capital and Reserves General reserve 17 (6,502) (8,217 ) Hedging reserve (1,067) (320 )

(7,569) (8,537 )

31,696 31,055

The financial statements on pages 58 to 74 were approved by the Scottish Rugby Board and signed on its behalf on 13 July 2017 by:

Colin Grassie,Chairman

Mark Dodson, Chief Executive

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 66 67

Consolidated Statement of changes in equity Consolidated Statement of cash flows for the year ended 31 May 2017 for the year ended 31 May 2017

Capital Hedging 2017 2016 Reserve Reserve Total Notes £000 £000 £000 £000 £000 Net cash from operating activities 18 3,851 3,573 Balance as at 1 June 2015 (9,053 ) 142 (8,911 ) Cash Flow from investing activities Surplus for the year 836 - 836 Payments to acquire Tangible Fixed Assets (760) (831 ) Payments to acquire Intangible Fixed Assets (151) - Other comprehensive income for the year: Payments to acquire Fixed Assets (911 ) (831 )

Fair value gain/(loss) on interest rate derivative - (109 ) (109 ) Cash flow from financing activities financial instrument Repayment of bank loan (500) (500 ) Finance lease (3) (5 ) Fair value gain/(loss) on foreign exchange derivative - (353 ) (353 ) Interest paid on bank overdrafts and loans (276) (298 ) financial instrument

Net cash used in financing activities (779) (803 ) Total other comprehensive income - (462 ) (462 ) for the year Net increase in cash at bank and in hand 2,161 1,939

Balance as at 31 May 2016 (8,217 ) (320 ) (8,537 ) Cash and cash equivalents at the beginning of the year (125) (2,064 )

Cash and cash equivalents at the end of the year 2,036 (125 )

Balance as at 1 June 2016 (8,217 ) (320 ) (8,537 )

Surplus for the year 1,715 - 1,715

Other comprehensive income for the year:

Fair value gain/(loss) on interest rate derivative - (10 ) (10 ) financial instrument

Fair value gain/(loss) on foreign exchange derivative - (737 ) (737 ) financial instrument

Total other comprehensive - (747 ) (747 ) income for the year

Balance as at 31 May 2017 (6,502) (1,067) (7,569)

The hedging reserve is used to record transactions arising from the Union’s cash flow hedging arrangements.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 68 69

Notes to the Financial Statements Notes to the Financial Statements

1. Surplus on ordinary activities before taxation 2. Staff Costs (cont) 2017 2016 2017 2016 The surplus on ordinary activities before taxation is stated after crediting: £000 £000 Total Total Amortisation of deferred income 135 137 £000 £000 Barter transaction sponsorship income 1,075 1,099 Employment costs: Wages and salaries 21,849 21,883 And after charging: Social security costs 2,454 2,383 Auditors remuneration 29 28 Other pension costs 628 640 Auditors fees for non-audit services Tax compliance 8 13 24,931 24,856 Tax advisory 20 3 Other 22 11 At the year end the pension accrual was £390k (2016 - £234k). Depreciation charge for the year: Owned fixed assets 1,215 1,165 Amortisation charge for the year: 3. Net Interest Owned intangible assets 16 15 2017 2016 Operating lease rentals £000 £000 Plant & machinery 132 172 Interest payable on bank overdrafts (274) (323 ) Other 305 305 Amortisation of Debenture issue costs (82) (81 ) Barter transaction sponsorship costs 1,075 1,099

Administrative and management expenses 2,994 2,745 (356) (404 )

The rates of interest on the Union’s term loan borrowings are included in Note 10. 2. Staff Costs

The average monthly number of persons employed during the year who are involved in and support the Scottish game was: 4. Tax on surplus on ordinary activities 2017 2017 2016 2016 2017 2016 No. No. No. No. £000 £000 Current Tax: Rugby On profits arising from non-mutual trading - 10 Professional Players 99 105 Deferred: Professional Teams - Coaching & Operations 27 23 Origination and reversal of timing differences 292 361 National Team - Coaching & Operations 10 8 Movement in deferred tax unprovided (292) (361 ) Elite Development Players & Coaches 30 30 Domestic & Performance 76 75 - 10 Strength & Conditioning 15 16 Medical & Physiotherapy 17 17 Factors affecting the current tax charge for the period: 274 274 Surplus on ordinary activities before taxation 1,715 846 Stadium Operations 31 32 Commercial, marketing & other corporate functions 53 50 Corporation Tax at 20% (2016 - 20%) 343 169

TOTAL 358 356 Effects of: Net expenses not deductible for tax purposes 163 158 Crystallisation of tax losses (573) (357 ) Within these figures: Non-taxable mutual profits (150) (100 ) Domestic & Performance includes employees within the BT Academies, Domestic Rugby Support Services, Participation & Depreciation in excess of capital allowances 103 99 Development, Coach Development, Outreach & Equality, Schools & Youth, Domestic & Elite Refereeing, and Age Grade & Capital transactions 83 10 Other Coaches. Movement in other timing differences 31 31 - 10 Stadium Operations includes staff involved in Event Management, Ticketing and Stadium, Pitch & Grounds Maintenance.

Commercial, marketing & other corporate functions includes Commercial & Marketing, HR & Communications, Finance & IT, The Union has gross taxable profits arising in the period of £nil (2016 - £49k). Governance and Business Services.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 70 71

Notes to the Financial Statements Notes to the Financial Statements

5. Tangible Fixed Assets 7. Investments

Heritable Fixtures Other Assets Under The Union holds one €1.25 ordinary share in British & Irish Lions DAC, a company incorporated in the Irish Republic. The Union’s Property & fittings Equipment Construction Total investment represents a 25% holding in the issued share capital of the company. £000 £000 £000 £000 £000 The Union is the beneficial owner of 100 €1.00 ordinary shares in Celtic Rugby DAC, a company incorporated in the Irish Cost Republic. The Union’s holding represents 33% of the company’s issued share capital. As at 1 June 2016 47,689 14,359 4,613 - 66,661 Additions 204 292 207 35 738 The Union is the beneficial owner of 1,667 €1.27 ordinary shares in Limited, a company incorporated in Disposals (603 ) - - - (603 ) the Irish Republic and which is in liquidation. The Union’s holding represents 16.67% of the company’s issued share capital.

As at 31 May 2017 47,290 14,651 4,820 35 66,796 In addition to the above, the Union is a member of European Professional Club Rugby, a Swiss association, whose principal activity is promoting and managing the European Rugby Champions Cup, Challenge Cup and Continental Shield. Accumulated Depreciation As at 1 June 2016 11,582 12,632 3,350 - 27,564 The Union is one of three subscribers, the others being The Ltd and , to Great Britain Charge for year 697 230 288 - 1,215 Rugby Sevens Limited, a company incorporated in England and Wales, and limited by guarantee. Disposals (272 ) - - - (272 ) Given the disposition of the other shareholdings in these companies, and the immateriality of their net surpluses and net assets after receipt of dividends by the Union, the Directors do not believe that these investments fall to be treated as associate As at 31 May 2017 12,007 12,862 3,638 - 28,507 companies. Fixed asset investments are stated at the lower of cost and valuation.

Net Book Value 8. Debtors As at 31 May 2017 35,283 1,789 1,182 35 38,289 2017 2016 Amounts falling due within one year £000 £000 As at 31 May 2016 36,107 1,727 1,263 - 39,097 Trade debtors 4,760 5,668 Other debtors 285 240 Prepayments 856 568

6. Intangible Fixed Assets 5,901 6,476

Computer Assets Under 9. Creditors Software Construction Total 2017 2016 £000 £000 £000 Amounts falling due within one year £000 £000 Cost Bank overdrafts - 135 As at 1 June 2016 197 17 214 Obligations under finance leases - 3 Additions 6 145 151 Advance receipts 4,600 5,771 Trade creditors 1,594 2,507 As at 31 May 2017 203 162 365 Other tax and social security 2,538 1,307 Accumulated Amortisation Accruals 5,397 4,850 As at 1 June 2016 143 - 143 14,129 14,573 Charge for year 16 - 16

As at 31 May 2016 159 - 159 2017 2016 Net Book Value Amounts falling due after more than one year £000 £000 As at 31 May 2017 44 162 206 Bank loans 5,000 5,500 Other creditors 47 98 As at 31 May 2016 54 17 71 5,047 5,598

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 72 73

Notes to the Financial Statements Notes to the Financial Statements

9. Creditors (cont). Derivative financial instruments – Interest rate swaps 2017 2016 £000 £000 The Union has a term loan with Bank of Scotland of £5.0m (2016: £5.5m), with the balance being repayable in full on 30 June Finance lease obligations to which the Union is committed are due: 2020. The Union has also entered into an interest rate swap with the Bank of Scotland, which is used to hedge the Union’s In one year or less - 3 exposure to interest rate movements on the bank loan facility in relation to £5m (2016: £5m) of the term loan. This has fixed - 3 the interest rate on these borrowings over the period of the loan at an average rate of 3.491%.

The interest rate swap arrangement has a fair market value, being the net present value of future cash flows due under the swap compared to current interest rates. The fair value of the interest rate swap on 31 May 2017 was (£128k). The fair value Within Amounts falling due after more than one year, bank loans of £5m (2016 - £5.5m) are repayable in full by 30 June 2020. of the interest rate swaps in place on 31 May 2016 was (£118k). Security was granted to the Union’s bankers by way of a Bond and Floating charge over the assets of Scottish Rugby Union plc.

11. Provisions for liabilities 10. Financial Instruments

Tenant Treasury policy Deferred Club Residual Treasury activity is focused on monitoring working capital, managing interest rate risk and managing currency rate risk. Tax Fund Other Total Treasury activity is not a profit centre and the Union neither enters into transactions of a speculative nature nor trades in £000 £000 £000 financial instruments. Opening - 48 - 48 Transfer during period - 2 109 111 The Union has the following financial instruments: 2017 2016 Closing - 50 109 159 £000 £000

Financial assets that are debt instruments measured at amortised cost:

Trade Debtors 4,760 5,668 Deferred taxation comprises: 2017 2016 Other debtors 1,141 808 £000 £000 Accelerated capital allowances 1,231 1,567 Financial assets measured at fair value through other comprehensive income: Other timing differences 116 414 Derivative financial instruments 640 197 Trading losses carried forward (2,142) (3,033 )

(795) (1,052 ) Financial liabilities measured at amortised cost: Deferred Tax asset not recognised 795 1,052 Bank Loans & Overdraft 5,000 5,635 - - Trade creditors 1,594 2,507 Other creditors 12,582 12,028 Following due consideration of future anticipated taxable profits, the residual deferred tax assets on trading losses carried

forward has not been recognised on the basis that it will take some time for them to be fully recovered. The deferred tax asset will be fully recoverable should there be appropriate future taxable profits. Financial liabilities measured at fair value through other comprehensive income: Derivative financial instruments 1,707 517

Derivative financial instruments - Forward Contracts 12. Deferred income The Union enters into forward foreign exchange contracts to mitigate the exchange rate risk for certain future foreign currency Heritable Debenture 2017 2016 receivables. The forward foreign exchange contracts are measured at fair value, which is determined using valuation Property Premium Total Total techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the year end spot exchange £000 £000 £000 £000 rates. The fair value of the forward foreign exchange currency contracts at 31 May 2017 was (£939k) (2016: (£202k)). Opening 1,536 397 1,933 2,070 Amortisation in period (30 ) (105 ) (135) (137 )

Closing 1,506 292 1,798 1,933

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 74 75

Notes to the Financial Statements Notes to the Financial Statements

13. Ten Year Debentures 16. Leases Class of Value Max. No. 2017 2016 Debenture Issue Debenture Each Authorised No. issued No. issued Operating Lease commitments 2017 2016 2009 Debentures J £1 500 90 90 £000 £000 K £1 1,000 429 429 Land & Buildings; payable in L £1 200 78 78 1 year 374 374 2012 Debentures N £1 1,000 14 14 2 to 5 years 1,285 1,394 O £1 1,000 180 180 More than 5 years - 265

Debentures issued 791 791 1,659 2,033

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 17. General Reserve 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 2017 2016 Nations matches, the ticket is for a specific seat. £000 £000

Opening (8,217) (9,053 ) Surplus for the year 1,715 836 14. Murrayfield Debentures

Class of 2017 2017 2016 2016 Closing (6,502) (8,217 ) Debenture Value Each No. Authorised No. Issued £000 No. Issued £000 A £1,200 9,100 9,092 10,910 9,092 10,910 B £2,200 7,900 7,900 17,380 7,900 17,380 18. Reconciliation of operating surplus to net cashflow from operating activities C £3,500 1,000 1,000 3,500 1,000 3,500 2017 2016 Thistle £9,900 500 188 1,861 188 1,861 £000 £000 Operating surplus 2,402 1,250 Debentures issued 18,180 33,651 18,180 33,651 Depreciation charge 1,215 1,165 Amortisation charge 16 15 Issue Costs: Deferred income amortisation (135) (137 ) Opening 2,028 2,109 Tenant club residual fund 2 2 Amortisation (82) (81 ) Decrease / (Increase) in debtors 575 (1,020 ) Closing 1,946 2,028 (Decrease) / Increase in creditors (224) 2,298

Net Issue Proceeds less amortisation 31,705 31,623 3,851 3,573

The Murrayfield Debentures are unsecured, rank pari passu and are interest free. Repayment, at par, is at the discretion of 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 Debentures. Holders have the right to purchase a ticket for any event or match at the stadium for which the Union retains 19. Reconciliation of net cashflow to movement in net debt 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 a right to purchase certain matchday hospitality packages. 2017 2016 £000 £000 Increase in cash in the year 2,161 1,939 Amortisation of Murrayfield Debentures (82) (81) 15. Irredeemable Debentures Finance Lease 3 5 Repayment of bank loan 500 500 The 972 (2016 - 972) Debentures of £100 each (the 1925 Debentures) entitle the holder to purchase two tickets at BT Murrayfield Change in net debt during the year 2,582 2,363 for each match directly controlled by the Union. The debentures are interest free. Net debt at the beginning of the year (37,349) (39,712 )

Net debt at the end of the year (34,767) (37,349 )

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 76 77

Notes to the Financial Statements Five Year Summary

20. Analysis of net debt 2017 2016 2015 2014 2013 £000 £000 £000 £000 £000 31 May 2016 Cash Flows Other Changes 31 May 2017 Income 51,449 47,434 44,243 43,730 39,275 £000 £000 £000 £000 Cash in hand 10 5 - 15 Cash at bank (135 ) 2,156 - 2,021 Expenditure: Bank loans (5,500 ) 500 - (5,000) International and Finance lease due within one year (3 ) 3 - - Professional Rugby 24,967 23,988 22,761 23,614 20,884 Irredeemable Debentures (97 ) - - (97) Domestic and Murrayfield Debentures (31,623 ) - (82 ) (31,705) Performance Rugby 7,623 7,509 6,201 4,969 4,701 Ten Year Debentures (1 ) - - (1) Commercial and (37,349 ) 2,664 (82 ) (34,767) Operational 12,460 10,570 10,876 10,077 8,874

Club Support and Debentures have been treated as public benefit entity concessionary loans as they were received below the prevailing Development 2,766 2,937 2,772 2,251 1,932 market rate of interest and for the purpose of furthering the primary objective of the Union. Depreciation 1,231 1,180 1,053 1,257 1,100

49,047 46,184 43,663 42,168 37,491

21. Related Party Transactions Operating Surplus 2,402 1,250 580 1,562 1,784 Four of the directors of Scottish Rugby Union plc, Mike Monro, Rob Flockhart, Jim Littlefair and Edward A. Crozier were also Deficit on disposal of Fixed Asset (331) - - - - trustees of the Murrayfield Injured Players Foundation during the year. Scottish Rugby Union plc does not charge the charity for any administrative or other support that it provides and made no donation to it in the current year or previous period. Surplus on ordinary activities before interest 2,071 1,250 580 1,562 1,784 Fergus Neil, a director of Scottish Rugby Union plc until 20 August 2016, acts as a referee performance reviewer for domestic Net interest (356) (404 ) (556 ) (702 ) (926 ) and EPCR fixtures, on behalf of Scottish Rugby. The fee payable to Mr Neil for this service in the year up to 20 August 2016 was £nil (2016: £975). Surplus before taxation 1,715 846 24 860 858

Taxation - (10 ) - - - During the prior year to 9 August 2015, in which Ian Barr was a director of Scottish Rugby Union plc, £1k of ad hoc grounds and facility services were purchased from WH&R Barr, a firm in which Mr Barr is manging partner. Mr Barr was not a director of the Surplus for year / period 1,715 836 24 860 858 Scottish Rugby Union plc in the current year. Note (1 )

Capital Expenditure 889 732 1,040 1,558 534

22. SRU Group Note (1) – 2014 represents a 13 month period, ended 31 May 2014. Other columns represent one year, ended 31 May from 2015, The Scottish Rugby Union carries out all of its operations through its wholly owned subsidiary, Scottish Rugby Union plc, the and 2016 and 30 April other years. registered office of which is , 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 FRS102 from the need to disclose transactions between group entities that have been eliminated on consolidation in these group financial statements.

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 78 79

Commentary on the Financial Statements

This section provides a general commentary on the income and rugby team, which is supported by sportscotland, together expenditure categories for the year ended 31 May 2017. with associated programme costs, including travel, training and event costs are also included. Similarly, expenditure for Turnover the delivery of the programme related to funding from the Cashback for Communities grant is included here. Scottish Rugby’s turnover comes from a number of areas. National team match ticket sales, including the RBS 6 Nations The investment in The BT Sport Scottish Rugby Academy is and other home international matches, pro-club match included in this category, with costs including coaching, ticket sales, together with related broadcasting revenue facilities, programmes and players, kit, equipment and match provide a significant element of this. Match day income also venue and logistics. Specialist coaching costs are included includes revenue from pitchside advertising boards, match here, as are analysis and other rugby operational support costs. programmes and revenue from hospitality activities. The sale This area also includes investment in the exiles programme. of merchandise throughout the year is a further important source of income. Referee development, from grassroots to international level, includes the costs of referee coaching, travel to games, kit, Scottish Rugby is grateful for funding from its many sponsors and staffing and office expenditure for those employed in this including BT and Macron. All of Scottish Rugby’s partners are area. Referee costs also include salary, travelling expenses noted at the back of the Annual Report. Scottish Rugby is and associated costs for professional refereeing. also grateful for significant grant funding from World Rugby, sportscotland and the Cashback for Communities programme. Scottish Rugby delivers coaching courses throughout Scotland, Turnover also includes income from European Professional Club including United Kingdom Coaching Certificate (UKCC) ones. Rugby (EPCR) and the Guinness Pro12, and from other events The costs of these are included here and the delivery of this held in BT Murrayfield Stadium including dinners, business programme is part funded by sportscotland. This area also conferences, concerts and Christmas party nights. includes the staff in the Coach Development team, training and facility costs, and course resources, as well as tutor and Scottish Rugby’s family of sponsors are recorded. The activation Depreciation International and Professional Rugby registration fees. The costs of a number of other coaching costs of marketing campaigns, promotional materials, media resources and initiatives, including the on-line training hub, events and other operational activities are also included Depreciation is the annual charge in respect of Scottish The expenditure relating to the players, management, medical workshops and conferences, and Rugby Right are also part of here. Similarly included are the costs of other support staff Rugby’s fixed assets, primarily the redevelopment costs of and strength & conditioning teams involved in International this area’s expenditure. and programmes in the areas of ticketing, HR, procurement, IT, BT Murrayfield Stadium. and Professional Rugby is within this category. This includes finance, governance and business services. Finally, the costs of travel, food and accommodation at venues, salaries, kit, Finally, the provision of medical services from physiotherapists the communications and corporate affairs team and related laundry costs, travel insurance, training facilities, honours caps and doctors, for cover at various domestic and performance activity across the wide spectra of print, broadcast, web and and team coach hire for all of the Scotland teams playing at rugby events and matches are included here, as are related other social media are part of this category. international level. It also includes all Pro-club costs, being strength and conditioning costs. players’, coaches’ and support staff salaries together with kit, travel and other coaching costs, and match day outgoings Scottish Rugby is grateful for the support of sportscotland and Club Support and Development such as advertising, turnstile staff, ticket printing, venue World Rugby grants which assist in the delivery of a number of Registered Office Auditors preparation and entertainment. the above programmes. Scottish Rugby recognises that investment in the sport at BT Murrayfield Stadium PricewaterhouseCoopers LLP grassroots level is a key element in maintaining and growing the Commercial & Operational Edinburgh, EH12 5PJ Chartered Accountants and Expenditure in the provision of medical services, including game of rugby. Clubs are supported through the payment of physiotherapists, match doctors for the players, crowd doctors, Statutory Auditors Commercial and Operational costs cover various areas of Participation Monies, Player Accident Insurance, contributions and the medical supplies needed to support players involved in Bankers Level 4, Atria One, activity in Scottish Rugby. The running costs of the national to cup and league travel costs, the Club Sustainability Fund international and professional rugby is included in this category. 144 Morrison Street, stadium are included and these range from pitch repair and and the payment of all referees’ travel costs across the Bank of Scotland Also included is the investment in the strength and conditioning Edinburgh, EH3 8EX preparation to roof and other stadium maintenance, and country. Ticket commissions which clubs receive for sales of Head Office personnel who work with the National and Professional teams, include security, insurance, rates, electricity, gas and water, international and sevens tickets are included here as are player The Mound, together with the associated programme costs. all of which continue to ensure that BT Murrayfield remains a reward scheme payments, where clubs’ contributions to the Edinburgh, EH1 1YZ Solicitors suitable, safe, and well maintained venue. Also included are development of players who have gone on to win academy or Domestic and Performance Rugby Pinsent Masons match day and non-match day operational and staff costs, as professional contracts are acknowledged. The joint funding of Princes Exchange are other event management and entertainment costs. Club Development Officers in partnerships with both clubs and Grassroots investment, which is key in helping to develop the 1 Earl Grey Street, local authorities across the country is also part of club support players and coaches of the future, as well as maintaining and Marketing and commercial expenditure is included in this area, Edinburgh, EH3 9AQ and development expenditure. growing the game, is included in this category. The domestic where the costs of partnering with, developing and maintaining

Annual Report 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect 80

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Front cover Back cover Photography Editor Stuart Hogg and Rhona Lloyd celebrates SNS Group Bronwyn Torrie Annual Report Huw Jones Scotland Women’s win Produced by Designers 2016/17 Leadership . Engagement . Achievement . Enjoyment . Respect v Ireland 2017 against Wales 2017 Scottish Rugby Laura Chessar, Gemma Law