Duncan Taylor scores ’s second try in their first victory over in ten years.

Scottish Rugby All information correct at time of going BT Murrayfield, EH12 5PJ to print on 5 August 2016. Tel: 0131 346 5000 To download a copy please visit scottishrugby.org | @scotlandteam scottishrugby.org/annualreport Contents

4 6 8

Edward A. Crozier Sir Moir Lockhead OBE Mark Dodson President’s Welcome Chairman’s Review Chief Executive’s Report 10 16 18 Scotland Women, Women 7s 7s, Under 20 & Age-grades Looking After Players Warriors 20 22 24 Domestic Rugby Club Rugby, Women & Girls, Schools & Youth, Academy Coaching Pathways, Referees 34 40 42

Dominic McKay Chief Operating Moving Scottish Officer’s Report Rugby Forward Strategic Report

54 Independent Auditors’ Report 44 52 59 Primary Statements 64 Notes 75 Five Year Summary Governance & Financial 76 Commentary on the Board Report Statements Financial Statements

Leadership . Engagement . Achievement . Enjoyment . Respect 3 Edward A. Crozier

President’s Welcome Orkney I’m happy to report Scottish club rugby is in good health thanks to the support of our wonderful, passionate army of volunteers. I wish I could bottle their enthusiasm, Club Highlights dedication & energy. A heartfelt thanks to our dedicated Club of the Season: Annan RFC elected members of the Scottish Rugby Annan were recognised for creating a sustainable youth section Banff Council who work tirelessly on Scottish to future-proof their rugby community by dramatically increasing Rugby’s behalf. Special mention to the number of boys’ and girls’ teams while also building strong links Fergus Neil, Jim Stevenson and Bruce with local schools through coaching sessions. They have a strong Robert Gordon University Thompson, who are stepping down at women’s section and their men’s 1st XV won BT West 2 this season. the conclusion of this season. This image of Cartha Queens Park and Aberdeenshire at Dumbreck Can I thank in particular the chairmen encapsulates“ all that is great about our game - two teams and the of our Governance Working Party, country on another excellent season, referee gathering at the end of a hard-fought match & final game Magnus Swanson, and Championship which was celebrated at the annual of the season. Cartha finished third and Aberdeenshire fourth in BT Helensburgh Committee, Alastair Rae, both groups so Scottish Rugby Club Awards Dinner – a Napier National 2. Those values, tradition and ongoing legacy really does West of Scotland Club Awards fundamentally important to our game. fantastic evening that encapsulated University differentiate our from others. Edward A. Crozier Annan what club rugby is all about and my BT Club I was really happy the inaugural Club ” Ardrossan Kelso domestic rugby highlight of the year. BT Women’s Cumnock Garioch Development Conference, divised Club and spearheaded by myself and held Congratulations to our elite referees Mike Coach Phil Smith (Heriot’s) at BT Murrayfield in January, was an Adamson and Alex Pratt on their selection Gary Coupland unqualified success to be built on in for the 2016 Rio Olympic Games and Youth Coach (Annan) future years. Can I thank our Director of representing Scotland on the world stage, Duncan Domestic Rugby, Keith Russell, and Head alongside our Scottish players selected Referee McClement of Club Services, Nick Rennie, for putting for Team GB, Mark Bennett and Mark Caledonia Best Mike Dawson Robertson. I look forward to seeing our this conference together. New Women’s Teams Spirit of Rugby (M’field Wanderers) elite referees progress and work towards 9 At the half-way mark, Scottish Rugby’s BT Volunteer Peter Hill (Duns) international selection, while also inspiring £1.6 million Club Sustainability Fund Women’s Club of the Brigadier Frank future match officials. th Steven Rutledge has benefited 91 clubs and it’s great Record £2.94M Coutts Memorial Season: Garioch Ladies (Highland) to see some of the first recipients I commend the positive work of our family Club Support & Development (BT) Try 150 completing major projects with of charities, especially our own Murrayfield Garioch Ladies started five years Anniversary Injured Players’ Foundation, and urge Player of the Season additional sportscotland investment. ago as a keep-fit drive and the club’s None of this would be possible without clubs to support them where possible. committee now has an even split Peter McCallum BT Premiership the invaluable support of our sponsors, in of men and women members. The Another highlight was () It has been an absolute privilege to “ being asked to referee particular BT. serve as President of Scottish Rugby, team were undefeated this season, BT National Ben Johnston at the 150th Anniversary League 1 (Marr) A thrilling BT Cup Finals Day saw it’s been a life changing year full of gaining promotion into BT Women’s National Division 1. They also pitched celebrations between BT National Ross Gillies the country’s best in the men’s and wonderful memories and events. Can I Glasgow Academicals League 2 (Cartha QP) women’s club game compete for thank in particular my family and friends in to help their local community 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 £1.80m £1.90m £1.93m £2.25m £2.77m £2.94m and West of Scotland BT National Tony Herron coveted silverware. Not only did Heriot’s for their support. Likewise, my own when floods hit earlier this year. two of the founding League 3 (GHK) lift the BT Cup, after defeating Melrose club Cartha Queens Park and members of the SRU. BT Caledonia Andrew Findlater in a closely fought game, they also Scottish for proposing me to my position Scotland Club XV Regional (Highland) won the BT Premiership title and the and their unstinting support. This season’s squad entered the record It was an historic and Jamie Simpson BT East Regional BT Charity Shield – a unique treble. memorable day - (Earlston) Good luck to all clubs in Scotland books as the first Scotland Club XV to Murrayfield Wanderers claimed the at every level, our Exiles and our 250 remain unbeaten with a 52 - 27 victory although I did feel 150 Corrie Louw BT West Regional Women’s BT and Sarah myself after the game. (Oban Lorne) professional teams - Edinburgh Rugby People from over Counties at Gala RFC and Beaney Cup double for the second BT Women’s Emma Wassell and – and of course a 19 - 13 win over their Irish counterparts Congratulations to year in a row, following finals against Premier League (M’field Wanderers) our international teams for next season. in Cork to retain the Dalriada Cup. both clubs for all they Hillhead/Jordanhill. What a wonderful BT Women’s Audrey Barr Finally, to our incoming President Rob have contributed to achievement for both clubs. clubs Led by Phil Smith, Heriot’s Coach, 1 (Oban Lorne) Flockhart, to whom I pass the baton, 101 our game! attended our new Club squad was made up of the best talent BT Women’s Nicola Howat Well done to all the players, coaches, I wish him well and every success during ” Development Conference from the BT Premiership. Fraser Thomson Edward A. Crozier National 2 (Howe Harlequins) referees and supporters across the his time in office.

4 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 5 Sir Moir Lockhead OBE Chairman’s Review Ensuring players are safe on the pitch remains our highest £47.4M priority and we are proud to be leaders in this field with M our very strong medical team led by Dr James Robson. £46.6 Up NET INTEREST & DEPRECIATION Scottish Rugby continues to improve its £3.2M financial health while also increasing CLUB SUPPORT investment in growing the game and & DEVELOPMENT producing winning teams. I’m pleased TURNOVER to report our average debt fell to £8.5 TICKETING million during the year despite increased investment in players ahead of the 2015 £47.4M .

We are striving to achieve a sustainable We were delighted to announce model that benefits rugby in Scotland Scotland Women internationalist Jade DOMESTIC & PERFORMANCE and future-proofs the game. I am happy Konkel as our first full-time female with progress so far, but there is more to player. She is a wonderful role model be done as we look at other revenue and hopefully the first of many as we sources to ensure our sport thrives. strengthen the women’s and girls’ game through new initiatives. Turnover was £47.4m, which was £3.2 BROADCAST million higher than the previous year. The schools and youth conferences Additional income from sponsorship introduced this season have proved agreements, enhanced RBS 6 Nations a success with over 10,000 players broadcasting revenues and a more involved in nearly 1,900 games. It’s favourable euro rate contributed. These spurred clubs and schools to field more COMMERCIAL offset lower ticket revenues from two teams at all levels while also raising the & OPERATIONAL RBS 6 Nations games compared to three standard of matches. in the previous year and one August Test The long-standing problem of finding against three November Tests in 2014, as an appropriate ground for Edinburgh a result of the Rugby World Cup. Rugby is one step closer to being solved. Fewer home games meant commercial The club is set to play the second-half of and operational costs were lower, next season at Myreside, after forming however Scotland’s preparation and a partnership with George Watson’s participation in the Rugby World Cup College, with the intention of playing partially offset these. After brave the full 2017/18 season at the ground. performances in the pool stages, our Consultation with key stakeholders, national team came very close to including fans, is ongoing. making it to the final four and they Collaborating with partners and continued their form in the 2016 sponsors not only benefits our rugby RBS 6 Nations to finish fourth. community, it assists Scottish Rugby in In its first year, our BT Sport Scottish expanding the game. AVERAGE DEBT Rugby Academy has provided well- Finally, grateful thanks to everyone rounded athletes for our professional who has played their part in another and representative teams and I have no £8.5M successful season and, in particular, doubt the increased investment in the to our Council members and my regional structure, with the support of BT, Board colleagues. Club rugby and our Down will nurture our talented young men and volunteers remain the lifeblood of our women as they strive to reach the top £0.1M sport in Scotland. echelons of the game. INTERNATIONAL OTHER & PRO RUGBY Income Expenditure

6 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 7 Mark Dodson Chief Executive’s Report Our investment into the domestic game has never been Representation on international bodies higher and our support for emerging talent is stronger It is vital to have strong representation on international rugby bodies to bring Scottish posture and influence to the global game. than ever. Scottish Rugby has a voice at these forums by holding key positions around the table.

Creating winning teams, increasing revenue and creating sustainable clubs are among our new strategic priorities for next season and beyond. We need to focus our energy on what is best for the game in Scotland and plan for the future.

Our partnership with BT has been transformational, but as player salaries rise we need to consider other revenue The next generation made history streams to ensure we remain at the top twice this year – beating England for Six Nations European Professional table in world and European rugby. the first time during the U20 Six Nations World Rugby, formerly the IRB, is the Based in , Six Nations is the Club Rugby and Australia in their World Rugby U20 We are being forced to pay more for world governing body for . organiser of the annual Six Nations Based in Neuchatel, Switzerland, Championship opener. players as English and French clubs dig Based in Dublin, it overseas the laws of tournament, which began in 1883 as the EPCR is the organiser of the European deeper into their pockets to entice the Scotland Women also benefitted from the game and seeks to promote the Home Nations Championship. Each of Rugby Champions Cup and European world’s best to their teams. female players being involved in the development of rugby union across the participating nations is represented Rugby tournaments for Academy for the first time and had a the world. The Rugby World Cup is its on the Six Nations Council. teams which have qualified from their This impacts the ability of the Celtic flagship tournament. respective domestic leagues, the Aviva much improved Six Nations campaign. John Jeffrey nations to compete at European level. Premiership, the TOP14 and the Guinness Women’s and girls’ rugby is a priority John Jeffrey Council member As the professional game matures, the PRO12, as well as from the Challenge for us and while progress has not been World Rugby Council, and Vice Chairman cost of high quality players and coaches Cup Qualifying Competition. as fast we would like, we are making Executive Committee increases year on year. We must be Mark Dodson headway with increased investment and Head of Rugby Committee Robert Howat creative in finding ways to generate Council member and new initiatives. EPCR Board Director new income streams and still fund the Mark Dodson domestic game appropriately. This will The Scotland team enjoyed a strong World Rugby Council Mark Dodson be one of our biggest challenges in the season that ended on a high with and Audit and Risk Committee EPCR Board Director coming years. a series win in Japan. They were heartbreakingly close to a Rugby World We are proud to be leaders in player Cup semi-final and had their best finish welfare, however we need to do more in the RBS 6 Nations for three years, to ensure youth, club and elite athletes including their first victory over France in Rugby Europe Guinness PRO12 British & Irish Lions are safe while enjoying our game, which The European governing body for rugby The annual professional club rugby a decade at a sold-out BT Murrayfield. A rugby team selected from the home is why we are increasing the number of represents the interests of 49 nations. competition involving 12 teams from unions – Scotland, England, Ireland, World Rugby First Aid in Rugby courses Our pro clubs had a disappointing Its role is to develop and manage Scotland, Ireland, Wales and Italy is run Wales – which tours every four years to and introducing innovative concussion European season with neither team European rugby through all its members, by Celtic Rugby Limited. Kicking off in the southern hemisphere. The British & awareness campaigns. making it out of the pool stages. in collaboration with World Rugby, within September, the competition culminates Irish Lions will tour New Zealand in 2017, Edinburgh Rugby will remain in the a global framework of regional areas. in May with final-four play-offs and a The mental health of our professional following their 2013 Test series win Challenge Cup after finishing outside final, which Scottish Rugby hosted this players is just as important as their Dee Bradbury over Australia. the top six of the Guinness PRO12. season at BT Murrayfield. physical wellbeing. This holistic approach Scottish Rugby representative Mark Dodson will see players assessed and supported Glasgow Warriors made it to the PRO12 Ian Rankin Dominic McKay Board Director appropriately, including those in the BT play-offs for the fifth consecutive year, Celtic Rugby Board Director Rugby Europe Board Director Sport . but their season ended in Galway and Andy Irvine and Executive Committee Dominic McKay Connacht went on to lift the trophy in Board Director In its first year, we started to see real front of a record PRO12 Final crowd at Celtic Rugby Board Director benefits of our regional Academy BT Murrayfield. and Chairman Commercial and structure with players moving onto full Marketing Committee contracts with Edinburgh Rugby and Thank you for your continued support and I look forward to another successful Jenny Maxwell Glasgow Warriors while also enjoying success with Scotland under-20. year for Scottish Rugby.

8 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 9 Scotland

Scotland raised the bar this season and won nine of their 16 Tests, scoring 41 tries in the process. They were just minutes away from a Rugby World Cup semi-final and had their best finish in the RBS 6 Nations for three years, scoring a record number of tries.

Mark Bennett was nominated by World In arguably the match of the Rugby for Breakthrough Player of the tournament, Scotland continued their Year, made the shortlist free-scoring form, registering 34 points for World Rugby Player of the Year and at , however were won RBS 6 Nations Player of cruelly defeated by the eventual finalists the Championship. with the last kick of the game putting the Wallabies ahead by one point. Head Coach has instilled belief and continuity to the squad. He’s Despite the heartbreak, Scotland harked back to the traditional Scottish took a raft of positives and increased way of playing – hard, intuitive and free confidence into the 2016 RBS 6 Nations, flowing – and BT Murrayfield is becoming where they scored a record 11 tries and a difficult place for visiting teams to win. 122 points to finish fourth.

A RWC quarter-final, an improved RBS 6 Nations and “ Scotland debuts: made 9 a solid tour in difficult conditions against Japan saw a Hugh Blake, Mike Cusack, Zander 100 9 offloads - 4th highest in RWC year where players showed character and grit, where Caps Fagerson, John Hardie, Damien probabilities for victories were improved, and winning - Hoyland, Rory Hughes, Huw Jones, 4 Scotland’s top even if it had to be ugly – was key. Stuart McInally, Willem Nel, Rory RWC try-scorer Vern Cotter | Scotland Head Coach ” Sutherland, 50 Caps Both Richie & Alasdair missed just 2 tackles August Tests 2015 2 The results of the gruelling three-month The win over Italy in entered the Dickinson each in RWC Rugby World Cup camp were evident in record books with Scotland tallying Ireland 28 – 22 Scotland John Barclay their summer Test performances. their highest away points total in the Richie Gray is Scotland’s Italy 12 – 16 Scotland Greig Laidlaw Championship, while the victory over 99 most-capped forward Stuart Hogg Following the initial loss to Ireland in Scotland 48 – 7 Italy played France at a sold-out BT Murrayfield was Dublin they gathered steam with back- France 19 – 16 Scotland the team’s first success over Les Bleus for to-back wins against Italy. The first, a 362 minutes ten years. Rugby World Cup 2015 out of 400 minutes tense encounter in Turin followed by a Greig during the five RWC games five-try dismantling at BT Murrayfield, in Scotland ended the season on a high Japan 10 – 45 Scotland front of a record summer Test crowd. and kept their unbeaten Test record Scotland 39 – 16 USA Laidlaw against Japan with two hard-fought A narrow defeat to France in Scotland 16 – 34 South Africa wins in difficult conditions – a taste of concluded the summer series, but Samoa 33 – 36 Scotland what’s to come at RWC 2019. 53 caps Player of the Scotland’s decision to go for a try rather Australia 35 – 34 Scotland became most capped than a penalty kick to equalise showed RBS 6 Nations 2016 Scotland captain (26) Championship immense belief heading into rugby’s scored by Scotland during the Scotland 9 – 15 England showpiece tournament in England. viagogo Autumn Tests Wales 27 – 23 Scotland 536 points The Scots repaid their significant second-top points scorer 178,119 Italy 20 – 36 Scotland travelling support with a number of in 2016 RBS 6 Nations (62) stand-out showings, scoring an average Scotland 29 – 18 France supporters watched Scotland’s three of 34 points per game in the pool Ireland 35 – 25 Scotland home games at BT Murrayfield 79 points rounds, defeating Japan, USA and Summer Tour 2016 5th top points scorer in RWC 2015 Samoa to qualify for the last eight, Scotland v Italy 43,831 Japan 13 – 26 Scotland where Australia awaited. Scotland v England 67,144 Japan 16 – 21 Scotland 83% kicking accuracy in RWC 2015 Scotland v France 67,144 16 Tests | 9 Wins

10 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 11 Scotland Women Scotland 7s

Scotland Women made great strides in aspects of the game and had improved Scotland 7s made history performances during the Women’s Six Nations, but there is still plenty of work to be at the London 7s where done to close the gap with other nations. they claimed their first Cup victory in the HSBC World

Following monthly camps at the start of Series. 2016 Women’s Six Nations the season, a new selection fixture was Dougie Fife crossed the line twice in held at BT Murrayfield in October with Scotland 0 – 32 England the dying seconds of the final against East/South lifting the Donna Kennedy Wales 23 – 10 Scotland South Africa to clinch a 27 – 26 win. They Cup and Karen Dunbar awarded the Italy 22 – 7 Scotland claimed silverware in a further three Keri Holdsworth player of the match. Scotland 0 – 24 France tournaments, lifting the Bowl in Cape A squad of 37-players travelled to Ireland 45 – 12 Scotland Town, Singapore and Paris, and Valladolid in Spain in November made the Bowl final on another for a ten-day training camp, which three occasions. received significant funding through

the European Commission’s Erasmus+ Scotland Womens 7s As a reward for the personal Following two preparation programme and culminated in a performance throughout the season, tournaments in Amsterdam and friendly international against Spain, seven Scottish players were selected London, a squad featuring seven Scored 1021 points this season which the visitors won 34-10. for the GB 7s squad, the wider training new caps made it to the final at Following a camp in December, the group for this summer’s Olympic Games. the first leg of the Rugby Europe squad regrouped for a week-long Of those selected, five were full-time Sevens Women’s Trophy in Prague, camp in January ahead of the members of the Scotland 7s programme. Finished under new Head Coach Graham Women’s Six Nations, which saw Lisa Mark Bennett & Mark Robertson made Shiel. They made the final four in Thomson, Debbie Falconer, Rhona the final selction for Rio. th Hungary after topping their pool and 103 Head coach, Calum MacRae said: 163 10 collected bronze overall. Tries in the World Series Overall, there has been a vast improvement and “Under the new sevens development “ Megan Gaffney added her rankings the squad has made great strides in aspects of the model, the squad has been very

experience from time spent with Conversions game. This is the start of our journey and the reality is competitive throughout this season and the GB sevens squad earlier in the has further developed Scotland players there’s still lots of work to do, but the momentum has season, while Stephanie Johnston with exposure on the world stage. Scotland players in Jamie Farndale Voted Player of been created. continued to train full-time with the Team GB at Rio the Year by the squad, in his first season. ” “Although we qualified for fewer Cup 2 Shade Munro | Scotland Women Head Coach support of Scottish Rugby in a bid to Mark Robertson & Mark Bennett competitions than last year, we were reach Rio, but ultimately missed out Wider training group for the Olympics competitive in all ten tournaments. on final squad selection. - Gavin Lowe, Jamie Farndale, Scott Lloyd and Helen Nelson win their 57 first caps in front of home crowds at “The Series included an extra leg in a Riddell, Lee Jones & Joseva Nayacavou. matches Broadwood Stadium, Cumbernauld. condensed calendar and the intensity th World Rugby Scotland Women of competition increased with full The squad also featured nine BT Sport ranking 7s players won internationalists chasing an Olympic 27 13 Scottish Rugby Academy Stage 2 226 tries 11 their first caps place for their respective countries and points players, including new captain Lisa Scotland 7s players made Martin, throughout the campaign. teams completing final preparations their debut for Rio. top points 135 4 Though they did not score at home scorer, Captain points players selected to caps won by prop against England and France, they Scott Wight showed what they are capable of train with GB Rugby We peaked towards Heather Lockhart “ 82 against the eventual runners-up and 2 Women’s 7s the end of the Series Championship winners. players completed with strong showings in Won players UKCC Level 1 On the road, the team scored against in Rugby Europe Singapore, Paris and our 20 featured this Wales, Italy and twice against Ireland, rd coaching course rd Sevens Women’s first Cup win in London. the only side to achieve this in Dublin, season, 26 at Valladolid Camp 33 Trophy 32 and conceded fewer points than A great way to end the including five Drew Lost previous years. season. fully-capped 2 23 Lisa Martin Calum MacRae” | 7s Head Coach internationalists.

12 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 13 Scotland U20 Scotland Age Grades

Scotland under-20 enjoyed a historic season breaking new ground on four occasions Scotland U19 Development across their ten competitive games. Scotland under-19 Development Squad played Japan National Schools when they visited Edinburgh in March. The nation’s senior age-grade side The Scots came out on top in the first won four matches this season, two of game at Inverleith, but conceded which against sides Scotland had not a last-minute try at Meggetland the previously defeated at under-20 level, following weekend. England and Australia.

In his first year at the helm, Head Coach Scotland U19 Development John Dalziel guided the side to victories Scotland U19 22 – 14 Japan Schools over England and Italy in the Six Nations Scotland U19 7 – 10 Japan Schools to finish fourth overall. Scotland U18 The squad re-grouped for a camp at the Font Romeu high-performance The squad gained valuable experience training centre in the French Pyrenees, competing against other countries at Scotland Under-19 where the senior national side had this level with four matches against the prepared for the 2015 Rugby World home nations. Scotland Women U20 Cup, for intense high-altitude training The young Scots were defeated 15-39 The programme aims to identify, develop ahead of the World Rugby Under-20 by England in a friendly ahead of the Tom Galbraith & Murray McCallum and prepare young players to progress Championship in Manchester. inaugural U18 International Series in Wales over Easter, where they narrowly to the Scotland Women squad. Head “ It was an honour to be involved with such a strong lost to the hosts in their opening match. Coach Ross Miller and Assistant Coach group at a key stage of their development. Hopefully Dean Kelbrick were appointed to take U18 International Series charge this season. Training camps the experiences they’ve gained this season has further Scotland U18 30 – 31 Wales U18 included two friendly games before a developed their rugby and a large proportion go on to Test against Belgium Women in Brussels, Scotland U18 0 – 43 Ireland U18 secure professional contracts and earn full where three BT Sport Scottish Rugby Scotland U18 24 – 45 England U18 Scotland caps. ” Academy Stage 2 players featured. John Dalziel | U20 Head Coach Academy players selected Scotland U16 Reds & Blues Scotland Women U20 for Scotland U20 They recorded two wins in the pool 19 Two under-16 sides competed at the Scotland 25 – 5 Royal Air Force stages for the first time, defeating 2016 Conwy International Rugby Festival Scotland 24 – 0 Australia and Italy to place sixth at players featured against Welsh, French and Italian teams. Belgium Women U20 65 – 5 Scotland the close of the group matches, 37 in 10 games another first. This was the first time two squads, involving 50 players from schools and Despite two resilient displays in the clubs across the country, were selected Scotland Women U19 7s 5th-8th play-offs, they were unable to 13 to provide opportunities for more young record a third win and finished eighth Tries players to further develop their skills An under-19 women’s team represented - the same as last year, which was scored in the Six Nations and experience playing against other Scotland in sevens at the Sainsbury’s their best placing. countries at this level. Schools Games in Manchester for a third year.

U20 World Rugby Championship Colwyn Bay Rugby Festival It has provided a development route U20 Scotland 15 – 10 Australia Scotland Reds 12 – 29 Welsh Ac. for a number of players who have graduated into senior women’s squads Scotland 24 – 6 England Scotland 0 – 44 England Scotland Reds 5 – 41 France East and earned caps at international Wales 18 – 15 Scotland Scotland 27 – 19 Italy Scotland Reds 12 – 20 RGC level. Coached by Scotland Women Italy 14 – 24 Scotland 5th-8th play-offs: Scotland Blues 5 – 22 RGC internationalists, Megan Gaffney and Scotland 21 – 36 France Scotland 19 – 35 Australia Scotland Blues 0 – 19 France W Lindsey Smith, the team recorded their George Taylor Ireland 26 – 18 Scotland Scotland 19 – 42 Wales Scotland Blues 19 – 28 Welsh Academies Louise McMillan best finish of 7th.

14 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 15 Looking after players

Every sport carries a degree of physical risk, but we believe the health and social First Aid In Rugby for our professional and BT Sport Scottish Rugby Academy players centred benefits of being active and enjoying sport are far greater. The outcome of many injuries can often around mental health, peer support, be improved by very simple first aid skills anti-doping, alcohol awareness and from bystanders until emergency help professional development off the pitch. Scottish Rugby is committed to player RugbyRight arrives. World Rugby First Aid In Rugby welfare at every level of the game and (FAIR) Level 1 aims to equip parents, We are collaborating with the Scottish Our online training course RugbyRight is our medical and coaching teams are club officials, coaches, referees and Football Association, which is running for all coaches, teachers and referees. at the forefront of research and new players with basic skills that may be a pioneering interventional research It focusses on developing player welfare initiatives. needed at training sessions and games. project on mental health involving and safe coaching principles with an professional players answering a Keeping Young Players Safe emphasis on concussion management, questionnaire. If issues are flagged, a anti-doping, safe contact techniques Rugby for young people at schools 258 people completed FAIR medical or psychology review will follow. and law updates. and clubs exists in different forms, both Level 1 over past two seasons non-contact and contact depending Pitch-Side Care on age. Significant work has been done Scottish Rugby will double the 25 Scrumcaps is a course developed by to develop a structured progression number of courses to 25 next season Scottish Rugby to train qualified medical to cover the introduction, playing, staff in advanced pitch-side care teaching and refereeing of the game 4,880 people Concussion App and is endorsed by the Pre-Hospital from child to adult level to maximise completed RugbyRight Scottish Rugby is working with a software Care faculty of the Royal College of player safety. We continue to offer neck developer to create a smartphone and Surgeons of Edinburgh and is recognised strength testing and physical maturity coaches 484 tablet app to assist in identifying and by the Association of Chartered tests for young players who want to completed StartRugby practical managing concussion in professional Physiotherapists in Medicine. play up a grade, though the number of workshop sessions for new coaches and community rugby. requests remains minimal. Medical staff working with our national • Enable medics working in and age-grade teams are Scrumcaps Player Insurance professional rugby to access Level 3 certified. Graduated Contact If In Doubt Sit Them Out Serious injuries are thankfully very rare players’ baseline testing no contact BT Premiership clubs are already within rugby in Scotland. Players within P1-3 Scottish Rugby has been a leading electronically for Head Injury / TAG rugby required to put a doctor and Scotland are provided with appropriate (aged 5-8) force in creating a range of concussion Assessments physiotherapist through Scrumcaps catastrophic injury insurance cover. education packages in conjunction • Streamline process of sharing HIA Level 3 to ensure awareness of Generally, cover runs from age four with World Rugby. We led the ground- P4-7 below the waist reports with pro clubs appropriate standards of care. We are to 55. A range of benefits are also breaking “Scottish Sports Concussion (aged 8-12) tackling proposing to run Scrumcaps Level 2 available to those playing under the Guidance - If In Doubt Sit Them Out”, • Aim to roll it out to all rugby clubs (scrummaging courses for the first time next season for Golden Oldie laws up to the age of 79. endorsed by the Scottish Government. and schools so parents, players introduced at P6-7 National 1 and National 2 medical staff. Published a year ago, it’s intended for and coaches have easy access to aged 10 -11) It is compulsory for all member clubs the general public and participants concussion guidelines to participate in Scottish Rugby’s Club across all sports. Scottish Rugby’s Chief 64 38 Accident Insurance Scheme, which S1 Full contact, with • Anonymous reporting function to Scrumcaps Scrumcaps Medical Officer Dr James Robson and provides injury cover to those playing (aged 12-13 / variations in the provide Scottish Rugby with more candidates candidates the group are discussing what is next for for an insured team at Scottish Rugby’s U13) scrum and line out accurate data on concussion completed Level attended Level 3 this world-first guidance. expense. All schools affiliated to Scottish 3 course this refresher course Rugby benefit from Scottish Rugby’s season this season Holistic Health Schools’ Personal Accident Scheme.

We’re moving towards a holistic “ It’s important to remember that while we’re trying approach for professional player to make things better in sport, we’re also improving welfare and will be assessing both the management and recognition of concussion in the physical and mental wellbeing and community. ” providing support where necessary. Dr James Robson | Scottish Rugby Chief Medical Officer A Scottish Rugby working group has been formed to look at a range of Dr James Robson measures to be rolled out next season

16 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 17 Glasgow Warriors

Glasgow Warriors reached the Guinness PRO12 play-offs for the fifth consecutive year, Warriors but fell short of reaching the final and the chance to retain the trophy. Breaking in the Community Commerical Records Engaged with over Despite having 21 players at the Rugby The win over Munster in Kilmarnock Guinness PRO12 Trophy Tour 300 young people World Cup representing Scotland, , in February kicked off an impressive miles covered & stops 620 6 across the season, supported by Tonga, Italy and USA they went on to nine-game winning streak, where 4,500 Season Tickets Rory Hughes, Ryan Wilson, be top try and points scorers in the they overcame Ulster and Leinster at > 10,000 people Gordon Reid and Fergus Scott. Guinness PRO12. as well as back-to-back wins in Italy. The challenge posed by the Rugby Sponsors, Partners & players attended 106 Business Club Members World Cup and RBS 6 Nations was Defeating Leinster, despite being 550 Young Warrior camps also an opportunity for a number of decimated by injury, was a key moment Annual Awards clubs & schools Hearts & Balls emerging players to step up with the in the season as it inspired the squad to 514 Dinner Attendees HELPING RUGBY HELP ITS OWN 56 involved on match nights likes of and BT Sport get back into play-off contention. £8,615 Scottish Rugby Academy players Scott raised for Hearts & Balls at In the final home game of the season, player Cummings, James Malcolm and 470 appearances Glasgow Warriors Awards Dinner several stalwarts marked their last SOLD OUT! making an impact. appearance at Scotstoun with a Jonny Gray also gained valuable resounding 70-10 victory over Zebre – Harper MacLeod Scotstoun experience as captain and performed their biggest victory in the club’s history. Club Deck Stadium consistently well throughout the season, Jerry Yanuyanutawa, Leone Nakarawa 12 times 9 times while the new signings integrated and were among the both on and off the pitch and Italian departing players with Nakarawa international Simone Favaro was voted scoring a hat-trick and Weir converting Player of the Season by supporters. all ten kicks. Guinness PRO12 Most tries Most points After a mixed start to the season, After losing to Connacht 14-7 in the & the Warriors secured back-to-back last match of the regular season, 68 557 victories over in December and the Warriors returned to Galway the a win over at Rugby Park, following week and were defeated 16- Dream Team Kilmarnock in January in their European 11 in the play-off. Leone Nakarawa Rugby campaign. Unfortunately, the Off the pitch, the Warriors enjoyed Try of the season wins were not enough to progress past a swell in support with a record 106 Tommy Seymour the pool stages of the Champions Cup. th sponsors, partners and Business Club v Ulster 25 March Jonny Gray Members backing the club. “ It was disappointing not to secure a home play-off in our last regular league game of the season, and we The Famous Grouse Bothy hospitality suite was launched and ScottishPower 7 didn’t perform anywhere near our best in our semi-final was secured as the first community New Centurions: against Connacht. We’ll be working hard to use that sponsor in a six-figure deal. experience and all that we learned throughout the A record 4,500 Season Tickets were sold Try of the month season, to become a better team next season. and over 99,000 fans attended home ” games with all but two selling out at | Glasgow Warriors Head Coach ScottishPower Warriors Scotstoun. The players continued to Heavy rain and subsequent flooding at give back to the community by getting Rugby Championship Chris Fusaro Scotstoun saw a further game moved involved in hundreds of events and over New competition featuring 672 Ryan Wilson and plans to replace the turf with 500 children attended Young Warriors players from 16 schools. Carrick Duncan Weir an artificial pitch drawn up. The new rugby camps. Academy won the Championship, Peter Murchie pitch, funded by Glasgow City Council, which was launched to provide Scottish Rugby/Glasgow Warriors and further opportunities for new rugby Finn Russell sportscotland, is expected to be ready Tommy Seymour playing schools in the region. ahead of next season.

18 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 19 Edinburgh Rugby

Edinburgh made a promising start to the season but were unable to build on their early Guinness PRO12 Record crowd at a Guinness PRO12 Scottish derby victories with a mixed bag of results in the latter half of the season. Dream Team Cornell Du Preez (8) They claimed eight victories at home Ahead of next season, Edinburgh either 23,642 in the Guinness PRO12 – including wins signed or extended contracts of 29 players involved supporters at BT Murrayfield over top four finishers Leinster, Glasgow players. Of those, 10 are full Scotland 7 in Rugby World Cup Warriors and Ulster – and triumphed in caps and a further twelve are Scottish all three European Challenge Cup pool qualified, demonstrating the club’s players games at BT Murrayfield. commitment to develop young talent 8 in the RBS 6 Nations and creating a platform for players to Alan Solomons’ side started with a flurry progress into the upper echelons of the players winning four consecutive games to open international game. in Japan tour their league campaign, which saw them 8 sit top of the table, before experiencing Off the pitch, it was announced a poor run of results in autumn. Edinburgh will pilot a move to Myreside, in partnership with George Watson’s centurion During this period, Edinburgh had 100 College next season. seven players on international duty, contributing to Scotland’s run into the Work is underway to enhance the Rugby World Cup quarter-final stages. existing facilities to make sure the venue This challenge presented an opportunity delivers a great matchday experience Commercial After a positive start to this year’s campaign, long- for young, Scottish talent, including and to ensure the transition from “ 4 new sponsors Scotland under-20 stars BT Murrayfield to Myreside is a smooth term injuries to experienced players contributed to us and , to cut their teeth in one for the team and supporters. tailing away in the second half of the season. However, the professional game and make their this challenge opened the door for our young players 15% Consultation has taken place with key increase in sponsors joining the mark in the black and red. to get more game time, which will benefit our depth stakeholders and fans and if the trial #ERfamily Among a mixed-bag of results during period is deemed a success, the club next season. It’s great to see our young Scottish players November and December, Edinburgh intends to enter into a longer term establishing themselves and certainly bodes well for retained the 1872 with partnership with George Watson’s the future of the club. ” 10% back-to-back wins over Glasgow College, that would see the team Alan Solomons | Edinburgh Rugby Head Coach increase in revenue-generating Warriors in front of a record crowd of playing there full time from 2017/18 sponsors 23,642; a 50% increase on the - a clear opportunity to drive the club previous season forward, both on and off the field. Community stats Edinburgh claimed four victories from six Edinburgh Rugby has grown games in their European Challenge Cup commercially over the past 12 months campaign, yet a defeat to Grenoble with four new sponsors joining the 865 in the final round of the pool stages partnership family. This growth is on young people attended dashed hopes of progressing to the target to continue next season. Edinburgh camps knockout stages and reaching the The local rugby community remains at competition final for a second year. the heart of the club as does working 800 Curtailed by injuries to a number of with young people, with 81 completing youngsters were involved in frontline players, Edinburgh experienced the Game On programme and a further sessions with the squad during a tough run in the latter half of the season 90 completing other initiatives through one blitz afternoon at schools recording two wins from eleven games in the club, including Tomorrow’s People, and clubs in December the PRO12, where they finished ninth. Evolve and The Prince’s Trust.

They did enjoy success through their 7s 1675 side, coached by club stalwart Roddy young players involved in pre- Grant, who lifted the historic Melrose 7s match activity on match nights Ladies’ Cup, on their first invitation to Phil Burleigh the tournament.

20 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 21 BT Sport Scottish Rugby Academy The BT Sport Scottish Rugby Academy is already making £2.5million Regional a positive impact on deepening the pool of players First Breaking new ground capable of competing at the top levels of the game. full-time bases Work has begun on a new £2.5million 4 female extension at Edinburgh Napier University’s Borders & In its first year, 95 of Scotland’s most Sighthill campus, host and partner of Borders College promising male and female rugby player the BT Sport Academy. The two-storey and Heriot-Watt University players were selected to be Stage 2 or Jade Konkel sports centre extension will host a multi- Stage 3 Academy players, supported Caledonia use strength and conditioning gym, to train at one of the four regional Hillhead Sports Campus rehabilitation space, Academy offices centres with Stage 3 aligned to a Challenges and opportunities varied for and Aberdeen Sports Village and studio research facility. professional club. each region, from geographical spread Edinburgh Young talented players were also to the quality and quantity of players Putting down roots Napier University nominated for Stage 1 skills camps, available for selection. However, each Former Minister for Sport, Jamie Hepburn, Glasgow & West Academy was given the flexibility to find joined Scottish Rugby and NL Leisure to pathway sessions and matches. Broadwood Stadium regional solutions within the national unveil a new purpose-built hub for the BT Of the 403 players involved in under-16, framework to suit their rugby community. Sport Academy at Broadwood Stadium Full-time under-18 and under-20 matches at in Glasgow and the West. Three pillars of player development Academy staff five venues across the country, 43 22 were BT Sport Academy athletes, with are the focus of the Academy - high Scotland internationalist and Hillhead 39 coaches from the domestic game performance behaviours, rugby Jordanhill captain, Jade Konkel, joined by six BT Sport Academy Skills and athletic capacity. Developing became the country’s first full-time Coaches in managing the teams. leadership, accountability and responsibility is also crucial to the female rugby player. The 22-year- A number of Academy players have new structure. old number 8, who has 23 Scotland gone on to sign senior professional Women caps, left her day job as a contracts at clubs, including Glasgow Player contracts were updated to allow veterans’ care assistant to become Warriors and Edinburgh Rugby, while broader employment or study to give a Stage 3 player BT Sport Scottish Rugby Academy. “ It’s good to see the foundations being brought to fruition and now the hard work really starts. I am delighted with all of the partnerships that have come Academy female male female on board and their commitment, along with that of 95 players 16 players 19 players 9 players BT Sport, to Scottish Rugby has been instrumental in played for Scotland U20 played for Scotland Women providing the platform for the future of the game. We have taken ownership of our own destiny which is Academy players of Scotland U20 squad were Academy players massive for our sport. ” going pro 55% Stephen Gemmell | Head of Academy & Performance Programmes Lewis Carmichael|Edinburgh Rugby

Jack Cosgrove|Edinburgh Rugby nine female players helped lift Scotland the players another focus alongside Andrew Davidson| Women’s performance during the 2016 their rugby and to help develop the Women’s Six Nations and 19 played for person as well as the player. As a Ali Price | Glasgow Warriors Scotland under-20 over the season. consequence, 91% of players fulfilled another occupation or form of | Glasgow Warriors The significant annual investment to run education alongside the programme, James Malcolm | Glasgow Warriors the BT Sport Academy also received helping to produce more rounded Scott Cummings | Glasgow Warriors substantial support from partnerships in athletes with a secondary career the regions. option for those who don’t become Robbie Fergusson |London Scottish professional athletes. Ross Graham | Yorkshire Carnegie

22 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 23 Club Rugby

Club Sustainability Fund - £1.6 million over 4 years Scottish Rugby continues to deepen the support for clubs and increase the investment thanks to our partnership with BT. 2014/15 2015/16 2016/17 2017/18 Capital and Revenue strand: 26 clubs £2 million FastTrack strand: received between £10K - £60K to sportscotland grants 65 clubs received Our regional Club Services Managers we have supported clubs to recruit 91 develop facilities or employ business unlocked to further up to £2K for small have led a range of support initiates for volunteers with new skill sets to do clubs benefited so far development posts to generate income assist projects facility projects clubs this season to overcome off-field specific roles. This has seen a rise in challenges and operate like women volunteering, with more now small businesses. sitting on committees and boards and Club Champions Volunteer of the Season Over 90 clubs engaged in business becoming club presidents. Peter Hill is a stalwart of Duns having planning support At the half-way point of Scottish Rugby’s BT Premiership BT East 1 £1.6 million Club Sustainability Fund, We are also making strides in keeping been involved with the Borders Regional Moving Forward club 91 clubs have benefited with many young players in the game when they club since their inaugural season workshops delivered to 160 people Heriot’s St Boswells also securing a share of over £2m from move into adult rugby. This is a major of 1959/60, whether playing for the from over clubs 40 BT Charity Shield BT East 2 the sportscotland lottery fund towards challenge for all sports when young 1st XV or using his skills as a former Over 50 guides and best practice their capital projects, thanks to our people leave school to start work or builder to reshape the clubhouse on Heriot’s Penicuik resources on the Club Services section streamlined application process. tertiary education. This season, two thirds two occasions since the 1960s. The on scottishrugby.org of players continued to play rugby in current project received funding BT Cup BT East 3 Our new Club Development Conference Scotland compared to half three seasons from the Club Sustainability Fund and was a success with 250 people from 101 Heriot’s Earlston ago as a result of an increase in student sportscotland. clubs attending. Workshops covered Royal Bank RugbyForce BT Shield BT West 1 rugby and providing clubs with relevant improving club facilities, connecting tools to retain players. Carrick Glasgow Accies Over 120 clubs BT Bowl BT West 2 Supporting clubs off the pitch to ensure they’re received £200 or £1,000 “ Millbrae Annan sustainable is at the core of our new initiatives and 10 clubs welcomed Scotland players BT National 1 BT West 3 increased investment. on Royal Bank RugbyForce Weekend. ” Watsonians Millbrae Nick Rennie | Head of Club Services Former Scotland and Glasgow BT National 2 BT West 4 with communities, marketing and digital A new brand of simple, mixed, social Warriors captain will tools and volunteer recruitment. Scottish rugby to get more people playing and support Annan as an honorary board Police Scotland Hamilton Rugby departments and commercial provide a summer activity for clubs to member next season as part of a new Glasgow RugbyForce initiative. partners also shared information. generate income has been trialled this BT National 3 BT Res Nat 1 season. After overwhelmingly positive Clubs also received advice on GHK Melrose Storm feedback, Tartan Touch will launch Club game In regional rugby, Highland were developing a winning culture from as another option for people to get undefeated in BT Caledonia 1 - BT Cal 1 BT Res Nat 2 former Glasgow Warriors captain Alastair Heriot’s kicked off the season with involved in rugby from next spring. winning 17 and drawing one - while a win over Boroughmuir to claim Highland Currie 2 Kellock and the importance of player also reaching the final of the BT Shield. welfare from Chief Medical Officer the Charity Shield. They went on to Carrick conquered them to claim the BT Cal 2 Mid BT Res East 1 student claim the BT Cup following a victory Dr James Robson. BT Shield. 14 competitions over Melrose in final and defeated Alloa Boroughmuir 3 A new Director of Rugby course was held in 5 venues across Scotland Ayr to be crowned BT Premiership St Boswells and Glasgow Accies BT Cal 2 North BT Res East 2 established to develop and support a champions. both lost just one league match to generation of dynamic and inspirational be crowned BT East 1 and BT West 1 Deeside Watsonian 3 part-time Student Watsonians will join the BT Premiership leaders for the game. It is primarily aimed champions, respectively. Rugby Coordinators next season after winning 17 out of 22 BT Cal 3 Mid BT Res West 1 at those leading rugby programmes 6 BT National 1 matches. Annan were undefeated on the road in Scotland’s top clubs, and will be to their BT West 2 title and were also Crieff & Strathearn West of Scotland 2 delivered again next season. The two- Hamilton pipped Falkirk to the BT crowned Club of the Season. BT Cal 4 Mid BT Res West 2A day course aims to develop leadership, National 2 title, while GHK won BT National 3 losing just two games all A last minute penalty kick secured BT Greenock management and topical themes; all set 13% Stirling County 3 Bowl glory for Millbrae, who also won Wanderers 2 firmly in an applied rugby context. season. GHK also reached the BT Cup the BT West 3 League, and Police Growth in quarter-finals defeating BT Premiership BT Cal 3 North BT Res West 2B In today’s busy world enlisting volunteers side Selkirk in the third round. Scotland Glasgow were undefeated in Heriot’s win the BT Premiership Cup can be a challenge. To address this, Student Rugby BT West 4. Highland 2 West of Scotland 2A

24 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 25 Women & Girls

Women’s rugby is one of the fastest growing sports in the world and has the potential * Club Champions to be one of the top team sports for females in Scotland. 192 Sarah Beaney Cup Women’s & Murrayfield Wanderers Girls’ Teams Scottish Rugby is committed to growing The hub clubs, which will receive intense BT Women’s Plate the grassroots game and improving the support from Scottish Rugby, and their Watsonians standard of women’s rugby at all levels. satellite clubs will help bridge the gap BT Women’s Bowl between schools, clubs, colleges and The foundations for future success at all Glasgow University universities to establish local pathways 21% levels of the game have been laid this 14 and partnerships. BT Women’s Premier League season. A national strategic plan is in * NEW Murrayfield Wanderers place and new structures to take the We’ve identified under-12 girls’ rugby 150 BT Women’s National Division 1 women’s and girls’ game to the next as one of the biggest potential growth Girls’ Teams U12 Ayr Women level are being implemented. areas. We are encouraging clubs and teams schools to establish teams to provide BT Women’s Ultimately, we want more women and this another option alongside mixed rugby Garioch Women girls playing rugby to a higher standard season to retain girls and recruit new players. so we have a thriving game and National 7s To provide a focus for these emerging 26% winning teams. Hillhead / Jordanhill teams, there will be national under-12 *compared to 2014/15 Queen of the 10s We also need to create role models to girls’ festivals next season. inspire our next generation of players, Cartha Queens Park Our rugby community is growing across coaches, medics, referees, volunteers women all ages and new teams are not only Girls Champions and leaders in the game as you can’t attended competing with established sides but 21 Girls Under 18 Cup be what you can’t see. winning competitions and silverware. Get Started Coaching course Hillhead / Jordanhill Having 16 young women in the first year Howe of Fife and Greenock enjoyed Girls Under 18 Shield cohort of players in the BT Sport Scottish women successful maiden seasons in BT Women’s Rugby Academy made a noticeable 25 attended Community School of Auchterarder National Division 2. Howe reached the impact on Scotland Women as these Level 1 Refereeing Course Rhona Lloyd Girls Under 18 Bowl BT Women’s Bowl final and Greenock players were fitter, faster, stronger and Biggar RFC finished second to earn promotion. helped lift the team’s performances U18 National 7s during the Six Nations in Shade Munro’s Three seasons after forming, Ayr has risen Stirling County RFC first season as Head Coach. to BT Women’s Premier League where Girls Under 15 Cup Biggar RFC We want to make sure every woman and girl in “ Girls Under 15 Shield Scotland has the opportunity to be involved in rugby Caithness / Orkney from the pitch to the board room. ” Girls Under 15 Bowl Sheila Begbie MBE | Head of Women’s & Girls’ Rugby Annan RFC

they will compete against the country’s U15 National 7s We are delighted Jade Konkel is our first best, including Murrayfield Wanderers Cartha Queens park full-time female player and look forward to who collected the Sarah Beaney Cup creating opportunities for more talented and the BT Women’s Premier League players to follow in her footsteps. New competitions next season: title this season. This competition will • BT Women’s North League Our three full-time women and girls’ increase from six to eight teams next Development Officers are engaging with season and a new BT Women’s North • Premier Development Cup clubs to create a better environment League will be introduced. • Girls’ Club Cup for women and girls. This includes a new We are also introducing a new • Girls’ Schools Cup hub club structure to ensure women and President’s Girls’ Conference to provide • President’s Conference Girls girls can be involved in rugby no matter Murrayfield Wanderers win the meaningful regular competition for the where they live in Scotland. • Gradual integration into boys’ Sarah Beaney Cup top girls’ clubs across the country. Angus Girls schools’ conference structure

26 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 27 Schools & Youth

It has been a year of change for schools and youth rugby in Scotland as the new Club Youth Schools Cup Winners conference structure was rolled out across the country. Conference Winners 12,843 Under 18 Cup PRIMARY SCHOOL 5,211 President’s Conference George Watson’s College The 34 conferences provided more young Club conference under-18 matches CLUB 34,481 Stirling County Under 18 Shield players with regular and appropriate were played on Saturdays with all other Rugby Sessions Border Conference matches to equip them with the relevant age groups on Sundays. delivered by Under 18 Plate skills and attributes to ensure they stay in Development Clubs competed against each other Red Conference North Berwick High School the game into their adult years. Officers across five age groups on the same Deeside/Wanderers Under 16 Cup Over 10,000 players were involved in the day/weekend and were awarded 16,247 Green Conference George Watson’s College & Strathallan School autumn-term conferences, grouped by points depending on the aggregate SECONDARY SCHOOL Biggar Under 16 Shield ability as well as geography, which saw number of points awarded across all the Brown Conference Merchiston Castle School a dramatic increase in fixture fulfilment. age-group matches. East Kilbride Under 16 Plate Street Rugby The conference has certainly enthused and engaged boys, Kelso High School “ 450 Sessions School Conference parents and staff in all the ways that we had hoped. winners Youth Cup Winners ” young people completed Robert Gordon’s College 864 Youth Coaching Course Red Conference Under 18 Cup Merchiston Castle School Stirling County For schools and clubs with five or more As well as the whole club conferences, Development Officer teams playing regularly, 11 conferences there were also league tables generated 81 partnerships funded Blue Conference Under 18 Bowl were established featuring 24 state schools, for under-18, under-16 and S3 (under-15) Fettes College Orkney/Caithness 23 independent schools and 40 clubs. levels within each conference. CashBack Schools White Conference Under 16 Cup of Rugby For schools and clubs with fewer Although implementing the conference 30 George Heriot’s School & Glasgow Academy Ayr than five teams playing regularly, 23 structure was a priority for the majority of Green Conference Under 16 Bowl conferences were established, featuring the season the Schools and Youth team over George Watson’s College (B) Edinburgh BATs 54 clubs, 97 state schools and three also continued to work with partners in £750k of investment Purple Conference independent schools. clubs and local authorities to continue supported by extending the reach of the game Trinity Academy School conference games were played CashBack for through our CashBack for Communities Black Conference on a Saturday, or midweek as arranged Communities funded programmes in clubs and schools by the schools. St Columba’s School across the country.

Conference Rugby Year One by Numbers Rugby on the rise in Carrick Ten years ago, little rugby was played at delivered in the school through a mixture Carrick Academy and Carrick RFC was of curricula and extra curricula activity. clubs on the verge of folding. 34 conferences 94 A full-time Development Officer, also a Both are now thriving thanks to the former Carrick pupil, led the School of CashBack Schools of Rugby programme Rugby this year and helped them win Independent and solid partnerships with South Ayrshire the ScottishPower Glasgow Warriors Over700 teams 26 Schools Council and Scottish Rugby with 40% of Championship and the Ayrshire girls’ the 241 pupils playing rugby, including U15 competition. 50 girls. On top of this, Carrick Rugby won the BT State Carrick Academy fielded seven teams Shield, with most of the starting XV being Over10,000 players 121 Schools every Saturday in the Black Conference former pupils of Carrick Academy and as well as P6 and P7 sides. products of the Cashback School of Rugby programme. Each week there are 20 periods of rugby and strength and conditioning sessions Ayr’s Mitchell Wyllie 1,894 conference games played

28 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 29 Coaching Pathways

Scottish Rugby has continued to increase the quality of coaches across all levels of the game through our tailored training programmes and resources.

We support everyone who wants to New courses & workshops be involved in coaching, which is central to developing, sustaining and coaches attended increasing participation in rugby as well 484 StartRugby as improving performance levels. BT Prem & BT Nat 1 A range of courses, workshops and 16 coaches attended resources are available to new and Director of Rugby experienced coaches, from UKCC Level 1 coaching children to the schools and clubs UKCC Level 4 course for performance 48 involved in Director of coaches. Scottish Rugby also offers Youth Rugby continuing professional development Calum Forrester opportunities with our series of coaches attended ‘ready’ themed workshops, including 10 World Rugby S&C UKCC level 4 Youth Coach DefenceReady, ScrumReady and Level 2 The new UKCC Level 4 course aims to of the Season AttackReady for youth and adult rugby. coaches involved in * develop visionary, outstanding and Gary Coupland of Annan was Several new courses and workshops 8 UKCC Level 4 knowledgeable decision makers, who 70% honoured at this season’s Scottish have been delivered this season to can advance their own and others’ Rugby Club Awards Dinner for his further develop and raise the standards Coaching Secondary School Rugby learning and make an impact on continued development of youth 433 coaches completed of coaching and player welfare across Pilot workshops have been delivered performance to maintain momentum rugby at the club. to 44 teachers from three school and progression towards their goals. UKCC Level 2 all levels. He also received the sportscotland clusters in Caledonia. Following its A significant achievement this season The first cohort of eight coaches is half young person’s coach of the year success, the course will be rolled out was the roll out of a new online Training way through the qualification, which award and was named children’s across the country next season. coach of the year at the UK Hub, developed in partnership with Hive, is being delivered at Edinburgh Napier Coaching Awards. University’s Sighthill Campus, the home of the BT Sport Scottish Rugby Academy, * Gary’s work with local primary Creating more opportunities for new and experienced Edinburgh. schools has seen the mini section at “ 86% Annan treble in size over the past coaches not only improves the quality of coaches in They are also working towards a two years with over 70 boys and girls postgraduate diploma in Sports now participating in weekly training Scotland, it also lifts performance across all levels. 216 coaches completed ” Performance Enhancement in sessions at the club. The club is one Neil Graham | Coach Development Manager World Rugby conjunction with the UKCC qualification of two in Scotland with girls’ teams at and are set to graduate in May. S&C Level 1 under-12, under-15, under-18 and a women’s team. for coaches in Scotland. It provides Kenny Murray | Glasgow Warriors Annan’s annual primary schools touch coaches and match officials with Stevie Scott | Edinburgh Rugby tournament, in partnership with Active an interactive platform to view and Calum Forrester | Ayr RFC Schools, was set up by Gary with over engage with coach development, and Scotland U19 * 150 children taking part. strength and conditioning and match BETTER COACHES Phil Smith | Heriot’s RFC and Scotland Club XV official resources. 40% people completed the RugbyRight online course The coaching resources and BETTER PLAYERS Stevie Lawrie | Heriot’s RFC “ The Training Hub was launched at the workshops, which Scottish Rugby and Scotland U16 184 coaches attended annual National Coaching Conference provide, have helped me to deliver a Ben Fisher | BT Sport Scottish Rugby National Coaching high-level of coaching across Annan. at BT Murrayfield, where over 150 BETTER Academy and Scotland U20 They have encouraged me to coaches from over 110 schools and Conference John Dalziel | Melrose RFC continue to develop coaching ideas clubs learned from Scotland’s top and Scotland U20 for children. Gary Coupland professional coaches in May. GAME! *compared to 2014/15 ” John Dalziel Andrew Hall | Hong Kong 4880

30 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 31 Referees

Improving the quality and quantity of active match officials is essential to the Referee Society The man in the middle development of the game at all levels. Qualified Officials Duncan McClement was named Aberdeen 86 Referee of the Season at Scottish While volunteers picked up the whistle and Heriot’s at Millbrae. Neil Paterson Rugby’s Club Awards for his contribution across Scotland every week to referee refereed BT Premiership fixtures. Borders 166 as a volunteer referee. grassroots games, our elite referees Balancing his work as a junior doctor, Edinburgh 439 He switched to refereeing nine years have been honing their skills as Scottish Keith Allen took charge of some top ago under West Rugby Referees’ Rugby continues to work towards Highlands 116 of the table clashes in RFU National Society to stay involved in the gaining a place on the World 1 and several fixtures in France. Midlands 306 game. Since then, the 39-year-old International Panel. Commander, who is based at the HM Scottish Rugby has resources and The referees on our Elite Referee Panel West 742 Naval Base in Clyde, has progressed up courses available to anyone interested have officiated international, European, the ranks in the domestic game and in refereeing. Guinness PRO12 and BT Premiership gained European and international fixtures this season with Mike Adamson Rugby would not be possible without experience, including refereeing the continuing to perform well on the sevens the dedication of volunteers, including TOTAL 1,855 British Army and the Fiji Military Forces world stage to earn Olympic selection, match officials, and we are grateful for match this season. alongside Alex Pratt. your support.

Lloyd Linton has been a regular referee of Guinness PRO12 and European Scottish Rugby Elite Referee courses completed by people in 2015/16 Referee Panel Rugby Challenge Cup fixtures. He 6 Level 1 Level 2 Level 3 Assistant Referee also officiated in the European Rugby Scottish Rugby Champions Cup, U20 Six Nations and National the , South Africa’s premier 20 599 29 11 37 Referee Panel domestic competition. Contenders (nominated Graeme Wells and Sam Grove-White for National Panel) officiated international Rugby Europe 11 Road to Rio matches. Wells has also been involved Academy (young Mike Adamson and Alex Pratt refereed Twice capped for Scotland in three European Qualifier fixtures and 15 referees with potential at this summer’s Olympic Games, where Women, Pratt began her the BT Premiership final between Ayr to progress quickly) rugby sevens was played for the first refereeing journey eight years time in 92 years. ago while playing for Watsonians. For the love of rugby Adamson made the transition from player to referee three years She’s on Scottish Rugby’s Murrayfield Wanderers and former ago through Scottish Rugby’s high National Referee Panel and Scotland Women under-20 player Hollie performance programme following was assistant referee in the Davidson took up refereeing last year. 30 caps for Scotland 7s and 2014 Women’s Rugby World representing Scotland at the 2010 Cup final in France. She completed the Level 2 course this Commonwealth Games. season while also refereeing girls’ cup competitions and women’s sevens. The 23-year-old stand-off has her sights “ Being part of the biggest “ The Olympics is the greatest sporting event in on reaching the top echelons of the sporting event in the world was the world and to be a part of it was incredible. game while also developing women’s a dream come true. This was not The inclusion of rugby sevens for the first time refereeing in Scotland. an individual achievement, there at an Olympic Games was amazing for World are so many people from Scottish Rugby and being appointed to referee the first I love every aspect of the game whether that’s “ rugby, family and friends that ever match in the men’s competition was an playing or with a whistle in my hand. I’m enjoying made this dream a reality and I honour and privilege. It was a proud moment both at the moment, but my dream is to referee on the want to thank them all. Alex Pratt for myself and Scottish Rugby. Mike Adamson Alex Gordon Smith Sevens World Series. ” Hollie Davidson ” ”

32 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 33 Dominic McKay Chief Operating Officer’s Report

I’m delighted with the progress our team has made growing the revenue and the profile of our organisation in the last 12 months.

Turnover is at a record £47.4 million following growth in our core income Scotland, Glasgow Edinburgh Guinness strands – ticketing, broadcast and Scotland U20 & Scotland Women Warriors Rugby PRO12 Final sponsorship – which has contributed 180,819 99,100 74,390 34,550 to an increased investment in rugby across Scotland. Relationships with current partners were The marketing campaign was integrated Income generated from ticket sales is reinforced with Tennent Caledonian into thescotlandteam.com, the new higher than the previous comparable Breweries, Macron, AG Barr, Dove Men online home for our national side which season as capacity crowds at BT + Care and Vitality all renewing for up to clocked over one million page views. Scotland Murrayfield and Scotstoun were five years. Glasgow Warriors and Edinburgh Rugby Season Pass achieved through innovative continued to grow commercially with TICKETING BT continued to be integral to growing the marketing campaigns. both clubs rolling out exciting initiatives In its fourth year, the popularity £7M game and were a key sponsor, alongside and signing new sponsorship deals of the Scotland Season Pass A record summer Test crowd watched Caledonia Best and AG Barr, in making throughout the season. continued to grow with a 36% Scotland beat Italy at the national Scotland House in Newcastle such a increase compared to the stadium – more than double the number Income BROADCAST OTHER success during the Rugby World Cup. The year ahead promises to be an previous season. at the corresponding fixture in 2011. £47.4M exciting and challenging one as we £10.9M £29.5M We supported over 200 clubs to look to further grow our off-field activities Edinburgh Rugby’s 1872 Scottish Cup capitalise on the surge of interest during 2015/16 to continue to strengthen Scottish Rugby home victory over Glasgow Warriors the RWC and the RBS 6 Nations through 2014/15 at all levels. 13,919 was witnessed by over 23,000 fans – Everyone’s Game, which encouraged 10,211 50% more than the previous year and people to get involved in their local a record attendance for a Scottish rugby club. Guinness PRO12 fixture. Ticketing Income Our stadium and facilities team Our ability to host dozens of matches “ Our results off the pitch have exceeded our expectations and I am thrilled with what continue to deliver a world class this season on our estate and external we have achieved this season thanks to commitment and innovation. The support environment to support our national venues, as well as high-profile concerts from our growing family of partners is fantastic and record numbers buying tickets to and pro squads as well as our four and events is testament to the hard regional BT Sport Academies. Two work of the facilities and events teams. games means more investment in rugby across Scotland, which can only be a good years after the international pitch was

thing for our sport. I am very proud to lead such a talented and dedicated team. ” completely overhauled, our grounds We were thrilled to bring the Foo Dominic McKay | Chief Operating Officer team and Head Groundsman, Jim Fighter’s to our capital city where Dawson, collected national Institute of Scotland’s RBS 6 Nations games Fan engagement on social media has Groundsmanship awards. 22% on last RWC season against England and France were sold also swelled with over 648,000 followers 36,000 - 2011/12 out in record-breaking time through across all platforms and our direct to st fans rocked out strategic and direct communications inbox ezines have been a success with 1 with our fans. sign up rates constantly rising. – one of nearly 70 events Commercial Income hosted by Scottish Rugby We also delivered the first Guinness Strengthening and broadening our across the season. PRO12 Final outside of Ireland with a commercial partners has resulted in an record crowd of 34,550 – twice the 8% year-on-year increase taking our Scottish Rugby also unveiled a new number at last season’s final in Belfast. commercial income to a record level. project to develop a hotel on land near We’re delighted to be working closely News Scotland, Crabbies and Eden the entrance of BT with EPCR to host the Champions and Mill Gin joined our commercial family as we continue to look at different ways Challenge cup finals over one weekend and the Scotland Business Club was of generating income to supplement next season on 12 & 13 May. Jim Dawson launched to inspire businesses beyond our current revenue sources. 8% the 80 minutes. year on year increase

34 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 35 Digital

unique website visitors scottishrugby.org 1.5m @scotlandteam thescotlandteam.com* 240k glasgowwarriors.org 458k #AsOne edinburghrugby.org 274k

Scottish Rugby 230,282 Scottish Rugby 45,100 Glasgow Warriors 44,287 Glasgow Warriors 22,300 Edinburgh Rugby 33,758 Edinburgh Rugby 8,100 +182% followers +644% followers Fans at Scotland House, Newcastle Rugby World Cup 2015 EVERYONE’S

Sold record volumes of Scotland’s Play Scottish Rugby 192,063 Scottish Rugby 718,266 Volunteer tartan inspired RWC jerseys Coach Referee GAME Glasgow Warriors 43,251 Glasgow Warriors 117,558 Your local club needs you! 1500 fans Edinburgh Rugby 23,622 Edinburgh Rugby 79,951 watched Scotland train at +116% likes +17% views BT Murrayfield in the new kit clubs supported 150 during RWC sponsors and fans 1200 Scottish Rugby Scotland Women filled Scotland House in Newcastle for Lismore more than doubled Sean Lamont meets young fans total Facebook reach South Africa and Samoa games average bar income when 43.4 & U20 double-header: for the year: MILLION >50k YouTube views in 164 countries showing RWC games

Falkirk doubled number Scottish Rugby Quarter final v Australia of boys and girls in every Facebook watched by 1.1million | 1 in 5 of Scottish population age group of minis Scotland are through to the#RWC2015quarter RWC 2015 TV audience reach grew in primary finals after beating Samoa 36-33! Captain Greig 32% Scotland by 32% compared to 2011 700 schools Laidlaw clocked up 26 points, including a try. received RWC-themed workbooks Rock solid John Hardie named man of the watched fans linked to the Curriculum of Excellence match. Richie Gray won his 50th and Sean 3.3M Scotland 20M watched Lamont played his 100th! What a match! on TV during RWC Japan v Scotland clubs supported Thank you for all your support #AsOne around the world 63 during RBS 6 Nations 987k people reached

*thescotlandteam.com is a mobile optimised site developed for Scotland fans this season.

36 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 37 Connecting with partners Looking After Our People

Competent, motivated staff and strong leadership will First Minister Nicola Sturgeon visited the Obituaries Scotland squad before they departed ensure Scottish Rugby successfully performs in an ever- for Rugby World Cup 2015; she changing environment. Supporting and developing our Scottish Rugby is saddened to record the passing of some attended the quarter-final v Australia; greatest asset, our people, are the focus of our four key notable rugby talent in the past and hosted a reception at her official employee programmes. year. Our condolences go to all resident, Bute House, to thank them for from the rugby family who lost their efforts in the tournament. loved ones this season.

Arthur Fairgrieve Dorward (Gala, Cambridge University, South, Barbarians and Scotland), 15 Scotland caps in 1950-57. Died August 2015, aged 90.

Scottish Rugby is proud of its rich Bob Taylor The world’s oldest varsity match enjoyed heritage and the role played in giving (Kelvinside West, Glasgow and a successful home-coming when 10,000 the game of rugby to the world. Scotland), people watched the universities of 4 Scotland caps in 1951. Died 27 Edinburgh and St Andrews play at BT As part of our commitment to our September 2015, aged 91. Murrayfield, after recent contests had history, the BT Murrayfield Stadium Jim “Basher” Inglis been staged at London Scottish in Tours were revamped featuring new (Selkirk, South, Scotland), Richmond. St Andrews won 27 – 26. interactive elements and extensive 1 Scotland cap in 1952. items of Bill McLaren’s personal The 2015 RBS Scottish Varsity matches Died 18 November, 2015, aged 87. memorabilia with more items from our also saw female students play on the archive to be displayed. John (Jock) Alexander Davidson international pitch, which The University (London Scottish, Edinburgh of Edinburgh won 36 – 7. Wanderers, Racing Club, Scotland), Driving Culture Employee Engagement 3 Scotland caps in 1959-60. A positive, aligned culture guides An environment where employees Died 22 January, 2016, aged 83. Scottish Rugby worked with the Scottish We supported the re-christening behaviour and decision making in a are enthusiastic about their role in Government, EventScotland and the of our own official charity, the Alastair Gourlay Biggar changing environment. supporting Scottish Rugby. (London Scottish, Scotland, British City of Edinburgh Council to bring Murrayfield Injured Players’ • The Healthy Workplaces Group was • Regular consultation with employees Lions), the 2016 Guinness PRO12 Final to BT Foundation and continued to established this season to encourage via new HR system 12 Scotland caps in 1969-72. Died 6 Murrayfield. provide support to our other official staff to be more active and February, 2016, aged 69. charity partners. • Quarterly CEO staff briefings We’re collaborating again to bring healthy, with representatives from • New weekly staff newsletter to Colin High the 2017 EPCR Champions Cup and all departments making a positive Scottish Rugby high performance improve internal communication & Challenge Cup Finals to impact on culture and colleagues. referee coach and former engagement BT Murrayfield next May. international referee, controlled three Learning and Development international matches in 1987-90. Create a sustainable organisation while Died 13 April, 2016, aged 74. growing our business. Health & Safety Gordon Strachan • Launched bespoke Target • 100 staff had the flu vaccine (Jordanhill, Glasgow and Scotland), Scottish Rugby provided kit and Outstanding Performance • 5 defibrillators at BT Murrayfield 5 Scotland caps in 1971-73. supported TRI The Clan in the Mixed management programme Died May, 2016, aged 68. Ability World Rugby Tournament • 12 staff trained in first aid MURRAYFIELD • Customer First training delivered / Craig McGeary in Bradford, where they were Injured Players’ • The Scottish Ambulance Service Training facilitated for specific roles (Haddington RFC) undefeated. Hearts & Balls Foundation has engaged with the Royal and departments Scotland and Edinburgh Rugby HELPING RUGBY HELP ITS OWN Infirmary of Edinburgh to provide Unified rugby involves people with Video Analyst in 2005-07. Reward, Recognition & Performance enhanced paramedic cover at learning difficulties play alongside Scottish Rugby also supported Died 5 July, 2016, aged 43. Develop a framework to ensure our capacity BT Murrayfield matches those who are not similarly challenged. more than 200 requests for charity employees can contribute towards John Jackson ‘Jack’ Hegarty assistance from member clubs, rugby • Match-day security reviewed with (Hawick) success at Scottish Rugby. In addition, support from Police Scotland; playing schools and the wider Scottish 6 Scotland caps in 1951-55. attract, retain, train and develop talent. bags now searched community. Died 16 July 2016, aged 91.

38 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 39 Moving Scottish Rugby Forward

Scottish Rugby needs to be dynamic and progressive to ensure rugby thrives across The economic challenges we face as a out to, the plan provided a shared The key strategic themes for the next Scotland at school, youth, club and professional level for both men and women. governing body are constantly evolving. sense of direction and empowered our four years remain similar and a balance While we are increasing our revenue professional and local rugby clubs to of realism and ambition has been struck The Journey to 2016 and reducing debt, more needs to assist in the success of Scottish Rugby. to progress existing initiatives. be invested into the domestic and Our new set of strategic aims builds on Remaining agile in a constantly shifting Strategic Aim Objective Starting point 2012 Outcome professional game to keep up with other what we have achieved so far and landscape will enable our strategic aims Failed to reach 2011 rugby nations. Winning Teams Win RWC 2015 Losing quarter-finalist continues to focus our efforts on what is to be assessed and updated where quarter-final Scotland In 2012, we published a strategic plan best for rugby in Scotland. necessary. Top six in World Rugby rankings Ranking 10th Best Ranking 8th to inspire Scotland through rugby. It Over the past four years we have Win RBS 6 Nations by 2016 6th place Best finish 3rd, 2016: 4th was ambitious, but needed to be in increased our commercial revenue, Edinburgh Consistently reach 11th in PRO12 Best finish 8th order to push the boundaries and Guinness PRO12 play-offs improved our customer experience Rugby make an impact. Our journey to 2016 and increased international match 2nd stage of Euro Challenge Cup European semi-final Challenge Cup finalist was not without challenges and while attendance. Glasgow Consistently reach 4th in PRO12 Play-offs each year and 2014/15 winners we didn’t achieve everything we set Warriors Guinness PRO12 play-offs Never reached 2nd stage of Euro Champions Cup Didn’t reach play-off stage play-off stage The Journey to 2019/20 Elite Referees No World Rugby No World Rugby panel referee No World Rugby panel referee Strategic Aim Objective Measure panel referee Winning Teams Consistent improvement - win the RBS 6 Nations Premier Clubs One team in semi-finals of No clubs in later Tournament results Withdrawn from competition Championship at least once by 2019/20 British & Irish Cup stages Scotland Scotland 7s Consistently make top 8 World Best 10th Ranking 10th 2019 Rugby World Cup semi-finals Tournament results Rugby ranking Won first HSBC World Rugby Sevens Series Cup

Medal at CG 2014 No medal. Losing semi-finalist Consistent improvement in World Rugby ranking – overall Results/rankings Thriving Club Total teams 2,755 1,960 2,494 average of at least 8th to 2019/20 Game Total players 63,660 46,070 48,654* Edinburgh Rugby One team in top four of Guinness PRO12 and other team & Glasgow Tournament results Qualified coaches 2,658 1,891 3,834 in top six every year Warriors Match officials 3,372 2,396 2,572 Both teams in top four of Guinness PRO12 by end of Tournament results Increasing Edinburgh Rugby average 10,000 5,234 5,724 ( + 9.3%) 2019/20 Match Glasgow Warriors average 10,000 2,396 6,806 (+184%) Scotland Consistent improvement in results & World Rugby ranking Attendance Women Results and ranking International Cat A games 67,000 Achieve top 10 ranking by 2019/20 67,000 Main Tier 1 : 67,000 (6 Nations excluding Italy) Revenue & International Cat B games 60,000 NZ 66,000, Australia 56,700, South Africa Autumn Consistent generation of annual surplus 30,000 Asset Growth/ Annual results, debt level (Italy, Autumn Tests Tier 1) Tests 49,200, Italy 6 Nations 62,100 Sustainability Repay minimum of £500k of core debt per year International Cat C games 40,000 20,000 Argentina 36,700 Developing Continued delivery of the BT Sport Scottish Rugby Operational reports and output for pro and International Cat D games 21,000 20,000 Tonga 16,000 (Rugby Park), Japan 32,700 Talent Academy national teams Increasing Repay minimum of £500k of core Average debt Coaching pathway Average debt for 2015/16 £8.5m Elite coaching numbers Commercial debt per year £12.9m Options for coach succession Revenue Commercial income to have more Underdeveloped Other commercial income over £10m in 2015/16 Refereeing – regular selections in elite tournaments / than doubled to over £10m family of sponsors Referees selected for Guinness PRO12, EPCR, 6N, three individuals by end of 2017/18 RWC Busy conferencing & hospitality business. Concerts, BT Murrayfield used regularly for Limited use of CG 2014 support venue, Guinness PRO12 Final, Growing the major events & concerts BT Murrayfield Champions & Challenge Cup finals, Kiltwalk Domestic Continued delivery of schools & youth programme Targets per published paper (Autumn 2015) Game Improving Limited customer Regular targeted communications Facebook, Twitter, website, ezines, SRTV Deliver women’s and girls’ programme Growth in player numbers / teams the Customer research / fixtures played Experience Matchday entertainment zones, varied catering Number of semi-pro players Improved matchday experience offer, improved attendances, car parking on Consistent improvement in results and ranking at BT Murrayfield Underused stadium back pitches, better ticketing provision, season Increased match attendances tickets, direct debit payment option, auto renewal service, secondary ticketing sales facility Sustainable Continued delivery of domestic sustainability Club diagnostics Clubs programmes *Player numbers were extracted from the Scottish Rugby player registration database, which is updated by schools and clubs at the end of each season. Data management system reports

40 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 41 Strategic Report

The Directors present their Strategic Report for the year ended 31 May 2016. UK Financial Reporting Framework

As a result of a change in the accounting reporting framework in the UK, FRS 102 -The Financial Reporting Standard applicable in the UK and Republic of Ireland replaces all the UK Financial Principal Activities Reporting Standards and UITF Abstracts in issue prior to the new UK financial reporting regime. The new standard is effective for The principal activity of the is to promote all accounting periods beginning on after 1 January 2015 and, the game of Rugby throughout Scotland, using its wholly therefore, this is the first year for which the Union has prepared owned subsidiary Scottish Rugby Union plc for all trading accounts under FRS 102. activities. The standard requires amendments to a number of items within the Union’s financial statements and also requires a prior Business Review year comparative position under the new reporting standard The Union continues to work towards the objectives outlined to be presented, together with a reconciliation of the effects in its Policy Initiatives, specifically in the areas of academies, of the changes that the new reporting standard requires. coaching, the women’s game, schools, clubs, and refereeing. This reconciliation is noted in detail in Note 22 to the financial The implementation of these initiatives has continued in the statements on pages 72 to 74. course of the year. Further detail is also outlined in the various sections of the Annual Report. Robert Howat Financial Risk Management The Union has achieved a £0.8m surplus for the year (2015: increases in the two prior periods. The increase of £0.1m in surplus of £24k). Turnover was £3.2m higher than in the year The risk management framework of the Union is well depreciation is as a result of current and prior year ended 31 May 2015, with additional income from a number established with the ongoing identification, evaluation asset additions. of sponsorship agreements including BT, grant income from and status of business risks being presented to the Audit World Rugby, additional pro team income, both through Average bank borrowings over the year amounted to £8.5m, Committee, Scottish Rugby Board and Council, periodically. Guinness PRO12 and also from locally generated Glasgow which is £0.1m below the prior year, generally as a result of Warriors income following the Guinness PRO12 Final win in typical cash flows during a Rugby World Cup year. Bank 2015, enhanced RBS 6 Nations broadcasting revenues from borrowings at 31 May 2016 of £5.6m were £2.5m below the Financial Instruments BBC and ITV, and a more favourable euro rate. These offset previous year level, principally as a result of working capital lower ticket revenues from two home RBS 6 Nations matches movements just prior to the year end, in particular receipts The Union uses interest rate swaps to reduce its exposure compared with three in the prior year, and lower ticket and from Scotland Season Tickets Sales for 2016/17. Interest to interest rate movements. Details of this are noted in broadcasting revenues from one August Test as against three charges fell to £0.4m, compared with £0.6m in the year to 31 the Accounting Policies and in Note 10 to the financial November Tests in the prior year, as a result of the Rugby May 2015, principally as a result of the new financing deal statements. The Union also uses forward sale currency World Cup. Other income, which includes sponsorship & agreed with Bank of Scotland, and a continuation of the contracts to reduce its exposure to exchange rate advertising, pro team income, hospitality income, grants, reduction in overall debt balance. movements. Details of this are noted in the Accounting Policies and in Note 10 to the financial statements. Financial and miscellaneous incomes has increased primarily from the The Directors continue to monitor borrowing levels, income instruments are not used for speculative purposes. sponsorship, pro team income and grants income position and expenditure against budget on a monthly basis. They

noted above. also monitor other key business issues including Professional By order of the Board Within the expenditure categories, the increase in and National Team performance which are fundamental International and Professional Rugby of £1.2m is mainly due to to the Union’s strategy of growing the game within a stable Robert M Howat commercial environment. the costs of preparation for, and participation in, the Rugby Secretary World Cup. Domestic and Performance rugby investment has On pages 56 to 74, the Directors present their report and Edinburgh, 21 July 2016 increased as a full year of the revised structure supporting the audited consolidated financial statements for the year domestic game and also the BT Sport Academy is included, ended 31 May 2016. The financial statements comprise the compared with a part year of implementation in 2014/15. consolidated financial statements of the Union and Commercial and Operational Costs are £0.3m lower due to its subsidiary. there being less home games in the current year, although the gross reduction is partly offset by Rugby World Cup related activity. Club Support & Development investment has increased by £165k with a full year of enhanced investment Huntly Girls being reflected in the numbers. This rise follows significant

42 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 43 Governance

Ian Barr - National Division 3 committee in many roles including Secretary and President. Ian has served as President of Lasswade for a number of years After retiring from playing, the lawyer refereed for seven and was instrumental in the setting up of the Midlothian Rugby years and served as Secretary of his local referees society. Development Group. He was a Council representative on He also serves as a Trustee on the Murrayfield Injured Players the Scottish Rugby Board from 2013-15. He also serves as the Foundation and is a member of the Scottish Rugby Board. Council Ambassador with the Scotland under-20 team. Fergus Neil - Scottish Rugby Referees Association Jim Littlefair - Edinburgh Regional League A referee for eight years before becoming a referee assessor, Jim played for Stewart’s Melville from 1972-84. He served the chartered accountant played for Whitecraigs where he has as President of North Berwick from 2009-12 and led a been a member since 1965. He is a World Rugby accredited major refurbishment of the club’s facilities. He is a Council Performance Reviewer. He chaired the 2007 SRU Match representative on the Scottish Rugby Board. Jim is also a Officials Restructure Group and was chair of the SRU Match Director of Hearts and Balls Charitable Trust and is a Trustee of Officials’ Selection Panel from its inception until his election to the Murrayfield Injured Players Foundation. the Council and is a member of the Scottish Rugby Board

Jim Stevenson - Glasgow North Regional League Bruce Thompson - Schools Division Jim played for , Cambuslang and Dalziel. He An Oxford graduate in classics, Bruce is Head Teacher of Scottish Rugby Council met 11 times during the financial year, including meeting represented Glasgow and District Union and Lanarkshire during Strathallan School and the Scottish representative on the immediately after the AGM to elect Council representatives a career spanning over thirty years. The retired Glasgow City Headmasters’ Conference Sports Committee. He chaired the At the AGM on 8 August 2015 Edward A Crozier succeeded to the Board, quarterly review meetings, two joint briefing Council officer was President of Cambuslang for many years HMC Committee that looked into rugby safety issues liaising Ian Rankin as President and Chair of Council and Rob sessions with the Board and additional briefing meetings. and served as Scottish Rugby President from 2008-10. Jim is a closely with Scottish Rugby. Flockhart was elected as Vice-President of the Union after Under the Bye-Laws the Council is charged, among other Trustee of the Murrayfield Injured Players Foundation. Dee Bradbury - Women’s Rugby Forum and Rugby Europe a contested election. Adam Gray joined the Council, things, with reviewing the operational activity delegated to Adam Gray - Glasgow South Regional League (part year) succeeding Bill McMurtrie as the representative of the Glasgow the Board, developing and fostering the game of rugby in After captaining Stewartry, the UKCC Level 3 accredited Dee joined Strathclyde Police in 1984 and was posted to Oban South Regional League. John Jeffrey continued to serve Scotland, reviewing and advising on matters of policy and coach helped the side to three promotions and was named where she remained until retiring. She represented Scotland throughout the year as one of Scottish Rugby’s representatives strategy and developing relationships within the game at both National League Coach of the Year in 2005. He coached and Great Britain in athletics and played representative at World Rugby and 6 Nations, with Edward A Crozier and domestic and international levels. before taking up rugby in 2011 while President of Oban Lorne Archie Ferguson serving for part of the year at Celtic Rugby age-grade rugby in Glasgow and was Assistant Coach with and Secretary of Argyll and Bute. Dee was appointed as one of and Rugby Europe respectively. They were succeeded by Ian Council members continued to participate in a number Scotland under-17. Adam was a Scottish Rugby Performance Scottish Rugby’s representatives on Rugby Europe in 2015. Rankin and Dee Bradbury as of January 2016. of working groups throughout the year including season Development Manager in Glasgow South from 2006-10 and structures, volunteering, communications and governance served on Scottish Rugby’s Referee Selection Panel from 2011- Rod Lynch - Exile Clubs The President chaired the Council throughout the year, with review and in a variety of ambassadorial capacities supporting 13. He is currently a member of the Referees Advisory Panel. Born in Perth, Rod was elected as the first Scottish Exile Clubs the Vice-President, acting as the Vice-Chair. The Council the various age grade and women’s national teams. Alan Brown - Regional League Representative on the Scottish Rugby Council prior to the A fellow of the Chartered Institute of Management 2012 AGM. He is the President and Chief Executive of London Patron Peter Laverie - Premier Division Accountants, Alan has worked in the social housing sector Scottish, having served on the club committee since 2000. Her Royal Highness, The Princess Royal Peter is a Senior Lecturer and Teaching Fellow at Glasgow for many years and is currently the Director of Finance and John Jeffrey - Co-opted member Clyde College and an associate member of staff at Dundee Corporate Services for the Eildon Housing Association Ltd. A (World Rugby & Six Nations)

President University. His rugby began at Old where he is keen club player, he is currently Treasurer of Gala Wanderers John won 40 caps for Scotland and was a member of the Edward A. Crozier now a coach of Glasgow Hawks. Peter has been involved in and Borders Semi-Junior League and serves as a Trustee on Grand Slam team of 1990. He was also a British Lion and (Celtic Rugby Limited – part year) coaching age-grade rugby at district and international level the Murrayfield Injured Players Foundation. continues to promote Scottish Rugby’s interests through Having served as Vice President in 2014/15, Edward and with Scotland Club XV. serving as a co-opted member of the Council by representing succeeded to the office of President of the SRU at the AGM Graham Kerr - Midlands Regional League Dr Doug Ward CBE - National Division 1 Scottish Rugby at World Rugby and on the Six Nations Council. in 2015. He previously served on the Scottish Rugby Council as Graham has been a member of Alloa as a player, coach, A member and past President of Biggar, Doug is the Chairman the Glasgow North regional representative. Secretary and Vice President. He was employed as Caledonia Ian Rankin - Co-opted member of Celtic Renewables Ltd and a Vice President of the Rugby Administration Executive between 1997 and 2006. (Celtic Rugby Limited- part year) Vice President European Biodiesel Board. He was appointed CBE in 2006 for Since 2006 he has served on the Caledonia Competitions Ian has served as President in 2014/15 and was appointed Rob Flockhart services to agriculture in Scotland and received an honorary Committee and is currently Caledonia Midlands Age Grade to the Celtic Rugby Board this season as a co-opted Scottish Rob was elected Vice President at the AGM in 2015. A retired doctorate in 2010 from Edinburgh Napier University. Convenor. He also chairs the National Youth Forum, serves Rugby Council member. The former captain of Edinburgh solicitor, he played for the High School of Dundee, Panmure, Graeme Scott - National Division 2 as the Council Ambassador with Scotland under-18 and is a Wanderers and Howe of Fife went on to coach both sides Edinburgh University, Melrose, Boroughmuir, Corstorphine and Graeme joined the Scottish Rugby Council following the Trustee on the Murrayfield Injured Players Foundation. and Kirkcaldy before taking charge of Caledonia Reds and gained representative honours with Edinburgh. He’s been a 20014 AGM. Prior to his appointment, he served as the Mike Monro - North Regional League Edinburgh Reivers. He also assisted with Scotland A and Team Manager for Scotland representative teams and was Championship Club Forum Secretary and he remains The Aberdeen Wanderers member has also been a member Scotland under-20 before holding the Director of Rugby a selector of the Scotland team. Rob is also an experienced Honorary Secretary of Whitecraigs. of Aberdeenshire since 1971, where he has served on the position at Dundee HSFP. international Citing Commissioner.

44 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 45 Colin Grassie - Independent Non-Executive Dominic McKay - Chief Operating Officer Appointed 1 July 2012 for 3 years. Appointed 22 June 2013. Re-appointed for a further 3 years with effect from 1 July 2015. Dominic joined Scottish Rugby in 2008 from his previous post The former CEO in the UK and member of the Group at drinks giant Pernod Ricard. He is now the Chief Operating Executive Committee of Deutsche Bank, Colin joined the Officer and is responsible for all group commercial, media, Scottish Rugby Board in July 2012. He chairs the Remuneration marketing, events, ticketing, stadium facilities and public Committee and is the Senior Independent Director. He is also affairs activity for Scottish Rugby. He also oversees the off-field on the Advisory Board of Winning Scotland, the chair of the activity of Glasgow Warriors and Edinburgh Rugby. Dominic is Development Trust of the Glasgow School of Art and sits on a Director of the Celtic League/Pro12 Board and a Director of the Board of Governors of Fettes College in Edinburgh. Rugby Europe.

Andrew Healy - Finance Director Mike Monro - Council nominated non-executive Appointed 22 August 2013. Appointed 1 October 2013. Re-appointed 16 August 2014 for 3 years. Joining Scottish Rugby in 2007 as Financial Controller, Andrew was appointed to the Board as Finance Director Mike has been a member of Aberdeenshire since 1971 and in 2013. A Chartered Accountant and born in Glasgow, he has served on the committee there in many roles, including Bye-Laws. On ceasing to be a member of Council, a Council Scottish Rugby Board played with GHA for a number of years, before retiring and secretary and president. After retiring from playing, the nominated non-executive Director is also required to step taking up refereeing for a further nine years. He played for lawyer refereed for seven years and served as secretary of his The Scottish Rugby Board is responsible for the ongoing down from the Board. management and operations of Scottish Rugby under powers Glasgow Schools, Glasgow under-18 and Glasgow under-21 local referees society. He is also a Trustee on the Murrayfield delegated to it under the Bye-Laws. Its members also serve As at the financial year end, the Directors of the Boards of and represents Scottish Rugby on a number of Finance Injured Players Foundation. Mike is a Council-nominated as the Board of Scottish Rugby Union plc, comprising four Scottish Rugby Union and Scottish Rugby Union plc and their Committees within international bodies. non-executive director and is a member of the Audit and terms of office were: Remuneration Committees. independent non-executive Directors, four non-executive Robert Howat - General Counsel & Company Secretary Directors nominated by the Scottish Rugby Council (one of Sir Moir Lockhead OBE - Independent non-executive, Appointed 15 July 2015. Fergus Neil - Council nominated non-executive the four being the President in his capacity as Chairman of Chairman Re-appointed 22 June 2013 for 3 years. Retires at 2016 AGM. Robert joined Scottish Rugby as General Counsel in January the Council), and four executive Directors. Colin Grassie is the Originally appointed 1 July 2011 for 3 years. Re-appointed for 2013 and oversees the Legal and Governance Department, A referee for eight years before becoming a referee assessor, Senior Independent Director. Robert Howat was appointed to a further 3 years with effect from 1 July 2014. Human Resources and Health & Safety functions. Robert the chartered accountant played for Whitecraigs where the Board in the course of the year. The Vice-President is also Originally a mechanical engineer, Sir Moir went on to be Chief became a Board Director in July 2015 and is also a Director of he has been a member since 1965. He is a World Rugby entitled to attend Board meetings as an observer but is not Executive of First Group plc. He was appointed Chairman of European Professional Club Rugby and a sits on its Regulations accredited Performance Reviewer and chaired the 2007 entitled to vote. the Scottish Rugby Board in July 2011. Awarded a knighthood Committee. Prior to taking on his role at Scottish Rugby Robert SRU Match Officials Restructure Group and the SRU Match Executive Directors serve under the terms of their employment for services to transport in 2008, following an OBE in 1996, he was Company Secretary at Celtic FC for 11 years. Officials’ Selection Panel. Fergus is one of the Council- or service contracts. The independent non-executive Directors was re-appointed to the Board for a further three years from nominated Directors and chairs the Audit Committee. Jim Littlefair - Council nominated non-executive are appointed for terms of 3 years and would normally be July 2014. He also chairs the Nomination Committee. Appointed with effect on 9 August 2015, for 3 years. Lesley Thomson QC - Independent Non-Executive expected to serve for a minimum of two terms. Appointment Edward A Crozier - Council nominated non-executive Appointed 1 October 2013 for 3 years. Re-appointed for a of the independent non-executive Directors is by the Board, Jim served as President of North Berwick from 2009-12 and led (President as Chair of Council) further 3 years with effect from 1 October 2016. on the recommendation of the Nomination Committee and a major refurbishment of the club’s facilities. He joined the Appointed at 2015 AGM, with effect on 9 August 2015. Term subject to ratification by the Council. Board as a Council representative after the AGM in 2015 and Scotland’s Solicitor General until recently and a former expires at 2016 AGM. is a member of the Audit and Nomination Committees. The General Committee member at Melrose RFC, Lesley was The Council-nominated non-executive Directors are Having served as Vice President in 2014/15, Edward former Stewart’s Melville player is also a Director of Hearts and the first woman to sit on the Scottish Rugby Board when she appointed, or re-appointed as the case may be, by the succeeded as President of the SRU at the AGM in 2015. Balls Charitable Trust and is a Trustee of the Murrayfield was appointed in 2013. Lesley is a member of the Audit and Council after the AGM, when vacancies arise. Their terms in He previously served on the Scottish Rugby Council as the Injured Players Foundation. Remuneration Committees. office vary. As a result of changes to the Bye-Laws approved Glasgow North regional representative. at the AGM in 2015 the current Vice-President, Rob Flockhart, Ian McLauchlan - Independent Non-Executive The Board met 11 times during the year, including a separate will, subject to members’ ratification, succeed as President Mark Dodson - Chief Executive Appointed 1 July 2012. Re-appointed for a further 3 years with strategy session and the two joint briefing sessions with the for a term of 2 years and as Chairman of Council will also then Appointed 19 September 2011. effect from 1 July 2015. Council. The Board conducts an annual evaluation of its performance with the outcomes reported to the Board as serve as a Director for those two years. The Vice-President Appointed Chief Executive in September 2011, Mark signed Ian played for Jordanhill, Glasgow and Natal, was capped a whole and procedures adjusted as appropriate following elected at the 2016 AGM will, subject to the Bye-Laws, take up a further five-year contract taking him to 2020. He is one for Scotland 43 times (19 as captain) and played in all Tests of that appraisal. The non-executive members of the Board also that post for 2 years, before becoming President. of Scottish Rugby’s representatives on World Rugby, the 6 the successful British Lions Tours of New Zealand in 1971 and meet regularly without the executive directors, other than the Other Council nominated non-executive Directors may serve Nations Council, European Professional Club Rugby and the South Africa in 1974. He served two terms as Scottish Rugby Company Secretary, present. for up to 3 years at a time, subject to remaining a member British & Irish Lions. Starting his career in 1979 at President, is an independent non-executive Director and a of Council. Eligibility for re-election to the Board depends on Media Group, he became Chief Executive of Guardian Media member of the Nomination and Remuneration Committees. remaining a member of Council and the application of the Group Regional Media in 2005 and was appointed to the Ian is Chairman of the British & Irish Lions Trust and a Director of Guardian Media Group Board. the Hearts and Balls Charitable Trust.

46 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 47 Board Committees Governance Standards Council members serving as international representatives for Scottish Rugby Union are also entitled to be paid a fee for During the period, the Board also operated three sub- All members of the Board and Council are required to comply their services on those bodies. The annual rates of fee for these committees. Membership of Board committees is restricted to with Scottish Rugby’s Code of Conduct. Under the Code bodies is £7,000 for Celtic Rugby, £7,000 for Rugby Europe, and non-executive Directors and at least one Council nominated of Conduct any alleged breach of the Code is subject to £25,000 for World Rugby / 6 Nations. The individuals in office in non-executive director serves on each committee. Executive consideration by an independent panel. No breaches or the course of the year are set out in the table below. Fees are Directors and other members of staff and external advisers alleged breaches were reported in the year. subject to pro-rating for part years. attend meetings regularly as required. Each committee has Development of Corporate Governance detailed terms of reference approved by the Board and Position Held Paid by During the period the Governance Working Party created the Council. in 2014 continued its work, with a new independent Edward A. Crozier Celtic Rugby CRL The Chairman of each committee presents a report to the Chairman, Magnus Swanson. Its work during the period and Ian Rankin Celtic Rugby CRL Board on that committee’s work at the next Board meeting. recommendations form the basis for the three motions to be Archie Ferguson Rugby Europe SRU proposed by the Council and Board at the 2016 AGM. Its report Audit Committee (Chair - Fergus Neil) is available on the Union’s website. Dee Bradbury Rugby Europe SRU Jim Littlefair, Mike Monro, Fergus Neil and Lesley Thomson served on this committee during the financial year. The The Council and Board remain committed to the continuing John Jeffrey World Rugby / 6N World Rugby / 6N committee is responsible for assisting the Board to discharge development and improvement of governance structures. The its responsibilities for accounting policies, financial reporting, Governance Working Party will continue during the 2016/17 internal financial control and risk management. The financial year. committee met 5 times during the financial year. Committee Notes: Remuneration and Benefits of Non-Executive and Council meetings are attended routinely by the Finance Director, Board Representatives 1. These rates were not changed in the financial year. the Financial Controller, the Company Secretary and The Union offers its non-executive Board members, including representatives from the Union’s auditors. 2. The fees payable to Edward A Crozier, Ian Rankin, Archie Council representatives on the Board, a fee for their service. Ferguson and Dee Bradbury reflect service for part of the Nomination Committee (Chair - Sir Moir Lockhead) The annual rates of fee applied for the non-executive Board year only. Edward A Crozier, Jim Littlefair, Sir Moir Lockhead, and members serving at the financial year end are set out below. Ian McLauchlan served on the committee during the These amounts are pro-rated for part years. Board members 3. Members of the Scottish Rugby Council receive no financial year. The Chief Executive and Company Secretary are also entitled to be reimbursed for expenses incurred remuneration in respect of their elected roles although also attend the committee’s meetings. This committee is wholly, exclusively and necessarily on Scottish Rugby business. are entitled to recover expenses incurred wholly, responsible for making recommendations to the Board as to exclusively and necessarily on Scottish Rugby business in Due to the application of Scottish Government rules on the membership of the Board and its sub-committees, the accordance with Scottish Rugby’s expenses policy. other appointments Lesley Thomson continued to waive any identification and recruitment of new Directors when required entitlement to fees during the year. 4. World Rugby, Six Nations Committee (6NC) and Celtic and the identification and appraisal of international body Rugby Limited (CRL) compensate the representatives/ representatives. Advice is taken from external consultants as directors serving on those bodies and the service fees required although none was required during the year. The Director’s Representative paid to the Scottish Rugby representatives involved were committee met 4 times in the period. Fee Bodies’ Fee Total as noted. Fees payable by those bodies during the £ £ £ Remuneration Committee (Chair - Colin Grassie) financial year to Mark Dodson and Dominic McKay were Colin Grassie, Mike Monro, Ian McLauchlan and Lesley Sir Moir Lockhead 35,000 - 35,000 disclaimed by the individuals and are retained by Scottish Thomson served on the committee during the financial year. Rugby. Edward A. Crozier 15,000 - 15,000 The committee is responsible for making recommendations, 5. Dominic McKay served as a director of Celtic Rugby within agreed terms of reference, on remuneration policies, Colin Grassie 15,000 - 15,000 Limited during the year, with Mark Dodson and Ian monitoring and approving executive directors’ and certain Jim Littlefair 15,000 - 15,000 McLauchlan (part year) and Robert Howat (part year) senior executive remuneration packages, setting and being Scottish Rugby’s nominated board members of monitoring key performance targets and reviewing succession Ian McLauchlan 15,000 - 15,000 European Professional Club Rugby. Any fees payable to planning. Approval of the remuneration of senior coaches and Mike Monro 15,000 - 15,000 Mark Dodson and Robert Howat were disclaimed. higher-earning players also falls within the committee’s remit. Fergus Neil 15,000 - 15,000 The committee met 4 times during the financial year. The Company Secretary attends meetings, with the Chief Lesley Thomson 0 - 0 Executive attending as required. Advice is taken from external consultants when needed, although none was required during the year. John Hardie and Ali Price, 1872 Scottish Cup

48 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 49 Board Report

The Directors present their Report and the audited consolidated financial statements for Diversity Plan, which can be located on our website, and we • state whether FRS 102 “The Financial Reporting Standard the year ended 31 May 2016. have appointed an Equality Champion. In addition we have applicable in the UK and Republic of Ireland” has been recruited an Equality and Outreach Manager. This role has followed, subject to any material departures disclosed been instrumental in imbedding equality and diversity and and explained in the financial statements; progressing actions within our plan. An overview and review of the Union can be found in the • notify its shareholders in writing about the use of disclosure Business Review, within the Strategic Report on page 42. Consultation with employees or their representatives has exemptions, if any, of FRS 102 used in the preparation of continued at all levels, with the aim of ensuring that their views financial statements; and Going Concern are taken into account when decisions are made that are The Directors believe that the Union has adequate resources • prepare the financial statements on the going concern likely to affect their interests and that all employees are aware to continue in operational existence for the foreseeable future basis unless it is inappropriate to presume that the Union of the financial and economic performance of their business and it therefore continues to adopt the going concern basis in will continue in business. units and of the company as a whole. Communication with preparing the financial statements. all employees continues through e-mail communication, The Directors are responsible for keeping adequate The Directors continue to budget for, and operate, the organisation-wide Engage newsletter briefings, CEO employee accounting records that are sufficient to show and explain Union on a cash flow positive and earnings positive basis. briefings and the distribution of the Annual Report. the Union’s transactions and disclose with reasonable Notwithstanding the challenging intra-industry and wider accuracy at any time the financial position of the Union and economic and market conditions, the Directors intend to enable them to ensure that the financial statements comply continue to operate on this basis and, therefore, look forward with the Companies Act 2006. They are also responsible for to the year ahead and the challenges that this brings. safeguarding the assets of the Union and hence for taking reasonable steps for the prevention and detection of fraud Employees and other irregularities. Scottish Rugby recognises the value and importance of promoting equal employment opportunities for its current The Directors are responsible for the maintenance and and future staff and considers all forms of discrimination integrity of the Union’s website. Legislation in the United to be unacceptable in the workplace. We aim to be an Kingdom governing the preparation and dissemination inclusive organisation where everyone is treated with dignity of financial statements may differ from legislation in other and respect and where diversity is valued across all of the jurisdictions. recognised equality strands detailed within the Equality Act Independent Auditors and Disclosure of Information to 2010. The organisation is committed to providing equal Auditors opportunities throughout recruitment, employment, training Sir Moir Lockhead So far as each Director is aware, there is no relevant audit and career development and has a comprehensive Equal information (that is, information needed by the Union’s Opportunities Employment Policy, Equality and Diversity Statement of Directors’ responsibilities auditors in connection with preparing their report) of which Policy and several other related policies that support the nine The Directors are responsible for preparing the Annual Report the Union’s auditors are unaware. protected characteristics within the Equality Act. and the financial statements in accordance with applicable law and regulations. Each Director has taken all the steps (such as making enquiries We are committed to adopting equitable employment of other Directors and the auditors and any other steps practices and terms and conditions which are based on the Company law requires the Directors to prepare financial required by the Director’s duty to exercise due care, skill and merits, ability and potential of individuals, and to avoiding statements for each financial year. Under that law the diligence) that he or she ought to have taken in his or her duty any conditions or requirements that cannot be justified by the Directors have elected to prepare the Union’s financial as a Director in order to make himself or herself aware of any needs of the job. As an example of this equitable approach, statements in accordance with United Kingdom Accounting relevant audit information and to establish that the Union’s Scottish Rugby has been granted the Positive About Disabled Standards comprising FRS 102 “The Financial Standard auditors are aware of that information. People award by Job Centre Plus, recognising our commitment applicable in the UK and Republic of Ireland”, and applicable to equality and confirming that applications from disabled law (United Kingdom Generally Accepted Accounting Directors people are always positively considered by the organisation. Practice). Under company law the Directors must not approve The Directors of Scottish Rugby Union plc who held office the financial statements unless they are satisfied that they give during the year, and up to the date of signing the Financial In addition to our employment practices, Scottish Rugby has a true and fair view of the state of affairs of the Union and of Statements are noted on pages 46 and 47. achieved the Intermediate Level of the Equality Standard: A the surplus or deficit of the Union for that year. In preparing Framework for Sport which is a collaborative effort between these financial statements, the Directors are required to: the four national Sports Councils, UK Sport and equality By order of the Board organisations to achieve measurable stands of equality. • select suitable accounting policies and then apply them Scottish Rugby has also been awarded the Preliminary Level consistently; Robert M Howat of the Equality Standard through our efforts and commitment • make judgements and accounting estimates that are Secretary to make rugby in Scotland open to all. A significant amount reasonable and prudent; Howe Harlequins v Glasgow University of work has been undertaken in producing our Equality and Edinburgh, 21 July 2016

50 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 51 Financial Statements

52 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 53 Independent Auditors’ Report to the Members of the Scottish Rugby Union

Report on the Group Financial Statements Other matters on which we are required What an audit of financial statements involves to report by exception We conducted our audit in accordance with ISAs (UK & Our Opinion Ireland). An audit involves obtaining evidence about the In our opinion the Scottish Rugby Union’s group financial Adequacy of accounting records and information and amounts and disclosures in the financial statements sufficient statements (“the financial statements”): explanations received to give reasonable assurance that the financial statements • give a true and fair view of the state of the group’s affairs Under the Companies Act 2006 we are required to report to are free from material misstatement, whether caused by fraud as at 31 May 2016 and of its surplus and cash flows for the you if, in our opinion: or error. This includes an assessment of: year then ended; • we have not received all the information and • whether the accounting policies are appropriate to • have been properly prepared in accordance with United explanations we require for our audit; or the group’s circumstances and have been consistently applied and adequately disclosed; Kingdom Generally Accepted Accounting Practice; and • adequate accounting records have not been kept by • have been prepared in accordance with the the Union, or returns adequate for our audit have not • the reasonableness of significant accounting estimates requirements of the Companies Act 2006. been received from branches not visited by us; or made by the directors; and

What we have audited • the Union financial statements are not in agreement with • the overall presentation of the financial statements. the accounting records and returns. The financial statements, included within the Annual Report We primarily focus our work in these areas by assessing the (the “Annual Report”), comprise: We have no exceptions to report arising from this responsibility. directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the • Consolidated Balance Sheet as at 31 May 2016; Directors’ remuneration financial statements. • Consolidated Income and Expenditure account for the Under the Companies Act 2006 we are required to report year then ended: to you if, in our opinion, certain disclosures of directors’ We test and examine information, using sampling and other remuneration specified by law are not made. We have no auditing techniques, to the extent we consider necessary to • Consolidated Statement of Cash Flows for the year then exceptions to report arising from this responsibility. provide a reasonable basis for us to draw conclusions. We ended; obtain audit evidence through testing the effectiveness of • Consolidated Statement of Changes in Equity for the year controls, substantive procedures or a combination of both. then ended; Responsibilities for the Financial In addition, we read all the financial and non-financial Statements and the audit • the accounting policies; and information in the Annual Report to identify material Our responsibilities and those of the directors inconsistencies with the audited financial statements and to • the notes to the financial statements, which include other As explained more fully in the Statement of directors’ identify any information that is apparently materially incorrect explanatory information. responsibilities set out on page 51, the directors are based on, or materially inconsistent with, the knowledge The financial reporting framework that has been applied in responsible for the preparation of the financial statements and acquired by us in the course of performing the audit. If we the preparation of the financial statements is United Kingdom for being satisfied that they give a true and fair view. become aware of any apparent material misstatements or Accounting Standards comprising FRS 102 “The Financial inconsistencies we consider the implications for our report. Our responsibility is to audit and express an opinion on the Reporting Standard applicable in the UK and Republic of financial statements in accordance with applicable law and Ireland”, and applicable law (United Kingdom Generally International Standards on Auditing (UK & Ireland) (“ISAs (UK Accepted Accounting Practice). & Ireland)”). Those standards require us to comply with the In applying the financial reporting framework, the directors Auditing Practices Board’s Ethical Standards for Auditors. Kenneth Wilson (Senior Statutory Auditor) have made a number of subjective judgements, for example This report, including the opinions, has been prepared for For and on behalf of PricewaterhouseCoopers LLP in respect of significant accounting estimates. In making such and only for the parent company’s members as a body in Chartered Accountants and Statutory Auditors estimates, they have made assumptions and considered accordance with Chapter 3 of Part 16 of the Companies Edinburgh future events. Act 2006 and for no other purpose. We do not, in giving 21 July 2016 these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or Opinion on other matters prescribed by the into whose hands it may come save where expressly agreed Companies Act 2006 by our prior consent in writing. In our opinion the information given in the Strategic Report and the Board Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

54 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 55 Principal Accounting Policies Principal Accounting Policies (cont)

The financial statements have been prepared in compliance %of capital and interest elements, with the capital element with United Kingdom Accounting Standards, including Land Nil applied to reduce the outstanding obligation and the interest Financial Reporting Standard 102, “The Financial Reporting element charged against the surplus or deficit for the period Stands and Heritable property 1-20 Standard applicable in the United Kingdom and the Republic on a straight line basis. of Ireland (“FRS 102”) and the Companies Act 2006. Fixtures and fittings 4-25 Assets held under finance leases are depreciated over the The principal accounting policies applied in the preparation Other equipment 7-50 shorter of the lease term and the useful lives of equivalent of these consolidated financial statements are set out below. No depreciation is charged on Assets under Construction. owned assets. These polices have been consistently applied to all the years Grants presented, unless otherwise stated. Details of the transition to Intangible Fixed Assets Revenue grants are credited to the income and expenditure FRS 102 are disclosed in note 22. Intangible assets comprise computer related software. The cost of intangible fixed assets is their purchase cost, account in the same period as the related expenses. These financial statements are prepared on the going together with any incidental costs of acquisition. The level Taxation concern basis, under the historical cost convention, as for capitalisation of intangible fixed assets has been set The Union has mutual trading status for taxation purposes as modified by the recognition of certain financial assets and at £5,000. Amortisation is calculated so as to write off the regards its trading activities with its members and pays tax liabilities measured at fair value. cost of intangible fixed assets, less their estimated residual only on the profit derived from trading with non-members. Basis of Consolidation values, over the expected useful economic lives of the assets Deferred Taxation is recognised on all timing differences The consolidated financial statements cover the year to 31 concerned. The straight line basis is used in respect of all where the transaction or events that give rise to an obligation May 2016 and include the Scottish Rugby Union, a mutual assets and the principal annual amortisation rates are: to pay more, or less, tax in the future have occurred by the organisation, its subsiding undertakings, Scottish Rugby Union % Balance Sheet date. Deferred tax assets are recognised plc and the Murrayfield Experience Limited, and a related Intangible Fixed Assets 7-50 when it is probable that they will be recovered. The tax rates body, the Thistle Rugby Trust. The parent body, Scottish in force at the Balance Sheet date are used to calculate the Rugby Union has not traded during either the current period No amortisation is charged on Assets Under Construction. need for any deferred tax provision or asset. or previous year and its only assets and liabilities are its Deferred Income investment in, and loans from, Scottish Rugby Union plc of Capital grants and debenture premiums are transferred to Financial Instruments £50,000. deferred income and amortised over the estimated useful The Union has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Turnover life of the associated fixed assets or the life of the debenture, Turnover represents ticket sales, broadcasting revenue and all respectively. (i) Financial Assets other income and is stated net of VAT. Revenue is recognised Debenture issue costs Basic financial assets, including trade and other based on the relevant contractual terms or in accordance The costs associated with the issue of capital instruments are debtors, cash and bank balances and loans, are initially with the occurrence of the relevant event. Where charged to the income and expenditure account on an recognised at transaction price, unless the arrangement consideration is received in kind, income and expenditure are annual basis over the minimum period remaining until the constitutes a financing transaction, where the transaction grossed up on the basis of arm’s length commercial rates. redemption of the associated instrument. is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are Tangible Fixed Assets Pension costs subsequently carried at amortised cost using the effective The cost of tangible fixed assets is their purchase cost, Contributions are made by the Union to money purchase interest method. together with any incidental costs of acquisition. Significant scheme pension arrangements for certain employees. sums are spent on maintenance of the Union’s main asset, Amounts due to assurance companies are charged against At the end of each reporting period financial assets BT Murrayfield Stadium, therefore the de-minimus level the income and expenditure account in the period in which measured at amortised cost are assessed for objective for capitalisation of assets has been set at £10,000 for the they become payable. The Union provides no other post evidence of impairment. They are first assessed individually first three asset categories below and at £5,000 for Other retirement benefits to its employees. for impairment, or collectively where the debtors are equipment. Depreciation is calculated so as to write off not individually significant. Where there is no objective Finance and operating leases the cost of tangible fixed assets, less their estimated residual evidence of impairment for an individual debtor, it is Costs in respect of operating leases are charged on a straight values, over the expected useful economic lives of the assets included in a group of debtors with similar credit risk line basis over the lease term. concerned. The straight line basis is used in respect of all characteristics and these are assessed collectively for assets and the principal annual depreciation rates are: Leasing and hire purchase agreements which transfer impairment based on their ageing. substantially all the benefits and risks of ownership of an asset If an asset is impaired the impairment loss is the difference are treated as if the asset had been purchased outright. The between the carrying amount and the present value of assets are included in fixed assets and the capital element the estimated cash flows discounted at the asset’s original of the leasing commitment is shown as an obligation under effective interest rate. The impairment loss is recognised in finance leases. The lease rentals are treated as consisting Strathallan School v George Watson’s College the Income Statement.

56 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 57 Principal Accounting Policies (cont) Consolidated Income & Expenditure account for the year ended 31 May 2016

If there is a decrease in the impairment loss arising from finance costs or finance income as appropriate, unless 2016 2015 an event occurring after the impairment was recognised, they are included in a hedging arrangement. Notes £000 £000 the impairment is reversed. The reversal is such that the Financial liabilities are derecognised when the liability is current carrying amount does not exceed what the Turnover extinguished, that is when the contractual obligation is carrying amount would have been had the impairment Ticket income 6,995 10,143 discharged, cancelled or expires. not previously been recognised. The impairment reversal is Broadcasting revenues 10,908 10,822 recognised in the Income Statement. (iii) Offsetting Other operating income 29,531 23,278 Financial assets and liabilities are offset and the net Other financial assets, are initially measured at fair value, amounts presented in the financial statements when there 47,434 44,243 which is normally the transaction price. is a legally enforceable right to set off the recognised Such assets are subsequently carried at fair value and amounts and there is an intention to settle on a net basis Costs the changes in fair value are recognised in the Income or to realise the asset and settle the liability simultaneously. International and Professional Rugby (23,998 ) (22,761 ) Statement, except that investments in equity instruments Domestic and Performance Rugby (7,509 ) (6,201 ) (iv) Hedging arrangements that are not publicly traded and whose fair values cannot Commercial and Operational (10,570 ) (10,876 ) The Union applies hedge accounting in respect of forward be measured reliably are measured at cost less impairment. Club Support and Development (2,937 ) (2,772 ) foreign exchange contracts held to manage the cash flow Depreciation (1,180 ) (1,053 ) Financial assets are derecognised when (a) the exposures of forecast transactions denominated in foreign

contractual rights to the cash flows from the asset expire currencies. These foreign exchange hedges have been (46,184 ) (43,663 ) or are settled , or (b) substantially all the risks and rewards designated as cash flow hedges. of the ownership of the asset are transferred to another The Union also applies hedge accounting for transactions Operating Surplus 1,250 580 party or (c) despite having retained some significant risks entered into to manage the cash flow exposures of and rewards of ownership, control of the asset has been borrowings. Interest rate swaps are held to manage the Net Interest 3 (404 ) (556 ) transferred to another party who has the practical ability interest rate exposures and are designated as cash flow to unilaterally sell the asset to an unrelated third party hedges of floating rate borrowings. Surplus on ordinary activities before taxation 1 846 24 without imposing additional restrictions. Changes in the fair values of derivatives designated (ii) Financial liabilities Tax on surplus on ordinary activities 4 (10 ) - as cash flow hedges, and which are effective, are Basic financial liabilities, including trade and other recognised directly in equity. Any ineffectiveness in the Surplus for the financial year payables, and bank loans, are initially recognised at 17 836 24 hedging relationship (being the excess of the cumulative transaction price, unless the arrangement constitutes change in fair value of the hedging instrument since The turnover and operating surplus shown above are derived from continuing operations within the UK. a financing transaction, where the debt instrument is inception of the hedge over the cumulative change in measured at the present value of the future receipts the fair value of the hedged item since inception of the discounted at a market rate of interest. Debt instruments hedge) is recognised in the income statement. are subsequently carried at amortised cost, using the effective interest method. The gain or loss recognised in other comprehensive income is reclassified to the income statement when Trade creditors are obligations to pay for goods or services the hedge relationship ends. Hedge accounting is that have been acquired in the ordinary course of discontinued when the hedging instrument expires, no business from suppliers. Accounts payable are classified longer meets the hedging criteria, the forecast transaction as current liabilities if payment is due within one year or is no longer highly probable, the hedged debt instrument less. If not, they are presented as non-current liabilities. is derecognised or the hedging instrument is terminated. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the Public benefit entity concessionary loans effective interest method. (including debentures) Concessionary loans arrangements, when received for the The derivative instruments utilised by the Union are interest purpose of furthering the primary objective of the Union, rate swaps and forward exchange forward contracts. which include any debentures or bank loans received below Derivatives are initially recognised at fair value on the date the prevailing market rate of interest are initially measured a derivative contract is entered into and are subsequently at the amount received. In subsequent years, the carrying re-measured at their value on the market price date amount of concessionary loans in the financial statements from relevant counterparties. Changes in the fair value is adjusted to reflect any accrued interest payable or of derivatives are recognised in the Income Statement in receivable.

58 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 59 Consolidated Statement of Comprehensive Income for the year ended 31 May 2016 Consolidated Balance Sheet as at 31 May 2016

2016 2015 2016 2015 £000 £000 Notes £000 £000 Fixed Assets Surplus for the financial year 836 24 Tangible fixed assets 5 39,097 39,547 Intangible assets 6 71 69 Other Comprehensive Income: Derivative financial instruments 10 - 18 Investments 7 2 2 Cash Flow hedges: 39,170 39,636 Change in value of interest rate hedging instruments (109 ) 34 Change in value of foreign exchange hedging instruments (353 ) 90 Current Assets Derivative financial instruments 10 197 133 Debtors 8 6,476 5,456 Other comprehensive income for the year (462 ) 124 Cash in hand 10 8

Total comprehensive income for the year 374 148 6,683 5,597

Creditors: amounts falling due within one year 9 (14,573 ) (20,231 )

Derivative financial instruments 10 (177 ) (9 )

Net Current Liabilities (8,067 ) (14,643 )

Provisions for liabilities 11 (48 ) (46 )

Total assets less current liabilities and provisions 31,055 24,947

Creditors: amounts falling due after more than one year 9 5,598 148 Financial liabilities 10 340 - Deferred income 12 1,933 2,070 Ten Year Debentures 13 1 1 Murrayfield Debentures 14 31,623 31,542 Irredeemable Debentures 15 97 97

Net assets 39,592 33,858

Capital and Reserves General reserve 17 (8,217 ) (9,053 ) Hedging reserve (320 ) 142

Total Shareholder’s Deficit (8,537 ) (8,911 )

Total Capital and Reserves 31,055 24,947

The financial statements on pages 56 to 74 were approved by the Scottish Rugby Board and signed on its behalf on 21 July 2016 by:

Sir Moir Lockhead OBE, Chairman

Mark Dodson, Chief Executive

60 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 61 Consolidated Statement of changes in equity for the year ended 31 May 2016 Consolidated Statement of cash flows for the year ended 31 May 2016

Capital Hedging 2016 2015 Reserve Reserve Total Notes £000 £000 £000 £000 £000 Net cash from operating activities 18 3,573 1,999 Balance as at 1 June 2014 (9,077 ) (18 ) (9,059 ) Cash Flow from investing activities Surplus for the year 24 24 Payments to acquire Tangible Fixed Assets (831 ) (1,877 )

Other comprehensive income Cash flow from financing activities for the year: Repayment of bank loan (500 ) (2,250 ) Finance lease (5 ) (4 ) • Fair value gain on interest rate derivative - 34 34 Interest paid on bank overdrafts and loans (298 ) (341 ) financial instrument Net cash used in financing activities (803 ) (2,595 ) • Fair value gain on foreign exchange derivative - 90 90 financial instrument Net increase/(decrease) in cash at bank and in hand 1,939 (2,473 )

Total other comprehensive income - 124 124 Cash and cash equivalents at the beginning of the year (2,064 ) 409 for the year Cash and cash equivalents at the end of the year (125 ) (2,064 ) Balance as at 31 May 2015 (9,053 ) 142 (8,911 )

Balance as at 1 June 2015 (9,053 ) 142 (8,911 )

Surplus for the year 836 - 836

Other comprehensive income for the year:

• Fair value gain on interest rate derivative - (109 ) (109 ) financial instrument

• Fair value gain on foreign exchange derivative - (353 ) (353 ) financial instrument

Total other comprehensive - (462 ) (462 ) income for the year

Balance as at 31 May 2016 (8,217 ) (320 ) (8,537 )

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

62 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 63 Notes to the Financial Statements Notes to the Financial Statements

1. Surplus on ordinary activities before taxation 2. Staff Costs (cont) 2016 2015 2016 2015 The surplus on ordinary activities before taxation is stated after crediting: £000 £000 Total Total Amortisation of deferred income 137 137 £000 £000 Barter transaction sponsorship income 1,099 851 Employment costs: Wages and salaries 21,833 21,052 And after charging: Social security costs 2,383 2,295 Auditors remuneration 28 25 Other pension costs 640 573 Auditors fees for non-audit services Tax compliance 13 8 24,856 23,920 Tax advisory 3 6 Other 11 2 At the year end the pension accrual was £234k (2015 - £159k). Depreciation charge for the year Owned fixed assets 1,165 1,041 Amortisation charge for the year 3. Net Interest Owned intangible assets 15 12 2016 2015 Operating lease rentals £000 £000 Plant & machinery 172 44 Interest payable on bank overdrafts (323 ) (474 ) Other 305 305 Amortisation of Debenture issue costs (81 ) (82 ) Barter transaction sponsorship costs 1,099 851 Administrative and management expenses 2,745 2,682 (404 ) (556 )

2. Staff Costs The rates of interest on the Union’s term loan borrowings are included in Note 10. The average monthly number of persons employed during the year who are involved in and support the Scottish game was:

2016 2016 2015 2015 4. Tax on surplus on ordinary activities No. No. No. No. 2016 2015 £000 £000 Rugby Current Tax: Professional Players 105 101 On profits arising from non-mutual trading 10 - Professional Teams - Coaching & Operations 23 24 Deferred: National Team - Coaching & Operations 8 9 Origination and reversal of timing differences 361 (27 ) Elite Development Players & Coaches 30 33 Movement in deferred tax unprovided (361 ) 27 Domestic & Performance 75 69 - Strength & Conditioning 16 11 10 - Medical & Physiotherapy 17 10

274 257 Factors affecting the current tax charge for the period: Stadium Operations 32 37 Surplus on ordinary activities before taxation 846 24 Commercial, marketing & other corporate functions 50 51 Corporation Tax at 20% (2015 - 20%) 169 5 TOTAL 356 345 Effects of: Net expenses not deductible for tax purposes 158 141 Within these figures: Crystallisation of tax losses (357 ) (112 ) Domestic & Performance includes employees within the BT Sport Scottish Rugby Academy, Domestic Rugby Support Non-taxable mutual profits (100 ) (150 ) Services, Participation & Development, Coach Development, Outreach & Equality, Schools & Youth, Domestic & Elite Depreciation in excess of capital allowances 99 88 Refereeing, and Age Grade & Other Coaches. Capital transactions 10 - Stadium Operations includes staff involved in Event Management, Ticketing and Stadium, Pitch & Grounds Maintenance. Movement in other timing differences 31 28 10 - Commercial, marketing & other corporate functions includes Commercial & Marketing, HR & Communications, Finance

& IT, Governance and Business Services. The Union has gross taxable profits arising in the period of £49k (2015 - £nil).

64 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 65 Notes to the Financial Statements Notes to the Financial Statements

5. Tangible Fixed Assets 7. Investments

Heritable Fixtures Other Assets Under The Union is the beneficial owner of 1,667 €1.27 ordinary shares in European Rugby Cup Limited (ERC), a company incorporated Property & fittings Equipment Construction Total in the Irish Republic. The Union’s holding represents 16.67% of the company’s issued share capital. £000 £000 £000 £000 £000 Cost The Union holds one €1.25 ordinary share in British Lions Limited, a company incorporated in the Irish Republic. The Union’s As at 1 June 2015 47,557 14,333 4,056 - 65,946 investment represents a 25% holding in the issued share capital of the company. Additions 132 26 557 - 715 The Union is the beneficial owner of 100 €1.00 ordinary shares in Celtic Rugby Limited, a company incorporated in the Irish As at 31 May 2016 47,689 14,359 4,613 - 66,661 Republic. The Union’s holding represents 33% of the company’s issued share capital.

Accumulated Depreciation The Union is one of three subscribers, the others being The Welsh Rugby Union Ltd and Union, to Great Britain As at 1 June 2015 10,898 12,408 3,093 - 26,399 Rugby Sevens Limited, a company incorporated in England and Wales, and limited by guarantee. Charge for year 684 224 257 - 1,165 Given the disposition of the other shareholdings in these companies, and the immateriality of their net surpluses and net assets As at 31 May 2016 11,582 12,632 3,350 - 27,564 after receipt of dividends by the Union, the Directors do not believe that these investments fall to be treated as associate companies. Fixed asset investments are stated at the lower of cost and valuation. Net Book Value As at 31 May 2016 36,107 1,727 1,263 - 39,097 8. Debtors

As at 31 May 2015 36,659 1,925 963 - 39,547 2016 2015 £000 £000 Amounts falling due within one year Trade debtors 5,668 4,413 6. Intangible Fixed Assets Other debtors 240 388 Prepayments 568 655 Computer Assets Under Software Construction Total 6,476 5,456 £000 £000 £000 Cost 9. Creditors As at 1 June 2015 197 - 197 2016 2015 Additions - 17 17 £000 £000 Amounts falling due within one year As at 31 May 2016 197 17 214 Bank overdrafts 135 2,072 Bank loans - 6,000 Accumulated Amortisation Obligations under finance leases 3 5 As at 1 June 2015 128 - 128 Advance receipts 5,771 4,391 Charge for year 15 - 15 Trade creditors 2,507 2,163 Other tax and social security 1,307 1,234 As at 31 May 2016 143 - 143 Accruals 4,850 4,366

Net Book Value 14,573 20,231 As at 31 May 2016 54 17 71

As at 31 May 2015 69 - 69 2016 2015 £000 £000 Amounts falling due after more than one year Obligations under finance leases - 3 Bank loans 5,500 - Other creditors 98 145 5,598 148

66 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 67 Notes to the Financial Statements Notes to the Financial Statements

9. Creditors (cont). Derivative financial instruments – Interest rate swaps 2016 2015 The Union has a term loan with Bank of Scotland of £5.5m (2015: £6m), with the balance being repayable in full by 30 June £000 £000 2020. The Union has also entered into an interest rate swap with the Bank of Scotland, which is used to hedge the Group’s Finance lease obligations to which the exposure to interest rate movements on the bank loan facility in relation to £5m (2015: £5.5m) of the term loan. This has fixed Union is committed are due: the interest rate on these borrowings over the period of the loan at an average rate of 3.491%. In one year or less 3 5 Between one and two years - 3 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 2016 was (£118k). The fair value 3 8 of the interest rate swaps in place on 31 May 2015 was (£9k).

Within Amounts falling due after more than one year, bank loans of £5.5m (2015 - amounts falling due within one year - £6.0m) are repayable in full by 30 June 2020. 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

Tenant Deferred Club Residual 10. Financial Instruments Tax Fund Total £000 £000 £000 Treasury policy Opening - 46 46 Treasury activity is focused on monitoring working capital, managing interest rate risk and managing currency rate risk. Transfer during period - 2 2 Treasury activity is not a profit centre and the Union neither enters into transactions of a speculative nature nor trades in financial instruments. Closing - 48 48

2016 2015 £000 £000 Deferred taxation comprises: 2016 2015 £000 £000 Financial assets that are debt instruments measured at amortised cost: Accelerated capital allowances 1,567 1,644 Trade Debtors 5,668 4,413 Other timing differences 414 362 Other debtors 808 1,043 Trading losses carried forward (3,033 ) (3,419 ) (1,052 ) (1,413 ) Financial assets measured at fair value through other comprehensive income: Deferred Tax asset not recognised 1,052 1,413 Derivative financial instruments 197 151 - -

Financial liabilities measured at amortised cost: Following due consideration of future anticipated taxable profits, the residual deferred tax assets on trading losses carried Bank Loans & Overdraft 5,635 8,072 forward has not been recognised on the basis that it will take some time for them to be fully recovered. The deferred tax Trade creditors 2,507 2,163 asset will be fully recoverable should there be appropriate future taxable profits. Other creditors 12,028 10,139

Financial liabilities measured at fair value through other comprehensive income: 12. Deferred income Derivative financial instruments 517 9 Heritable Debenture 2016 2015 Property Premium Total Total Derivative financial instruments- Forward Contracts £000 £000 £000 £000 The Group enters into forward foreign exchange contracts to mitigate the exchange rate risk for certain future foreign Opening 1,567 503 2,070 2,207 currency receivables. The forward foreign exchange contracts are measured at fair value, which is determined using Amortisation in period (31 ) (106 ) (137 ) (137 ) valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the year end spot exchange rates. The fair value of the forward foreign exchange currency contracts, at 31 May 2016 is (£202k) (2015: £151k) Closing 1,536 397 1,933 2,070

68 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 69 Notes to the Financial Statements Notes to the Financial Statements

13. Ten Year Debentures 16. Leases Class of Max. No. 2016 2015 Debenture Issue Debenture Value Each Authorised No. issued No. issued Operating Lease commitments 2009 Debentures J £1 500 90 90 K £1 1,000 429 429 2016 2015 L £1 200 78 78 £000 £000 2012 Debentures N £1 1,000 14 14 Land & Buildings; payable in O £1 1,000 180 180 1 year 374 265 2 to 5 years 1,394 1,060 Debentures issued 791 791 More than 5 years 265 530

The 2009 Debentures are unsecured, interest free and repayable at par on 31 May 2019. The 2012 Debentures are unsecured, 2,033 1,855 interest free and repayable at par on 31 May 2022. Holders of the 2009 and 2012 Debentures have the right to purchase a ticket for any event or match at the stadium for which the Union retains direct control over the allocation of all tickets. In respect of Six Nations matches, the ticket is for a specific seat. 17. General Reserve 2016 2015 £000 £000

14. Murrayfield Debentures Opening (9,053 ) (9,077 ) Class of 2016 2016 2015 2015 Surplus for the year 836 24 Debenture Value Each No. Authorised No. Issued £000 No. Issued £000 A £1,200 9,100 9,092 10,910 9,092 10,910 Closing (8,217 ) (9,053 ) B £2,200 7,900 7,900 17,380 7,900 17,380 C £3,500 1,000 1,000 3,500 1,000 3,500 Thistle £9,900 500 188 1,861 188 1,861 18. Reconciliation of operating surplus to net cashflow from operating activities 2016 2015 Debentures issued 18,180 33,651 18,180 33,651 £000 £000 Operating surplus 1,250 580 Issue Costs: Depreciation charge 1,165 1,041 Opening 2,109 2,191 Amortisation charge 15 12 Amortisation (81 ) (82 ) Deferred income amortisation (137 ) (137 ) Closing 2,028 2,109 Tenant club residual fund 2 2 (Increase) in debtors (1,020 ) (560 ) Net Issue Proceeds less amortisation 31,623 31,542 Increase in creditors 2,298 1,061

The Murrayfield Debentures are unsecured, rank pari passu and are interest free. Repayment, at par, is at the discretion of 3,573 1,999 the Company 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 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. 19. Reconciliation of net cashflow to movement in net debt

2016 2015 £000 £000 15. Irredeemable Debentures Increase / (Decrease) in cash in the year 1,939 (2,473 ) Amortisation of Murrayfield Debentures (81 ) (82) The 972 (2015 - 972) Debentures of £100 each (the 1925 Debentures) entitle the holder to purchase two tickets at BT Murrayfield Finance Lease 5 4 for each match directly controlled by the Union. The debentures are interest free. Repayment of bank loan 500 2,250 Change in net debt during the year 2,363 (301 ) Net debt at the beginning of the year (39,712 ) (39,411 )

Net debt at the end of the year (37,349 ) (39,712 )

70 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 71 Notes to the Financial Statements Notes to the Financial Statements

20. Analysis of net debt 22. Transition to FRS102 (cont)

31 May 2015 Cash Flows Other Changes 31 May 2016 Hedge accounting £000 £000 £000 £000 The Union did not apply hedge accounting under FRS26 of UK GAAP. Cash in hand 8 2 - 10 Cash at bank (2,072 ) 1,937 - (135 ) As a first-time adopter of FRS102, the Union will perform hedge accounting in accordance with Section 12 of FRS102. The Bank loans (6,000 ) 500 - (5,500 ) Union will apply hedge accounting for both the foreign exchange and interest rate hedges and also designate both as cash Finance lease due within one year (5 ) 2 - (3 ) flow hedges. The movement in the fair value of these derivatives, which is considered to be effective, is recognised in other Finance lease due after one year (3 ) 3 - - comprehensive income as a result of applying hedge accounting. The ineffective movements are recognised in the income Irredeemable Debentures (97 ) - - (97 ) statement. Murrayfield Debentures (31,542 ) - (81 ) (31,623 ) Ten Year Debentures (1 ) - - (1 ) Public Benefit entity concessionary loans (including debentures) The Union, as a public benefit group, has elected to recognise off-market loans as concessionary loans and account for them (39,712 ) 2,444 (81 ) (37,349 ) as per Section 34 of FRS102. Under Section 34 of FRS102, concessionary loan arrangements are initially measured at the amount received or paid. In subsequent years, the carrying amount of concessionary loans in the financial statements is adjusted Debentures have been treated as public benefit entity concessionary loans as they were received below the prevailing market to reflect any accrued interest payable or receivable. To the extent that a loan that has been made is irrecoverable, an rate of interest and for the purpose of furthering the primary objective of the Union. impairment loss shall be recognised in the income statement. Under UK GAAP, these debentures were also initially measured at the amount received or paid and in subsequent years, the carrying amount adjusted to reflect any accrued interest payable or receivable. Therefore no adjustments were necessary on transition.

21. Related Party Transactions Reconciliation of surplus or deficit for the year 2015 Three of the directors of Scottish Rugby Union plc, Mike Monro and Edward A Crozier and Jim Littlefair, were also trustees of £000 the Murrayfield Injured Players Foundation during the year. Scottish Rugby Union plc does not charge the charity for any Surplus for the financial year as previously reported under UK GAAP 24 administrative or other support that it provides and made no donation to it in the current year or previous period. FRS 102 items - Surplus for the financial year under FRS102 24 During the period to 9 August 2015, in which Ian Barr was a director of Scottish Rugby Union plc, £1k (year ended 31 May 2015 - £16k) of ad hoc grounds and facility services were purchased from WH & R Barr, a firm in which Mr Barr is managing partner. At the end of the year, £nil (2015 - £nil) was outstanding. Reconciliation of other comprehensive income Fergus Neil, a director of Scottish Rugby Union plc acts as a referee performance reviewer for domestic and EPCR, on behalf 2015 of Scottish Rugby. The fee payable to Mr Neil for this service in the year was £975 (2015: £1,125). £000 Other comprehensive income for the financial year as previously reported under UK GAAP -

Change in fair value of interest rate hedging instruments 34 22. Transition to FRS102 Change in fair value of foreign exchange hedging instruments 90

This is the first year that the Union has presented its results under FRS102. The last financial statements prepared under previous Other comprehensive income for the financial year under FRS102 124 UK GAAP were for the year ended 31 May 2015. The date of transition to FRS102 was 1 June 2014. Set out below are the changes in accounting policies which reconcile the surplus for the financial year ended 31 May 2015 and the total equity as at 1 June 2014 and 31 May 2015 between UK GAAP as previously reported and FRS102. Reconciliation of equity Transition exemptions 1 June 31 May The Union has taken the transition exemption under paragraph 35.10(t) of FRS102 in respect of applying hedge accounting 2014 2015 to a hedging instrument which exists at the date of transition. £000 £000 Total reserves as previously reported under UK GAAP (8,978 ) (8,954 ) Description of changes in accounting policies made on first-time adoption of FRS102 are as follows: Change in fair value of interest rate hedging instruments (43 ) (9 ) Change in fair value of foreign exchange hedging instruments 61 151 Holiday Pay Accrual (99 ) (99 )

Total Reserves as reported under FRS102 (9,059 ) (8,911 )

72 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 73 Notes to the Financial Statements Five Year Summary

22. Transition to FRS102 (cont) 2016 2015 2014 2013 2012 £000 £000 £000 £000 £000 Notes to the reconciliations Income 47,434 44,243 43,730 39,275 38,226

Financial instruments The derivative instruments utilised by the Group are interest rate swaps and foreign currency forward contracts. On Expenditure: transition to FRS102, the Group has adopted hedge accounting for its exposure to both interest rate and foreign exchange International and risks. As per paragraph 12.23(b) of FRS102, the portion of the gain or loss on the hedging instrument that is determined to be Professional Rugby 23,988 22,761 23,614 20,884 19,116 an effective hedge is recognised in other comprehensive income. Domestic and Performance Rugby 7,509 6,201 4,969 4,701 4,494 (i) The movements in interest rate hedging instruments, designated as cash flow hedges, should be recognised as reserves rather than the profit and loss account under FRS102. Accordingly, the cumulative losses of (£43k) at 1 June Commercial and 2014 and (£9k) at 31 May 2015 are recognised as a hedging reserve with the corresponding hedging instrument Operational 10,570 10,876 10,077 8,874 9,207 recognised as other financial liability in the balance sheet. Club Support and Development 2,937 2,772 2,251 1,932 1,900 (ii) The movements in foreign exchange hedging instruments, designated as cash flow hedges, should be recognised in reserves rather than the profit and loss account under FRS102. Accordingly, the cumulative gain £61k at 1 June 2014 Depreciation 1,180 1,053 1,257 1,100 1,131 and £151k at 31 May 2015 are recognised as a hedging reserve with the corresponding hedging instrument recognised 46,184 43,663 42,168 37,491 35,848 as other financial asset in the balance sheet.

Holiday pay accrual Operating Surplus 1,250 580 1,562 1,784 2,378 FRS102 requires short term employee benefits to be charged to the income and expenditure account as the employee Surplus on sale of Fixed Asset - - - - 121 service is received. This has resulted in the company recognising a liability for holiday pay of £99k on transition to FRS102. Under UK GAAP holiday pay accruals were not recognised. Surplus on ordinary activities before interest 1,250 580 1,562 1,784 2,499 Other Adjustments arising on transition to FRS102 Net interest (404 ) (556 ) (702 ) (926 ) (919 ) In addition to the transition adjustments identified above which affect surplus for the financial year the following adjustments have arisen which have had no effect on net equity or the income & expenditure account but which have Surplus before taxation 846 24 860 858 1,580 affected the presentation of these items on the balance sheet. The main item is: Taxation (10 ) - - - (10 )

(a) Computer software, with a net book value of £50,000 at 1 June 2014, has been reclassified from tangible to intangible Surplus for year / period 836 24 860 858 1,570 assets as required under FRS102. This has no effect on the company’s net assets nor on the surplus for the year, except Note (1) that the previous depreciation charge is now described as amortisation. Capital Expenditure 732 1,040 1,558 534 636

23. Scottish Rugby Union Group Note (1) – 2014 represents a 13 month period, ended 31 May 2014. Other columns represent one year, ended 31 May for 2015 and 2016, and 30 April for other years. The Scottish Rugby Union carries out all of its operations through its wholly owned subsidiary, Scottish Rugby Union plc, the registered office of which is BT Murrayfield Stadium, Edinburgh, EH12 5PJ. For accounting purposes the group is also deemed to include the Thistle Rugby Trust. The group has taken advantage of the exemption conferred by FRS102 from the need to disclose transactions between group entities that have been eliminated on consolidation in these group financial statements.

74 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 75 Commentary on the Financial Statements

This section provides a general commentary on the income and event costs are also included. Similarly, expenditure for also included here. Similarly included are the costs of other and expenditure categories for the year ended 31 May 2016. the delivery of the programme related to funding from the support staff and programmes in the areas of ticketing, HR, Cashback for Communities grant is included here. procurement, IT, finance, governance and business services. Turnover Finally, the costs of the communications and corporate The investment in The BT Sport Scottish Rugby Academy is Scottish Rugby’s turnover comes from a number of areas. affairs team and related activity across the wide spectra of included in this category, with costs including coaching, National team match ticket sales, including the RBS 6 Nations print, broadcast, web and other social media are part of this facilities, programmes and players, kit, equipment and and other home international matches, pro-club match category. match venue and logistics. Specialist coaching costs are ticket sales, together with related broadcasting revenue included here, as are analysis and other rugby operational provide a significant element of this. Match day income also Club Support and Development support costs. This area also includes investment in the exiles includes revenue from pitchside advertising boards, match Scottish Rugby recognises that investment in the sport programme. programmes and revenue from hospitality activities. The sale at grassroots level is a key element in maintaining and of merchandise throughout the year is a further important Referee development, from grassroots to international level, growing the game of rugby. Clubs are supported through source of income. includes the costs of referee coaching, travel to games, kit, the payment of Participation Monies, Player Accident and staffing and office expenditure for those employed in this Insurance, contributions to cup and league travel costs, the Scottish Rugby is grateful for funding from its many sponsors area. Referee costs also include salary, travelling expenses Club Sustainability Fund and the payment of all referees’ including BT and Macron. All of Scottish Rugby’s partners and associated costs for professional refereeing. travel costs across the country. Ticket commissions which are noted at the back of the Annual Report. Scottish Rugby clubs receive for sales of international and sevens tickets is also grateful for significant grant funding from World Scottish Rugby delivers coaching courses throughout are included here as are player reward scheme payments, Rugby, sportscotland and the Cashback for Communities Scotland, including United Kingdom Coaching Certificate where clubs’ contributions to the development of players programme. Turnover also includes income from European (UKCC) ones. The costs of these are included here and the who have gone on to win academy or professional contracts Professional Club Rugby (EPCR) and the Guinness Pro12 delivery of this programme is part funded by sportscotland. are acknowledged. The joint funding of Club Development League, and from other events held in BT Murrayfield Stadium This area also includes the staff in the Coach Development Officers in partnerships with both clubs and local authorities including dinners, business conferences, concerts and team, training and facility costs, and course resources, as across the country is also part of club support and Christmas party nights. well as tutor and registration fees. The costs of a number of development expenditure. other coaching resources and initiatives, including the on-line International and Professional Rugby training hub, workshops and conferences, and Rugby Right Depreciation The expenditure relating to the players, management, are also part of this area’s expenditure. Depreciation is the annual charge in respect of Scottish medical and strength & conditioning teams involved in Finally, the provision of medical services from physiotherapists Rugby’s fixed assets, primarily the redevelopment costs of International and Professional rugby is within this category. and doctors, for cover at various domestic and performance BT Murrayfield Stadium. This includes travel, food and accommodation at venues, rugby events and matches are included here, as are related salaries, kit, laundry costs, travel insurance, training facilities, strength and conditioning costs. honours caps and team coach hire for all of the Scotland teams playing at international level. It also includes all Scottish Rugby is grateful for the support of sportscotland and Pro-club costs, being players’, coaches’ and support staff World Rugby grants which assist in the delivery of a number of salaries together with kit, travel and other coaching costs, and the above programmes. match day outgoings such as advertising, turnstile staff, ticket Registered Office Auditors printing, venue preparation and entertainment. Commercial & Operational BT Murrayfield Stadium PricewaterhouseCoopers LLP Commercial and Operational costs cover various areas of Expenditure in the provision of medical services, including Edinburgh, EH12 5PJ Chartered Accountants and activity in Scottish Rugby. The running costs of the national physiotherapists, match doctors for the players, crowd doctors, Statutory Auditors stadium are included and these range from pitch repair and and the medical supplies needed to support players involved in Level 4, Atria One, preparation to roof and other stadium maintenance, and Bankers international and professional rugby is included in this category. 144 Morrison Street, include security, insurance, rates, electricity, gas and water, Also included is the investment in the strength and conditioning Bank of Scotland Edinburgh, EH3 8EX all of which continue to ensure that BT Murrayfield remains a personnel who work with the National and Professional teams, Head Office suitable, safe, and well maintained venue. Also included are together with the associated programme costs. The Mound, match day and non-match day operational and staff costs, Edinburgh, EH1 1YZ Solicitors as are other event management and entertainment costs. Domestic and Performance Rugby Pinsent Masons Grassroots investment, which is key in helping to develop the Marketing and commercial expenditure is included in this Princes Exchange players and coaches of the future, as well as maintaining and area, where the costs of partnering with, developing and 1 Earl Grey Street, growing the game, is included in this category. The domestic maintaining Scottish Rugby’s family of sponsors are recorded. Edinburgh, EH3 9AQ rugby team, which is supported by sportscotland, together The activation costs of marketing campaigns, promotional with associated programme costs, including travel, training materials, media events and other operational activities are Stewart’s Melville v Watsonians

76 Scottish Rugby Annual Report 2015/16 Leadership . Engagement . Achievement . Enjoyment . Respect 77 Thank you to Our Partners

Principal Partners

Official Partners

78 Scottish Rugby Annual Report 2015/16 Scotland Women v France Women Broadwood Stadium, Cumbernauld

Front cover Back cover Photography Editor Mark Bennett and Scotland 7s celebrate SNS Group Bronwyn Torrie winning the London 7s Produced by Designer v Australia, RWC 2015 Scottish Rugby Laura Chessar