caption ANNUAL CONTENTS As part of the financial presentation at Stage 3 of Scottish Rugby’s AGM on Tuesday 22 December, President & Chairman 3 REPORT we are pleased to provide members with additional financial information on Financial Year 2019/20. Player & Coach Numbers 4 Strategic Report 6 We would like to place on record our thanks for your patience in Ensuring that members are informed about the effect of the what has been an unprecedented year for our clubs and Union, pandemic on the organisation, and in particular, have sufficient Board Report 10 both on and off the pitch. With a fair sense of hope that life can time to consider the financial information and ask questions Independent Auditor’s Report 14 return to a semblance of normality in the coming months, we can about them, is a priority for the Council and Board. cautiously look forward to 2021 and the safe return of our sport We have provided this Report as a means of providing members across Scotland. FINANCIAL STATEMENTS with additional detail in advance of that third and final stage of Furthermore, we would like to express our appreciation to the our AGM, supplementing the information already made available Principal Accounting Policies 16 Scottish Government for the emergency sports funding package, by way of the Annual Review and Financial Summary sent to Primary Statements 20 from which Scottish rugby will be able to access up to £20 million members already. of grants and low-interest loans to help offset the financial impact Notes 25 Scottish Rugby has worked to ensure that clubs and the wider of the Covid-19 pandemic. Five Year Summary 36 rugby community in Scotland can weather the storm wrought Commentary on the Financial Statements 37 We are delighted to present a full audited set of accounts for by the global pandemic in the least damaging way and we look the Financial Year 2019/20 in this document, ahead of Stage 3 forward to the resumption of rugby across the country when it is of Scottish Rugby’s AGM on 22 December, with a headline that deemed safe to do so. the business realised a £2.87m surplus after tax for the financial period, considering these factors: • ongoing trading and operations were, as happens every fourth year, impacted by the RWC which reduced our income Ian Barr, levels and increased our costs from what they otherwise President, Scottish Rugby might have been; • the impact of the Covid-19 pandemic from February 2020 John Jeffrey, was material, in particular in relation to the deferral or cancellation of certain international and professional rugby Chairman, Scottish Rugby SCOTTISH RUGBY income streams; and BT Murrayfield, Edinburgh EH12 5PJ • the welcome conclusion of a significant investment in the 0131 346 5000 | scottishrugby.org | @scotlandteam Guinness Pro14 tournament by CVC offset the loss which would otherwise have been incurred. (Our receipts, after deduction of professional fees, as at 31 May 2020 following All information correct at time of publication 14 December 2020. To download a copy please visit scottishrugby.org that transaction are described under “Income from interests in associated undertakings” in the Results for the Year, on page 20.) Scottish Rugby | Annual Report 2019-20 3 2018/19 2019/20 TOTAL REGISTERED PLAYERS 36,207 36,966 2019/20 PLAYER & COACH NUMBERSREGISTERED PLAYERS The season 19/20 figures show a slight increase in player numbers. The final figure 36,966 is an increase of 759 net. The registrations for the year saw an increase in new unique registrations of 8,400 however this is then offset by a drop of 7,641 registrations that became inactive, and the removal of duplicate accounts. The vast majority of the increase comes from registrations at S1/U13s, which is the point at which a player needs to be registered to play in competitive rugby and appear on team sheets. Inactive accounts are identified either by the individual player or by the club SCRUMS Administrator. In the future Scottish Rugby will identify player registrations where a player has not appeared on a Teamsheet for two consecutive years and an e-mail will be sent to both the individual and the club to confirm if the registration is still for a playing member. GLASGOW GLASGOW CALEDONIA CALEDONIA EAST NATIONAL NORTH SOUTH MIDLAND NORTH Adult Male 4,383 2,937 1,501 2,566 2,026 13,413 Adult Female 487 479 263 441 456 2,126 MALE ADULT 11,028 13,413 Youth Male 6,014 4,407 2,450 3,843 2,589 19,303 Youth Female 431 508 371 467 347 2,124 TOTAL 11,315 8,331 4,585 7,317 5,418 36,966 Non-registered * 1,009 1,231 380 1,092 357 4,069 TOTAL 12,324 9,562 4,965 8,409 5,775 41,035 Figures correct as at 31 May 2020. *Tartan Touch MALE YOUTH 21,176 19,303 REGISTERED COACHES The coach registration process went live in season 19/20. To date 3,507 have registered in SCRUMS. SCRUMS is being developed as the portal for all coaching qualifications from season 21/22. We expect to see an increase in the registered coaches when the coaching qualification moves online. We would remind clubs that the PVG clearance for coaching staff requires that the coach is registered in SCRUMS. GLASGOW GLASGOW CALEDONIA CALEDONIA EAST NATIONAL NORTH SOUTH MIDLAND NORTH Female 66 61 33 62 48 270 Male 1,258 582 380 609 408 3,237 FEMALE ADULT 1,658 2,126 TOTAL 1,324 643 413 671 456 3,507 FEMALE YOUTH 2,345 2,124 Figures correct as at 31 May 2020. 4 LEADERSHIP . ENGAGEMENT . ACHIEVEMENT . ENJOYMENT . RESPECT Scottish Rugby | Annual Report 2019-20 5 STRATEGIC REPORT Under the powers delegated by the Bye-Laws of Scottish two home international matches prior to the Rugby World Cup Commercial and Operational spend also fell, by £0.3m, primarily shareholding, completed a significant strategic partnership Rugby Union, the Directors of Scottish Rugby Union Limited, in 2019 compared with three November Test matches during the in relation to the absence of a number of events in the final investment with CVC. Ultimately, this resulted in dividends being in their capacity as the Scottish Rugby Board, present their prior year. As a result, Ticket Income fell by £5.3m. Broadcasting months of the year, due to Covid-19. Salary reductions have paid to Scottish Rugby Union Limited in May 2020 of £8.4m. strategic report for the year ended 31 May 2020. revenues fell by £4.5m, primarily due to the effects of Covid-19 also impacted each of these areas. The Club Support figure of Subsequent to the year end, in October 2020, a further tranche of on the 2020 Guinness 6 Nations tournament. With only 11 of the £3.0m is around £0.1m lower than the previous year and includes income was received in relation to the partnership, the value of Principal Activities scheduled 15 games played in the year, broadcasting income from the first release of the Club Hardship fund. It does not include which was £9.4m. A further sum may be payable up to Financial The principal activity of the Scottish Rugby Union is to promote the tournament was similarly proportioned. Without the effects the support given to Super 6 clubs, which is included in the Year 2024/25, depending on the financial performance of the the game of Rugby throughout Scotland, using its wholly owned of Covid-19, broadcast income from the Guinness 6 Nations Domestic and Performance Rugby section. Similarly, the total Pro14 group. subsidiary Scottish Rugby Union Limited, “the Company”, for all tournament would have increased compared with the prior year. rugby development expenditure of £7.1m does not include this The Directors continue to monitor borrowing levels, income trading activities. Further, in relation to Broadcasting income, the value attributable support. The increase of £0.2m in Depreciation is as a result of and expenditure against budget on a monthly basis. They also to the two pre-Rugby World Cup matches in 2019 was lower than current and prior year asset additions. Business Review monitor other key business issues including Professional and that for the three November Tests in 2018. Commercial income Average cash debt is measured using the mean value of the National Team performance which are fundamental to the The Union continues to work towards key areas in its plan, has risen £0.2m, in what remains a continuing challenging global weekly bank balances over the course of the year. The average Union’s strategy of growing the game within a stable commercial including winning teams, revenue growth & sustainability, sponsorship environment. Covid-19 has had a similar effect on cash debt over the year amounted to £4.1m, which is £4.9m environment. developing talent, growing the domestic game and sustainable this category of income in relation to the deferral of Guinness 6 behind the prior year, generally as a result of the operating result clubs. Further detail is also outlined in the Annual Review. Nations sponsorship as a result of the number of games played. On pages 10 to 35, the Directors in their capacity as the Scottish and the timing of cash flows related to ticket income and advance Professional rugby income fell from £13.3m to £10.1m, generally Rugby Board present their report and audited consolidated Within the course of the year, a number of notable factors have receipts in relation to the Rugby World Cup in 2019. The net bank as a result of the Covid-19 related curtailment of the season, both financial statements for the year ended 31 May 2020.