Scottish Rugby’s Annual Report for Covid-19 affected 2020/21 season published
Scottish Rugby has today issued its 2020/21 Annual Report for the Covid-19 affected season which outlines the impact the pandemic had on the sport and the steps taken to support clubs across the country.
Read the report in full here: Scottish Rugby 2020/2021 Annual Report
The Report provides a detailed look at the financial and operational assistance provided to clubs which faced an early end to the 2019/20 season, followed by an enforced pause on competitive rugby at all levels to respect public health guidance.
Clubs made significant contributions to their local communities throughout the past 12 months and their actions were described in the Report as “extraordinary” by Scottish Rugby President Ian Barr.
International and professional rugby was able to continue without spectators during the 2020/21 season and saw some stand-out results. Scotland Men won in Twickenham and Paris in the Guinness Six Nations as historical records tumbled and the team finished in 4th place, with three wins.
Scotland Women secured a valuable victory over Wales in their respective Six Nations, a first home win at Scotstoun Stadium.
Edinburgh Rugby played out a disappointing season in the PRO14 and Europe, while Glasgow Warriors ended their campaign with a set of positive results in the Rainbow and 1872 Cups.
Scottish Rugby’s sponsors and partners continued to provide invaluable support during the 2020/21 season with BT, SP Energy Networks and RBS all extending their associations and Peter Vardy returning with a new deal which will see it become the new front of shirt sponsor for Scotland Men.
The importance of being connected was also paramount during the pandemic-affected season and the Annual Report highlights how digital platforms enabled over 10,000 Covid-19 and 677 mental health e-learning courses to be delivered across the rugby community.
With fans unable to attend matches in person digital engagement grew across Scottish Rugby’s own channels, which saw a 10% rise to over one million followers during the 2020/21 season.
On the financial side, Scottish Rugby’s accounts show how external income from private equity investment in the Guinness Six Nations, advances from World Rugby, combined with grant and loan support from Scottish Government and the Job Retention Scheme offset a very challenging trading position created by the complete loss of all ticketing revenue and reductions in a number of other income sources as a result of the pandemic over the period to the financial year end on 31 May 2021.
The anticipated loss for both the national men’s team and the professional teams in total was in the region of £18.5m. Similarly, loss of hospitality, food & beverage and other ancillary income streams was anticipated to have an impact of around £2m. There was a risk to other broadcast and sponsorship revenues, as a result of the ongoing pandemic, although generally these held up better than anticipated.
In addition, the professional teams’ ticket income would normally have been anticipated to be around £2.5m, but other than a nominal sum generated at the test event in August 2020, was nil for the year.
Turnover and other income for the year was £52.5m, compared with the prior year level of £55.5m. There were a number of contributors to this position. In operations, Ticket Income fell to nil. Broadcasting revenues increased by £8.6m, primarily relating to the timing of the conclusion of the 2020 Guinness 6 Nations tournament, with £4.3m of income being received in the current year, rather than the prior year, representing an £8.6m swing between the years, as this tournament concluded in Autumn 2020.
Commercial income dropped by £1.3m, in a challenging global sponsorship environment, coupled with a lack of event- related commercial income in the course of the year.
Professional rugby income fell from £10.1m to £5.4m, generally as a result of the Covid-19 effects on the season, both directly at the two teams, Glasgow Warriors and Edinburgh Rugby, but also from broadcast and sponsorship income streams from EPCR and PRO14.
An overall surplus for the year of £10.5m was reported, consisting of an operating surplus of £1.9m (in which £3.3m of net income related to the conclusion of the 2020 Guinness 6 Nations Championship), and net interest cost of £0.2m, together with income of £9.85m in relation to the CVC investment in the PRO14 tournament and a tax charge of £1.05m.
Included within the operating surplus is £13.5m of the £15m Scottish Government grant funding. The £1.5m balance will appear in next year’s figures, during which it will directly fuel further Club Support expenditure initiatives; the Return to Rugby Fund and the Club Recovery Fund.
Drawing on this income Scottish Rugby was able to confirm in April a £6.5 million injection into the community game over the next five years – part of the most comprehensive and sustained investment in the Union’s history – encompassing the Club Recovery Fund; Return to Rugby Fund; and Growth & Participation Fund.
All are designed to enable clubs to restart the game safely post-pandemic and that funding is on top of annual club support payments, which are to be £3 million per annum and be linked to inflation over the next five years.
While the ultimate financial result for the year and Balance Sheet position at the year-end show a satisfactory position, this has only been possible through prudent financial management, timely negotiation and receipt of investment funds, and financial support from many parties, including our people, partners, supporters, sponsors, suppliers and, significantly, the Scottish Government and World Rugby.
In summary, therefore, the year-end cash position of £20.7m is healthy, however the underlying trading position remains challenging, and work will continue to build back towards the £61.1m total turnover figure achieved in the year ended 31 May 2019.
Scottish Rugby Chairman John Jeffrey said: “The past season, that we have faced and come through together, has tested our tenacity and resolve as never before.
“It’s no hyperbole to reflect that without the help and strong desire to “do our bit” from so many people – our clubs, our players, our employees, our supporters, our sponsors, our Government, our volunteers – that coronavirus could have wrought irreparable damage on the very fabric of our game in Scotland.
“As I write, the indications are that the vast majority of the restrictions which have rendered rugby off limits in our communities throughout Scotland since March 2020, are due to be lifted by Government in the coming weeks.
“The pandemic has taught us to take nothing for granted but the joy at looking ahead to returning to competitive rugby action in the 2021-22 season is a powerful emotion and one that our clubs, alongside all at Scottish Rugby, are determined to harness.”
Scottish Rugby President Ian Barr said: “The 2020/21 season will forever be remembered as one that challenged our sport and our people as never before.
“From uncertainty and concern though came numerous examples of the positive role our clubs play in their community as we dealt with the impact of coronavirus and national lockdowns.
“We weathered through and saw in the spring signs for optimism as players, coaches and volunteers were able to return and clubs gradually re-open.
“The Annual Report therefore shows both the financial and human impact of the past season and how we have emerged, as Scottish Rugby, through the support and generosity of Scottish Government, our partners, sponsors and people to a position we are can look forward to our sport resuming again in the coming weeks and months.”
Scottish Rugby Chief Executive Mark Dodson said: “My sincere thanks to everyone associated with the game in Scotland for the Herculean effort that continues apace to get us back to playing, refereeing, helping or watching our game, or, indeed to welcoming newcomers to our sport.
“Without doubt this was an exceptional year that generated a standalone set of financial results which a number of notable factors have contributed towards. These include ongoing trading and operations, addressing the continuing challenges presented by the Covid-19 pandemic, the benefits of the investment in the Guinness Pro14 tournament by CVC and the receipt of government support funds, which the Union and the game gratefully acknowledges.
“This has enabled us to have some confidence in our ability to continue to support the game in Scotland, at every level, on both an operational and financial basis as we move out of the grip of the pandemic and can therefore present a stronger balance sheet at 31 May 2021 to support a recovering trading position moving forward.
“If the last 16 months has taught us anything, it’s that the rugby community in Scotland is one that endures through the toughest of times. To say that the values and togetherness of rugby people has been remarkable would be to almost downplay the resilience of those associated with clubs across the country. It really has been humbling to see at every level.”
Read the report in full here: Scottish Rugby 2020/2021 Annual Report
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