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Scottish Rugby explain recording £11.3million deficit for 2023/24

By PA
Scotland players react during last Sunday's loss to South Africa (Photo by Stu Forster/Getty Images)

Scottish Rugby officials have insisted that the organisation has a clear plan in place to “return to a sound financial footing” after recording an £11.3million deficit for 2023/24. The governing body acknowledged it is a “significant loss” but said “a series of measures are now under way to reduce costs further in the 2024-25 financial year to provide a pathway to profitability in 2025/26”.

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The results presented in the latest accounts cover a 13-month period from June 1 2023 to June 30 2024, with the inclusion of the 13th month leading to an additional loss of £3.3m.

Other reasons given for the eight-figure loss were: expenditure in professional rugby, high performance rugby, club and school support Funds, increased administration and governance costs, an additional month of employee and operational costs, Scotland’s preparation for and attendance at the 2023 Rugby World Cup, the move to the new player pathway and winding down of Super Series and the continuing investment in the women’s game and pro team budgets.

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Scotland head coach Gregor Townsend on that red card and other missed opportunities

Scotland head coach Gregor Townsend believes his team had some “bad luck” in their 15-32 defeat to the Springboks at Murrayfield on Sunday.

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Scotland head coach Gregor Townsend on that red card and other missed opportunities

Scotland head coach Gregor Townsend believes his team had some “bad luck” in their 15-32 defeat to the Springboks at Murrayfield on Sunday.

A loss in the region of £3.8m is forecast for the 2024/25 financial year, followed by a break-even position in financial year 2025/26 and a return to profit in the following year.

Professor Lorne Crerar, the Scottish Rugby Union chair, said: “The new budgetary and supporting plan has now been put in place after much hard work, and despite further significant losses recorded for 2023/24, there is cause for optimism going forward.

“The SRL (Scottish Rugby Limited) board is making steady progress through its financial reset programme, ensuring the restoration of Scottish Rugby to a sustainable business model. Encouragingly, the SRU board approved the budget for financial year 2024/25 in June, and SRL has made headway in meeting its revenue and cost targets.

“All those involved in the journey of Scottish Rugby, including our stakeholders, the boards of SRU, SRL and CRB, together with all our Scottish Rugby colleagues, have contributed to meeting the challenges of this financial year. I am in no doubt that all acting in concert, we will ensure that we successfully meet the challenges of the future.”

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Scottish Rugby Limited chair John McGuigan added: “On arriving as the chair of SRL in June 2023, it soon became apparent that alongside a number of known challenges such as our ageing stadium, there were some deeper and more immediate issues to tackle, particularly around our financial sustainability.

“Since those issues were identified, we have been working tirelessly to ensure we return Scottish Rugby to a sound financial footing. Doing so will allow us to focus on other strategic matters crucial to the development of the game at club, professional and international level.

“We have confidence that the actions we are taking are already starting to reduce the underlying cost base. This is in parallel to work being undertaken to look at increasing our future revenue growth and bring to life new commercial opportunities.

“We are determined to ensure that trend continues until we reach a sustainable, long-term position; a target we are committed to achieving in the financial year 2026/27.”

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J
JW 5 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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