Scottish Rugby jobs at risk as governing body bids to ‘reset’ financial position

Scottish Rugby staff are facing job cuts after their employer revealed the governing body expects to record a year-end loss of £10.6m.

A two-year timetable to “reset” Scottish Rugby’s financial position has been agreed by both Scottish Rugby Limited and Scottish Rugby Union Boards, with an aim to return break even by 2025-26 and return to profit the following year.

The year 2022-23 also resulted in a £10.5m loss, prompting what those at the top deemed necessary action.

Around 35 roles are potentially at risk for redundancy, while future recruitment is paused, with the exception of the roles of chief executive and performance director.

Scottish Rugby confirmed in a statement that “player recruitment for both Edinburgh Rugby and Glasgow Warriors is unaffected for the forthcoming season.”

“Significant funds” will be allocated for investment in Murrayfield over the next two financial years, both for what Scottish Rugby deems to be “essential” improvement works alongside customer experience upgrades, including an improved hospitality offering to drive revenue.

Scottish Rugby’s announcement also indicates that, subject to collective consultation, “the financial reset may see significant elements of the male and female pathways realigned with the rugby development department, providing improved connection between the grassroots game and the two pro teams.”

The organisation’s latest year-end forecast takes into account a number of actions including the proposed redundancies and hiring freeze, while there are also plans to increase sponsorship opportunities and commercial partnerships.

The forecast indicates the organisation recording a loss of around £10.6m for financial year 2023-24, subject to external audit – £6.7m for the 12 months to May 2024 – with the 2023-24 year being a 13-month accounting period.

Scottish Rugby chair John McGuigan, said: “This will be challenging in the short-term, but necessary.

“For our sport and business to grow we have taken the difficult, but we believe the right, and responsible approach to secure the longer-term future of our game.

“This reset is critical to realise the ambitions we are committed to as part of our strategy.”

Scottish Rugby president Colin Rigby added: “We understand that this process may have implications for some of our colleagues and we are committed to handling this period sensitively and respectfully.

“Our priority remains securing the future of the Scottish Rugby for generations to come, while minimising the impact on our colleagues and key stakeholders.”

A significantly reduced loss, projected to be around £3.1m in the 2024-25 financial year is expected to be followed by a break even position in 2025-26 and a return to profit in the following year.

Scottish Rugby ends its financial year with cash reserves of £16m and will receive a further £7.4m in July, arising from previous private equity investment in Six Nations.

At the end of financial year 2026-27, according to the report, “cash reserves are forecast to be consistent with the current position.”

The reset plan and accompanying budget were reviewed by independent financial experts and agreed by Scottish Rugby board on 21 June and the Scottish Rugby Union Board on 27 June.

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