Scottish Rugby have warned of up to 35 potential redundancies as part of a financial reset programme following heavy losses in recent years.
Future recruitment, except for the roles of CEO and performance director, has been paused with 35 jobs at risk as a result of the major financial plan.
A headcount review identified 35 positions as being potentially removed with a collective consultation due to commence shortly for roles at risk.
It's stated: "No outcomes have been predetermined and all proposals already shared with our employees are subject to the consultation process."
A statement has revealed the financial programme aims to reshape the organisation and lay foundations for future growth.
Investments will be made in stadium improvements and development to improve customer experience and revenue opportunities through increased hospitality offerings.
There will also be a focus on increasing wider sponsorship opportunities and commercial partnerships.
The statement adds: "In making these changes the ability to invest in rugby, including the pro teams, has been maintained for financial year 2024/25."
The overarching ambition of the financial reset is to provide a "pathway to profitability in the 2026/27 financial year following c.£10m losses in each of the last two accounting periods.
A significantly reduced loss, expected to be around £3.1m in 2024/25 financial year is thought to be followed by a breakeven position in 2025/26 before returning to profit the following financial year.
Scottish Rugby Limited chair John McGuigan said: “The financial sustainability of Scottish Rugby is our absolute priority as it enables all the other things we aspire to do to work. We have taken proactive steps to achieve this and the Scottish Rugby Limited Board will continue to keep our financial position at the forefront of its decision-making. “We tasked our Executive team to reprioritise resources, so we can follow our planned strategy for future investment and growth. 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. “It has been an incredibly difficult decision to propose that a number of our people might have to leave the business. I’d like to acknowledge and thank everyone for their contribution to Scottish Rugby to date and reassure those whose roles may be affected that we will manage this process with care and compassion.” Scottish Rugby Union chair, Professor Lorne Crerar CBE, said: “The principal purpose of the SRU Custodian Board is to ensure the health and wellbeing of Scottish Rugby for the current generation and those to follow. “It is clear that the journey of the operations of Scottish Rugby, as manifested by the £10.5M loss, disclosed in our 2022/23 Annual Accounts, had to fundamentally change course. “Much work has been done to develop a strategy for the next 10 years which will transform the way the organisation works and ensure Scottish Rugby’s impact on future generations both on and off the pitch. A cornerstone of that strategy is to build a robust financial position upon which to build the future. “The strategy and aligned budget plans for financial year 2024/25 have been endorsed and supported at the recent SRU Board meeting at which the external advisors were also present to provide support and answer questions in relation to the key components of the budgetary outcomes. “Although the challenges going forward for Scottish Rugby are significant, we have every confidence in John McGuigan and his colleagues on Scottish Rugby Limited Board to navigate these difficulties grounded upon the new strategy and operational budget for financial year 2024/25 and beyond. The proposed loss of colleagues in this evolving process is deeply upsetting for all involved in Scottish Rugby and underpinning the approach will be principles of fairness and empathy. “Going forward, progress towards budgeting and strategic objectives will be carefully monitored and regularly reported to the Clubs and stakeholders of Scottish Rugby.” Scottish Rugby president Colin Rigby said: “In common with others, Scottish Rugby has faced significant financial challenges in recent times. In light of this situation, the Scottish Rugby Limited Board has made the difficult decision to reset our financial approach, fully supported and endorsed by the SRU Board. Our primary goal is to ensure the long-term viability and growth of Scottish Rugby. “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.”
