Scottish Rugby announces financial cuts after recording £20m losses, with 35 jobs at risk

Scottish Rugby has announced a “financial reset” after recording losses of around £20m, with 35 jobs at risk as a result.

The governing body has put a pause on all future recruitment, with the exception of appointing a new CEO and performance director, and will carry out a consultation process with staff told that roles are at risk of redundancy.

Funding for the pro teams appears to be untouched for the current financial year. The plan will also see investments made in the stadium to improve revenue opportunities and customer experience, with an expansion of hospitality at Scotland games.

Murrayfield bosses hope that the financial restructure can put Scottish Rugby on course to be profitable in the 2026/27 financial year after recent financial reports made for worrying reading.

A statement released on Monday said that the organisation had suffered losses of around £10m in each of the last two accounting periods. The loss for 12 months up to May 2024 is at £6.7m, with a further loss of around £3.1m forecast for the next financial year before the outlook improves.

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.”

A review of staffing in every department has already taken place, with 35 positions identified as being potentially removable. Scottish Rugby says no outcomes have been predetermined and that all proposals have been shared with at-risk staff.

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

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.”