Analysis: Scottish Rugby’s £10.5m loss – it’s worse than you think

The Scottish Rugby Union AGM will take place at Murrayfield tomorrow [Saturday] morning

Scottish Rugby Chief Executive Mark Dodson was paid £676k in the last financial year. Image: © Craig Watson -
Mark Dodson's time as the SRU chief executive officer has finally come to an end. Image: © Craig Watson -

IN 2019, Scottish Rugby stood on the edge of a financial precipice, yet Mark Dodson tried at that year’s AGM to claim that the business was debt free, which, as he was subsequently forced to acknowledge, clearly was not the case.

Enjoying the benefits of John F Kennedy’s celebrated aphorism about a rising tide lifting all the boats, turnover had risen 74% from £35.1m to £61.1m since his appointment in 2011, but operating costs had ballooned 84.1% from £32.9m to £60.5m and the operating surplus had sunk to an unsustainable 0.9% of turnover.

Net current liabilities of £10.4m and debentures of £44m stood against a £41.5m valuation of Murrayfield. Price Waterhouse only signed off on the 2020 accounts once the Scottish Government’s £20m Covid bail-out was confirmed in December 2020, and Joe Fitzpatrick, the Minister for Public Health, Sport & Well Being at that time, when challenged about the disproportionality of this payment compared to other sports such as football, said: “Rugby’s need was more desperate – they needed this cash just to keep the lights on”.

The Covid bail-out and the Six Nations deal with CVC should have significantly changed the financial dynamics of Scottish Rugby – but they have not. Record Revenues of £67.9m produced a record deficit of £10.5m in the year to 31st May 2023 and no amount of fancy accounting can change that. The present financial model is unsustainable and the attempt to camouflage reality and whitewash its consequences in the 2023 Annual Report is both an insult to the member clubs and a serious threat to the revised governance structure.


The Strategic Report references 2019 as the pre-covid year with the same match profile of four Autumn Tests and three home Six Nation games, and claims that ‘Ticket Income’ has increased 50% from £15.8m to £23.7m ‘due to better pricing profile and better performance on the field driving up volume as well as yield’ but in the 2019 Annual Report,  Dominic Mackay (the Chief Operating Officer at that time) told us that all four Autumn Tests and the three Six Nations games were sell-outs – so the 50% increment in ticket income is solely down to the higher price of the tickets.

The winner of the Six Nations is reportedly paid £5m with a sliding scale down to £1.0m for sixth – so finishing third in 2023 should increase the Six Nations ‘take’ (which presumably falls into Broadcasting Revenues) by around £883k, yet 2023 ‘Broadcast Revenues’ are down on 2022.

‘Commercial Income’ is down 7.1% on 2022.

Whilst revenue from ‘Professional Rugby’ has stuck at £10.5m, selling 28% of the URC to CVC was always going to reduce the income stream of the two professional teams in percentage terms, but it would now appear that the anticipated intrinsic growth has not been strong enough to compensate, which will be bad news in the medium to long term, given that the current net cost of the professional game is £15.2m, despite Edinburgh’s 6% attendance growth and its reported doubling of commercial income since 2018/19.

‘Development Income & Grants’ were down 30.6% from £3.2m to £2.2m.

‘Hospitality & Other Income’ was boosted by the Beyoncé, Harry Styles and Bruce Springsteen concerts in May. A note tells us that revenues include £1.1m of recharges for stewarding, etc – presumably with a view to manipulating these charges out from the 15% calculation for investment towards the club rugby budget.

‘Ticket Income’ has grown 50% to £23.7m since 2019, and now accounts for 35% of the overall turnover of £67.9m. The other five categories of income have flat-lined, with the use of Murrayfield as a concert venue covering the fall in development income and grants.

According to Scottish Rugby’s own figures, crowd numbers were the same in 2019 as in 2023 so the sole source of growth has lain in ticket prices. Scottish Rugby complains of a ‘hyper-inflation environment” but inflation was single digit throughout the accounting period; indeed, the only evidence of ‘hyper-inflation’ within the report lies in their own 50% hike in ticket prices.  How long will supporters accept these prices and how much scope is there for further growth?

Operating Costs

Through the pandemic, ‘Operating Costs’ rose by 3.1%, from £59.2m in 2019 to £61.1m in 2022, but then jumped by 23.5% from £61.1m to £75.4m in the year to 31 May 23.


The spend on ‘International Rugby’ rose by 21.5% from £11.2m to £13.7m in 2023.

Scotland played four Autumn Tests and five Six Nations games in season 2022-23 plus three Test matches on their South America tour. The WRU 2023 Annual Report shows international match fees of £3.5m for their 12 games in the year to 30th June 23 (which equates to £12,500 per game) so it is not unreasonable to assume that the Scottish players are paid at a similar level, though there is zero transparency on this in Scottish Rugby’s financial statements.

According to the Strategic Report, the £833k Six Nations bonus was shared with the players.

The South America tour must have cost close to £1.0m.

The Strategic Report claims that £2.5m was ‘invested’ into the Women’s National Team, but the reported 28 new player deal was not signed until November 2022, and only 15 were in place by the year end, which, at most, could only have cost £350k in hard cash.

All of which leaves some £8m for ancillary costs such as coaching, medical, travel and accommodation.



‘International Rugby’ and ‘Professional Rugby’ have only been shown separately in Scottish Rugby’s financials since 2021, but in these three years the charge for Professional Rugby has jumped 45.2% from £17.7m in 2021 to £25.7m in 2023 with the number of male professional players going up 12.6% from 111 in 2021 to 125 in 2023, with the consequent gross cost per player going up from £159k in 2021 to £206k in 2023, an increase of 29.6%.

The Annual Report tells us that “some £2.5m of strategic funds were invested” in the professional teams during the year after a “benchmarking exercise had shown that this type of investment was necessary to secure performance in the pro teams”. Laying aside for the moment the semantics of whether or not player wages can ever be considered an investment rather than an operating cost, one would have to ask for details of the benchmarking exercise and suggest that perhaps similar exercises led to the demise of Wasps, Worcester Warriors, London Irish and Jersey Reds who all, of course, lived out-with the comfort blanket of their national body.

It is interesting to consider the £25.7m spent on professional rugby in 2023 through the prism of the Guinness Premiership’s £5m salary cap, which, with allowances for marquee players and international credits allows an average authorised spend per club on player wages of around £6m.

Assume that, contrary to the tacit assumption that Edinburgh and Glasgow are confined to tight budgets, both clubs work to this £6m figure for playing wages – then consider the breakdown of Coach & Player wages on Page 54 of the Annual Report which, working to the median figure for each band gives a total charge of £16.5m – then deduct £3.5m for the national side which leaves £13m for the two pro teams split £12m for the players and £1m for the back-up staff – which prompts a big question as to where exactly the other £12.7m (£25.7m minus £13m) goes.



The Strategic Review suggests  that “de-centralisation of the strength and conditioning, medical and other performance rugby costs from Performance Rugby” was a significant factor in the increase in the 2023 Professional Rugby costs but there is no compensating reduction the Performance Rugby costs which, indeed, have risen from £4.1m in 2022 to £4.7m in 2023.

Spending on ‘Domestic and Club Support’ for the year to 31st May 2023 came in at £4.3m each, £8.544m in total, or 12.6% of Revenue, as against the 15% which will apply from next year under the new governance structure. There is, however, no detail as to the proportionate split between money ‘invested’ within  Murrayfield’s crowded corridors and cash actually dispensed to the pit-face.

The Strategic Review pointedly implies that under the new rules, with the 15% calculation being based on the previous four years turnover, the ‘investment’ in the grassroots would only have been £8.531m. Petty stuff but symptomatic of a mind-set which infers that the £200k allegedly invested in SCRUMS and any administrative costs incurred in support of the grassroots should be included in the calculation, ignoring that Lorne Crerar’s submission to the member clubs in May 2022 implicitly excluded non Rugby Development Department’s overhead costs from the calculation.

This same mind-set has shown a pronounced aversion to any suggestion that revenue expenditure set against the ‘Strategic’ CVC monies should be brought into the calculation, and is distinctly apathetic to the view that the ongoing FoI request, once it eventually returns the requested data, might very well confirm that funds from the £15m Covid Recovery Grant should rightfully be redirected to the clubs.

‘Commercial’ costs are up £2m (44.7%) year on year from £4.5m to £6.5. According to the Strategic Report “our contribution to Six Nations running costs and the revenue share to private equity” are included, but no further detail is forthcoming.

‘Facilities’ costs have soared 53.9% from £6.6m to £10.2m due to increased usage, the removal of post Covid rate relief, energy wholesale prices and most significantly an ageing stadium where chronic under investment is now beginning to take a serious toll (something which must be addressed – and funded!).

‘Administration & Governance’ costs have held comparatively steady – yet still gone up 6.5% from £5.7m to £6.1m.


The root cause of Scottish Rugby’s financial difficulties is not hyper-inflation, but a bloated and overpaid payroll.

As Gordon McKie, Dodson’s predecessor as Chief Executive, pointed out, in an interview with the Sunday Times in April 2020, Scottish Rugby’s headcount had grown to 450 from 280 and the annual payroll had nearly doubled since he left in 2011 –  and according to 2023 Financial Statements the average monthly headcount has grown still further to 479.



Total employment costs were £39.2m or 57.8% of the £67.9m turnover, which effectively means that for every £1 that came in the door, 58 pence went out on wages.

The average wage was £70,960 and the average cost per employee was £81,891.



These figures are given perspective by the grid in the Governance section of the Annual Report (Page 54) splitting employees into their salary bands and inadvertently revealing that the head count had gone up to 509 by the year end.



It is difficult to understand, how, with 59 more people on the payroll on 31st May 2023 than there had been on 1st June 2022, £695k can have been spent during the year on “redundancy and restructuring”.

It is also difficult to understand how in an organisation where the average wage is £70,960, the directors can justify a 3.5% salary increase ‘across the business’ plus a ‘one-off’ 3.5% ‘cost of living award’.

Directors fees and salaries for the year to 31May 2020 amounted to £1405k.

Mark Dodson was paid £676k (2022: £578k).

John Jeffrey was paid £59k, £22k of which was reimbursable by World Rugby

The non-execs were paid £68k (£16k each to Bob Richmond, Hazel Swankie and Lesley Thomson)

The balance (£624k) was split between the three other executive directors (Shona Bell, Hilary Spence & Jim Mallinder) with two of them being paid £200k+ and the other is in the £100/£200k band.

The Annual Report tells us in the section dealing with Dodson’s remuneration [page 53] that: “The difference between the figures quoted for 2021/22 and 2022/23 is due to an accrual for accounting reasons to provide towards a contractual payment which is due when the director’s service contract ends. Payment of an equivalent amount which was due to that director from the Long Term Incentive Plan that was in place in 2018/19 and which was terminated during the Covid-19 pandemic, was deferred voluntarily by that director at that time.”

This is hard to follow given that when Dodson announced on 13th April 2020, at the height of the pandemic, that he was waiving his bonus entitlements for 2019-20, there was no mention of this being a temporary measure, and the 2020 statutory accounts indicate clearly that the Long Term Incentive Plan had been terminated at 2018-19. It is understood that the terms of the £5m loan received from the Scottish Government in early 2021 prohibited bonuses.

Dodson’s current contract, which is until June 2025 (four months short of his 65th birthday), was unveiled in June 2022; nearly 18 months before his previous contract ran out and just a few months before the new governance structure was voted in by an overwhelming majority of member clubs. It is highly unusual for the CEO of rugby governing bodies to have fixed-term contracts, let alone be contractually entitled to a termination bonus.

The difference between a bonus and a termination payment is not explained.

‘Strategic Investments’

Lorne Crerar, in his introduction to the Annual Report, tells us that: “The accounting treatment for investment transactions carried out in previous years is complex and has contributed to the significant swing from profit to loss”. Following the cash removes any complexity, but Mr Crerar will need to explain how the accounting treatment has contributed to the significant swing from profit to loss.

In cash terms, £18.2m has been received from CVC for PRO14/URC and £19.7 for the Six Nations. A further £14.4m is due for the Six Nations over the next couple of years and there may be a further cash tranche due for URC in 2024-25. The only hard cash expenditure has been the £5.4m repayment of the Hive Stadium loan – so the net cash surplus is £32.5m, which should have been ring-fenced for the redevelopment of the main Murrayfield Stadium, instead of which it is being frittered away on revenue items.

Women’s Rugby (£2.5m) is, admittedly, a step change which might possibly, along with the legal costs of the new governance structure (£377k), be justified as strategic, but pro team wages (£7.8m), the Old Glory write-off (£881k) and redundancy payments (£659k) are not by any definition, strategic investments, and should not be treated as such.

Dodson admits in the Annual Report that: “Although tolerable in the short-term this investment position is unsustainable in the long-term and requires the Group to examine the market over a more extended period gauging what the sport needs over a ten-year horizon to stay relevant and competitive.”

He sees the crash coming but is happy to carry on driving with his eyes shut because in 2026 when the final two tranches of the CVC money is gone and Murrayfield is crumbling to bits, it won’t be his problem anymore.

Scotland’s clubs cannot afford to sit in the back seat of the car any longer. They need action from the new governance structure and they need it now. They need it to insist on payroll cuts and they need it to insist on CVC money being ring-fenced for the redevelopment of Murrayfield.

  • To view the Annual Report, click HERE.

John McGuigan interview part one: “The world around us is changing so we as an organisation will change with it”


  1. What a stunning and frightening analysis of the SRU accounts .It beggars belief that the SRU have been able to once again fool the clubs into passing and approving the accounts as published.
    At every turn the clubs are being pushed more and more into the rubbish bin and treated with total contempt whilst the business that they own is heading towards destruction.
    Come on clubs,get a backbone and stand up against the dictators and bullies in the SRU that are ruining your long standing business.

  2. Please don’t forget that Dodson, that fount of sensitivity and rugby expertise, together with his apparently insensitive and incompetent pal Jeffrey and our “world-renowned” concussion programme, greatly increased two years of heartache for Siobhan Cattigan’s family. I warned Lorne Crerar about this over a year ago. I’ll cut Mr McGuigan some slack for having had the conscience to reach out.

  3. You have a clue what you’re talking about.

    Your comments quite clearly show you have zero grasp of accounting practices.

    Whatever your day job is. Please stick to it.

    All these Dodson “groupies” really need to do a little thinking about their position.

    He has doubled our cost base since 2011, and made no inroads on the debt other than to position it in fantasy land. He surrou ds himself with lackies, and those with their nose in the trough.

    Meanwhile the Rugby has become tertiary to the commercial interests of the board, and their salaries.

    All of this has been enabled by the nativity of the union.

  4. Great article and your right its worse than perhaps it seemed to some.

    What is particularly worrying for me is that this should be no surprise to the SRU ie they knew it was coming and effectively allowed a £10m loss to occur which is shocking financial management. Its not as if there were any exceptional or unexpected items either in revenue or expenditure. The revenue is all very forecastable and the expenditure likewise.

    Any proper financial forecasting system would show the budgeted spend and estimated revenue from the start of the year
    which would clearly show a £10m deficit was always going to be the outcome. You can only assume that the SRU don’t monitor their finances in year or they do (which I think they must) and accepted they would take a big loss.

    Its hard to see the revenue changing much in future years, in fact this year is a 2 home game 6 Nations so there will be even less revenue than the past year. So unless costs are reduced then the loss for next year could easily be greater.

    What is also staggering is that there has been no commentary from the SRU on the financial position and any plans to address the situation. If this was any other business they would have to explain their finances and plans to improve them in future years and their share price would probably take a major hit.

  5. Excellent analysis no wonder AG is throwing another tantrum. Significant lack of Bear based condescension to tell us how stupid and petty we all are for being concerned. The new Chair couldn’t be further out of his depth if he was tied to an anvil heading for the Marianna Trench. The fix for all of this is attainable but will take decades not years and the longer we wait the more painful it will be

    • What is your idea for “The fix”. I would be seriously interested to know as for me its clearly a reduction in spend, but from which areas?

      • I can see a way £676k can be saved for a start. The recipient could be more than adequately replaced by a pot plant which at the very least wouldn’t try to mislead people or treat them with total contempt.

      • Super 6 Old Glory and all foreign scouting and recruitment would be an immediate and massive saving. Clear out the whole board and have strict pay caps with bonuses based on actually essential KPIs eg grassroots participation figures, 6n finishing positions for Men Women Age Grade, getting through to knockout stages for RWC for all teams. There is NO justification for a Scottish CEO earning multiple times what the Irish one is. Use the vast media machine to start promoting the club game instead of funding deluded roasters like AG2 who try to call the SRUs OWN figures fake news.

  6. Excellent article with detailed analysis.

    For those who have a contrary view, please share that with us including your workings as done in this piece.

    I worked for a business whose CEO stated “the seeds of your failure are sown at the height of your success”. The article makes reference to the “debt free years” which were nothing of the sort as we had substantial debt just not in the overdraft. The means used to get this “debt free” position was in cutting stadium investment.

    We now find ourselves in a much more perilous position with escalating costs, a highly inflationary construction sector and a stadium in need of significant investment.

    All those high executive salaries will have to be earned to get us out of that conundrum.

  7. The majority of this article seems to me to be Fake News and fancy wording to ‘put a spin’ on whats actually going on in Scottish Rugby.

    In my opinion Scottish Rugby are in a very successful place, and the financial rewards will come from performances on the field and off

    Who contributed from TOL to this hit-piece is what i would like to know. Put some names behind it.

    • What nonsense, clearly don’t know your numbers. This is an excellent piece of analysis that is simply giving more detail on the SRU spending and deficit. As I said wt the time you can’t sustain a business running at a loss of £10m pa on revenues of less than £70 m. Costs will have to be reduced unless there is a big increase in revenue which seems unlikely.

    • Angry Galaman2 .
      Think you’re batting for the wrong side with you’re comments
      Gie yersell a shake mun .
      And have some common sense for a change

  8. Bravo Mr & Mr Barnes, bravo. An excellent and quite forensic analysis.

    Custodians (and our auditors), are you listening?

  9. Where is a certain former prop to tell us how everything is just fine and not to worry our pretty little ordinary supporter heads over all of this.

  10. Well the truth is coming out now .they’ve run out of ways to hide it
    Too many of those employed are ‘ Jobs for the boys ‘ who get shunted around due to constant failure
    They should be jettisoned..
    Looking at some of the high heed yins salaries .it’s Mind boggling for what they do .
    Super6 is another ‘white elephant .costing millions .to the detriment of club rugby in Scotland
    Dodson has pulled the wool over our eyes for years syphoning hundreds of thousands of £s for himself .
    But now it’s come back to bite him in the buttocks for all to see that things are not hunkydory .

    • Spot on Mouse. The SRU could be Scotland’s newest local authority – SRUshire. Seems to be run like a local council.

      Golden handshakes for chief execs who have achieved little
      Ridiculous salaries for the execs and other higher uppers
      Rewarded for failure
      Moved somewhere else in the organisation if you don’t do well where originally posted
      Make people redundant, pay redundancy costs and then employ more people
      Zero accountability

      Must be good to be on the gravy train 🚂

  11. Outstanding analysis. Maybe John Mcguigan would like to address the fundamental weaknesses in the SRU finances.

  12. Thank you for a first class analysis.
    It is time the clubs flexed their muscles and challenge these bloated overheads.

  13. Excellent analysis.

    “Custodians” observed fiddling while Murrayfield burns underneath their bums…..?

    • How can Murrayfield be crumbling? Yes the East Stand is now 40 years old but the rest is a decade younger. Rebuilding the stadium every 30 years is not sustainable. Neither is relying on concerts and the associated hospitality as they won’t always happen. One solution is to raise tickets to Twickenham level. £100 to sit behind the goals anyone?


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