Cash crisis hits Scottish Rugby Union

The Scottish Rugby Union have been hit by a major financial crisis with 20 jobs set to be lost.

SRU chief executive Bill Watson has told staff the SRU will have to make savings of between £2-3million – with £800,000 of those savings being on labour costs.

Consequently, players at the three professional clubs – Glasgow, Edinburgh and Borders – whose contracts run out this summer could find themselves looking for a new club.

But Watson has pointed the finger at a lack of sponsorship and lesser television revenue as reasons for the dramatic cuts which will be taken to off-set losses of income for the autumn Test series which will not take place this year due to the World Cup in Australia.

Watson said: “At a domestic level we have delivered record revenues which in turn have led to record investment in Scottish club rugby, sustained two professional teams, introduced a third to The Borders and increased sponsorship values over two years by 70% to more than £4million.

“But the facts are that we have seen a downturn in the global economy.

“Sponsorship and television rights revenues internationally, specifically at Six Nations levels, have not met expectations.

“As we anticipated, the Rugby World Cup in Australia in October and November this year means we lose the revenue we would generate normally from our Autumn Tests and that has a huge impact on our business, which we can only offset to a limited extent by the introduction of three RWC countdown Tests in August/September.

“We have sought to explain to the game’s worldwide governing body, the IRB, the difficulties the international sponsorship and TV rights market and the timing of Rugby World Cup cause us.

“And, although I believe that message now has been taken on board, we are still faced with a major cost-cutting programme across all areas of the business.”

The SRU will be hoping for voluntary redundancies and early retirement, although salaries for those staying will be frozen for a year.

The SRU have promised to offer financial assistance to those made redundant to help find new work.

The SRU currently employ about 220 full-time staff (including players and management in the professional teams).

Out of that total, some 110 are employed at Murrayfield and around the country in support roles. But the SRU have also promised to look at the costs of the pro teams north of the border.