Dodson: We’ll bank £20m windfall
SCOTTISH rugby chiefs won’t spend a penny of a new £20million cash windfall until the full financial impact of the coronavirus crisis is known.
They have received their share of £120m that global private equity company CVC have ploughed into the Pro14 league in return for a 28-per-cent stake.
In these uncertain times, however, SRU chief executive Mark Dodson believes it is best to adopt a safety-first approach and keep the money banked until further notice.
‘We’re ring-fencing the whole lot,’ said Dodson. ‘It’s not going to be used for the professional game, or for BT Murrayfield expansion, or for grass roots.
‘As far as we’re concerned, this deal will not be touched. It’s safeguarded until we decide on how we’re going to deal with the whole pandemic issue and what impact it will have to our business, so it will be used in a sensible and sustainable way.
‘We’ve got to understand the new future. We’ve been expanding this business for the past ten years and now you are going to see a period of retrenchment. Nobody knows what sort of shape rugby — be it
grassroots, professional or international — will be in the future. We must find out what we need to spend our money on in relation to where we want to be when the pandemic subsides and use it appropriately. ‘This money helps. It’s not the cure, but it’s a massive help in terms of confidence and cash.’ Dodson said the SRU face losing at least £15m if the three planned Test matches against Argentina, Japan and New Zealand at BT Murrayfield in November are cancelled. The cash from CVC — who have also bought a stake in the top division in England — has come at a perfect time. And Dodson insisted he had left no stone unturned to ensure the deal done with the private equity company — with the money divided among the four professional teams in Scotland and Italy and the eight in Ireland and Wales — was a good one for Scottish rugby. ‘We have gone to tremendous lengths to make sure this deal has been endorsed,’ he said. ‘We have our own board and our own investment committee. We have also had Dickson Minto, a famous and respected financial house in Edinburgh, as an independent advisor to the board and investment committee. ‘We have also had advisors who have been working with the Celtic unions and the Pro14, so we have had various levels of oversight and all have concluded that this is a good deal. ‘CVC committed a significant amount of money to the league and the ambition is that everyone would earn more. The whole purpose of inviting an investor into the league is that it can supercharge revenues. The idea is that we can bring extra money into the league for everybody, them included, so our whole purpose is to make sure this is how we maintain Pro14’s growth That has been substantial but we believe this investment will be the key to unlocking even further growth. ‘As for our share, we get the first tranche of money almost immediately and the rest over a period of time. As for the total amount invested, the value is the same despite the coronavirus. ‘That has surprised people and, although we have come out of it with a slightly different shaped deal, the values are the same.’ Dodson also confirmed
Sportsmail’s exclusive story that the Pro14 league have plans to hold end-of-season play-offs in late August or early September. ‘It is one of the proposals we are looking at,’ he said. ‘Until we get absolute clarification from medical or government authorities when we are able to restart this season or the new season, we have a lot of options. ‘We have to be patient and do things in a sustainable way, so there are lots of scenarios.’