HRFC Strategic Review

Presentation of Findings

Monday 27th May 2013

AGM

Contents

Process

Financial (Quantitative) Analysis

SWOT (Qualitative) Analysis

Findings

Committee Response

Vision, Values, Strategy, Mission

Five Year Road Map

Next Steps

Process

Analysed the last 5 years accounts & 99-02, and compared averages of these periods for major trends

Held 121s with 11 senior club people on Strengths, Weaknesses, Opportunities, Threats

Analysed 28 Responses to on-line survey

Spoken to representatives from:

Lismore (Visited)

Preston Lodge

Selkirk (Visited)

Reviewed and agreed findings with committee

Agreed Strategic Plan

Started 2013/14 Plan, Structure & Responsibilities

Major Trend Analysis (1)

Income is down 33% in 5 years

Bar is down by more than 50% in 10years. (61%-27%*), as a slight counter margins have improved (30%-40%)

The number of senior & associate members is down by 17% and 43% in 10years

General Entertainments down by 90% in 10years (10%-1%)

Donations, Insurance Claims & Gift Aid are up more than 60%. (13%- 21%) None of this can be relied upon

Coaching & Rugby Development is now our biggest single cost, up 87% (8%-15%)

*Figures in brackets are as a % of income or costs

Major Trend Analysis (2)

Spend on Rugby up almost 50% (24%- 33%*) & we play less games. Cost per game up >100% (£388 - £818)

Without a Ball, Sevens, Christmas Raffle, Summer School & a 3rds, we lose money

Costs are at same level as 1999!

Energy costs are up 100% in 10y & are likely to do more than that again

Cash reserves down 36% (£59k- £38k (Est)) in 3years

Jack Peat’s legacy down c33% (£50k - £33k (est) with only some gym equipment to show for it .

*Figures marked are as a % of income or costs

Major Trend Analysis (3)

Bar Sales SRU MembershipSponsorship Entertainments Donations Payments by Players

Gate Belhaven Discount

Lets Programme Advertising

Pool Table

Other International Tickets

Merchandise

Sevens (Net) Bank Interest Total IncomeInsurance Claim Player Spon-

sorshipFundraising Dinner

Fundraising Ball Capital Grant RafflesYouth Coach Funding

100 Club Christmas Raffle

Tour Income Gift Aid Tax Scheme

3000 Challenge

Border League

Bar Sales Membership Gift Aid Tax SchemeSRU International Tickets Insurance ClaimSummer School/Minis Sponsorship GateLets 100 Club Capital GrantEntertainments Donations Sevens (Net)Player Sponsorship Programme Advertis-

ingOther

Tour Income Christmas Raffle Bank InterestMerchandise Pool Table Payments by PlayersFundraising Dinner Fundraising Ball Belhaven DiscountRaffles Youth Coach Funding 3000 ChallengeBorder League

1999 2012

Major Trend Analysis (4)

1 2 3 4 5£0

£20,000

£40,000

£60,000

£80,000

£100,000

£120,000

£140,000

£160,000

£180,000

Series1

LAST FIVE YEARS INCOME

Initial Findings of Trend Analysis

We have squeezed costs, except rugby

We have not driven revenue

This is not sustainable

Best case if nothing changes, no cash in five years

Most likely case, no cash in less than three years

A Sobering Thought

"To that end, at the instigation of one of our committee members, Iain Maddox, a Business Development Board is being created whose aim is to enhance the size of the legacy, with the aim of generating enough finance to enable Haddington Rugby Football Club to establish itself as a Premier 1 Club. With this and hopefully a good year financially during our Centenary Year, the long term future of the club looks secure"

AGM 2010

We have a great history

Made by a host of great people on and off the pitch

Many of whom are in the Great Clubhouse in the Sky

We owe it to them to continue making this great history

There is no “Do Nothing Option”Do we all agree?

Meetings with Other Clubs (1)

Lismore Gone down the Charitable & Multi-Sports route

Their Clubhouse has broken even without rugby

Lots of use being made of it, by many groups

Much to gain in terms of gift aid, sponsoring and funding

Worthy of a separate study

Meetings with Other Clubs (2)

Preston Lodge Sold Club and kept proceeds in a Bond to produce income

Community Centre did not work, Goth did until recession

Slashed rugby budget and were relegated twice

Now looking at getting own club again

Done all they can to cut costs, lots of similar stories

Strongly advise retaining club

Meetings with Other Clubs (3)

Selkirk Town of same size, but in National League

Benefitted from Insurance to rebuild clubhouse

Raised £75k of their own for rebuild

Open licence with heavy use of Clubhouse

Sevens earns them around £15k

Approach to playing budget similar to us

Lots of good communications examples

Can hold a wedding and a rugby match at the same time

Good model for us to aspire to

Strongly advise having separate bars

SWOT Analysis (1)Top Three:1. History2. Place in the

town3. Youth set-up

STRENGTHSA small group of individuals prepared to work hardClubhouse, Pitch, Training Facilites and KitKitchenHistoryTown (our standing, warmth to us , small businesses, growing wealth)Minis as a nurseryYouth Set up including DOWe have a lot of goodwillPlaying NumbersGood Functional Web-siteSummer ScheolWhen we get events right we get good supportGood age spread in senior teamsAmbition to keep playing at the highest level

SWOT Analysis (2)Top Three:1. No Clear Plan2. Communications3. Fabric of Club

WEAKNESSESApathyNot doing what we said we would doNot enough business experience on CommitteeToo much being borne by too fewClubhouse is underinvestedNo budgeting/business planning processNot enough focus on coach education/Quality of coaches in minis.Mini/Midis not fully integrated with ClubDo not look after our donors (money and time) well enoughEntrance to the ClubNot in control of our legal/compliance issuesHave devalued/misunderstood Secretary role. Should be company secretaryNot using the SRU well enoughNot enough clarity of responsibility and accountabilityCommunication (internal & external)

Nothing Written DownDabblingUnder-selling ourselvesPromoting the Club as a VenueNot tapping into fundsContacts DatabaseTreatment of RefereesNot segmenting our marketsNot female and family friendly enoughOver state negativesNo Clear DirectionNot enough focus on youth and juniorsInability to maintain players in transition to senior rugbyHow the Club is viewed by the people of HaddingtonPoor pitchPoor first impressions on entrance to ClubToo many changes in coachingLack of LeadershipIncreasing player mobility: how do we build loyalty?

“over stating the negatives”!

SWOT Analysis (3)Top Three:1. Clear Plan2. Greater use of Club3. Increased Community Links

OPPORTUNITIESWorking more Closely with East Lothian Clubs (Fixtures, 7s, Playershare)

Engaging more with the town, and other clubs

Far greater use of the Clubhouse/lack of competition

Harnessing the minis >100 Parents we are not tapping

Direct Debit for Membership

Commonwealth Games

Multi-use of Marquee say in the Festival

Re-Engaging with the farming community

Maximising the "School of Rugby"

Hugely improving our PR

Emphasising the Importance of the minis

Phased development of Clubhouse

Capitalise on School of Rugby

Create "Café" downstairs

Small scale spruce up would bring quick wins

Segmenting our markets

increasung thanks

Reinstating Discos with strong controls

Café Club for U18s

Segmenting Minis: Creche and Rugby!

Becoming more family friendly

Becoming more female friendly

Growth of Town

Newsletters

Looking the Part

Improving Layout of Club, especially entrance

Returning Players

Single point for coach education

Focus on big events

Building on the recovery in our rugby delivery

Becoming a community sports hub

“Potential to be Great”

SWOT Analysis (4)Top Three:1. Loss of league Status2. Loss of Donations/Gift Aid3. Lack of good people

THREATS

Loss of Gift Aid

Loss of National Rugby Position

Breach of Championship Rules

Reduction in Donations

Food Hygiene

Licence Breach

Undeclared Income

Loss of key individuals (off and on field)

Apathy continues

Are there any othe unknown risks (underinsured, licences etc)

Externals: Economy; Game as a whole

Loss of Top East Lothian Club Status

Ageing supporters

Losing home grown strength

Not finding enough good people

Not enough refs and coaches for minis

Driving Away our less able players then losing strength in depth

Key Issues

Having a clear plan and lines of responsibility

Developing a sustainable income

Engaging with the Community

Improving Communications Internally & Externally

Improving linkages with all parts of the Club

Improving the layout and condition of the Club

Developing good coaches throughout the Club

Getting enough good people to deliver

Committee Response

Developed Strategy Endorsed Review Findings

Set out our Vision, Values and Mission

Developed Five Year Plan

Developed Structure to Deliver Strategy

Vision, Values, Strategy, Mission (1)

VISION

“To build a business which sustains our Club in the National League or higher, fostering the fellowship of rugby union and engaging with all parts of the community, building on the legacy of our great history”

Vision, Values, Strategy, Mission (2)

Vision supported by Values

OUR VALUES

At Haddington Rugby Football Club we value:

Our long history and our duty to maintain and develop it

Our goodstanding in the community

Our responsibility to foster the game of rugby football

Our position as a leading club in Scottish Rugby

Our reputation for hard, fair, and entertaining play

Our pride in the jersey

Vision, Values, Strategy, Mission (3)

STRATEGY

Fully implementing the Rugby Review of 2012 to reach & maintain National League Status

Refurbishing & developing our clubhouse to allow full use of it for a varied range of player, club & fundraising activities

Increasing the number of people using the Club by engaging with all parts of the Club & the Community

Increasing the number of games played, our prime function, to foster the game of rugby & maximise rugby income

Developing programmes of events to suit the needs & wishes of the wide and varied customers we will have

Vision, Values, Strategy, Mission (4)

MISSION

At the end of 2017-2018, HRFC:

Will be self-sustaining

Will be secure in the National League

Will have a fully refurbished and extended clubhouse

Will be fully integrated into the Community

Will have the optimum ownership model for our business

Will have the resilience to maintain this

HRFC Five Year Road Map

Next Steps

Thoughts from the Floor

Motions to adapt constitution to deliver

Election of Committee

Adoption of Plan by new Committee

More help for the Committee

Delivering the Plan

Key Challenges

Need to strive for success

Do what we say we are going to do

“Not what can HRFC do for me, but what can I do for HRFC”

A bit more of this!

Thank You

Thoughts Please