The Rugby Club Foundation and the COVID-19 Pandemic

As we all confronted the constantly evolving and unprecedented situation that was impacting our entire society, including the sporting world, the Board of The Rugby Club Foundation issued the following message on 23 April 2020 which was directed not only to the Members of the Foundation, but to the Rugby community at large.

Like all sports, Rugby has been severely impacted by the global shutdown which forced Rugby Australia and Australia’s State and Territory Member Unions to make some extremely difficult decisions to protect the long-term viability of our game.

The turbulence and uncertainty of attaching to the pandemic inevitably hit the community level of Rugby extremely hard. Announcements from Rugby Australia and the NSW Rugby Union delivered the news of staff stand downs and pay reductions so these organisations could weather the Coronavirus storm. The Rugby authorities were faced with decisions directed at reducing costs, because once Australia overcame this crisis, Rugby had to be ready to return and bring us all back together on the playing field, on the sidelines and in the grandstands.

In the midst of this crisis, The Rugby Club Foundation continued to function as a proudly independent organisation operating outside the remit of any governing Rugby authorities. Although this has arguably been one of the most unprecedented challenges Rugby has faced, the Foundation was in a unique position to embrace its standing as an important and resilient guardian of the game.

Our grassroots Rugby community has suffered enormously. Most clubs are unlikely to have generated any substantial revenue during the post-2019 off-season, yet would have invested heavily in their 2020 season which was, in most instances, delayed until mid-July. Competitions were suspended and all community Rugby initiatives were put on hold. This disruption to revenue streams has left Rugby clubs and organisations with facing more financial pressures than ever.

Throughout this global crisis, the Foundation has maintained The Rugby Club’s historical connection with and support of grassroots Rugby. More particularly, the Foundation has continued to focus on its primary object of encouraging all levels of grassroots Rugby in NSW and elsewhere at grade, suburban, country, women’s, junior and school levels.

The Foundation’s financial grants program has continued to provide significant support to these levels of Rugby. Paula Ward, Chair of the Board’s Grants Committee, will report on the funding, in excess of $350,000, which the Foundation has provided in support of programs encompassing all aspects of our game at the grassroots level – from strengthening referee and coach development, to increasing player and official participation, and supporting volunteers.

Whilst the COVID-19 pandemic has severely disrupted global financial markets, the Foundation’s investments continued to be prudently managed and the Board anticipates being able to maintain similar levels of funding for grassroots Rugby in the short to medium term on an annual basis.

Although the shape of the 2020 season may not have allowed us to participate in or watch Rugby in the usual manner, we asked our Foundation members and the broader Rugby community to continue to support our game at the grassroots level. Whether it be through becoming a member of a club, purchasing merchandise, or supporting your club’s sponsors, every bit helps. Your Foundation membership will be especially valued now more than ever.

As heartbreaking as it has been to watch our game fight for financial sustainability and navigate an uncertain future, we do know that grassroots Rugby has survived and will be restored to its rightful position within the sporting world. When that time comes, The Rugby Club Foundation will be pursuing its strategic objective of ‘Sharing the Spirit of the Game’ with a continuing passion and commitment directed at strengthening the grassroots Rugby community.

This has certainly been a challenging time for our game, and there is no doubting that it needs the support of the Foundation, its Members, and all Rugby supporters now more than ever.

Special Resolutions and Ordinary Resolutions – General Meeting – 22 October 2019

At the General Meeting held on 22 October 2019, the following resolutions were passed unanimously by the Members.

Firstly, an Ordinary Resolution whereby the Members approved:

(a) the surrender (to the Independent Liquor and Gaming Authority) of the club licence held by the Foundation in respect of its former premises located at Rugby Union House, Rugby Place off 31a Pitt Street, Sydney (the Former Premises); and

(b) for the purposes of section 21(4) of the Gaming Machines Act 2001 (NSW), the sale of the eleven (11) gaming machine entitlements attached to the club licence in respect of the Former Premises.

Secondly, a Special Resolution whereby the Members resolved that:

The Constitution of The Rugby Club Foundation Limited in the form presented to the meeting (and having previously been made available to Members) be adopted as the Constitution of The Rugby Club Foundation Limited in substitution for and to the exclusion of the existing Constitution.

By passing each of those resolutions, Members took an appropriate step following the transition of the Foundation from ‘registered club’ status to ‘not-for-profit’ foundation status which occurred at the General Meeting of Rugby Club Limited held on 14 June 2017.

Primary Object and ‘Sharing the Spirit of the Game’

Clause 2(a) of the new Constitution now provides that the Primary Object of the Foundation is:

“To encourage the sport of Rugby in the State of New South Wales and elsewhere at a grassroots level of Rugby”.

The specific reference to the ‘grassroots level of Rugby’ means that the revised Primary Object more accurately reflects the level of Rugby which the Rugby community regards as being essential to the survival and future development of the game and on which the Foundation is concentrating through its strategic vision of ‘Sharing the Spirit of the Game’.

The revision of the wording of the Primary Object of the Foundation did not alter the Foundation’s commitment to its principal purpose of encouraging the sport of Rugby at a grassroots level. Indeed, the revised wording should make that purpose even clearer to the Members and the Rugby community in general.

As it therefore followed that a definition of ‘grassroots level of Rugby’ should be included in the new Constitution, clause 1.1 defines ‘grassroots level of Rugby’ as follows:

“grassroots level of Rugby means the grassroots community levels of Rugby which are reasonably determined by the Board as being the appropriate beneficiaries of the Primary Object from time to time”.

In furtherance of its strategic vision of ‘Sharing the Spirit of the Game’, the Board is currently developing a 3-year strategic plan which is presently intended to encapsulate two interactive components.

Firstly, a Community Hub through which the Foundation will seek to become a central and pivotal platform for the long-term sustainability and success of community Rugby, by providing strategic direction, advice, and access to resources, to support the development of grassroots Rugby.

And secondly, a Commercial Arm through which the Foundation can grow revenue that can be added to strengthening its financial balance sheet, and will allow further investment in the game.

The Board acknowledges that the Members of the Foundation must be prioritised amongst the key Rugby stakeholders with whom it engages in relation to the future strategies and programs being implemented by the Foundation.

However, the Board also recognises that the Foundation must proactively engage with the wider Rugby community and with the administrators of the game, because all key Rugby stakeholders are genuinely interested in the objectives and activities being pursued by the Foundation. The Board remains confident that such interaction will positively influence the successful outcome of the strategies and programs which the Board is seeking to implement for the benefit of grassroots Rugby.

Foundation’s income tax status

As a consequence of the changes to its Constitution and its associated activities, the Foundation became entitled to self-assess its entitlement to income tax exempt status, with immediate effect from 14 June 2017.

Pursuant to the Ordinary Resolution passed by the Members on 22 October 2019, the Foundation has sold its eleven gaming machine entitlements, and has surrendered its club licence to Liquor and Gaming NSW, with effect from 22 October 2020.

The Foundation has thereby completed the transition of the Foundation from its former ‘registered club’ status to ‘not-for-profit’ foundation status.

Investment of the Foundation’s capital

The Board continues to ensure that the Foundation’s capital is appropriately and prudently invested so as to preserve that capital in real terms over time, and to provide a continuous and sustainable revenue stream, thus furthering the Primary Object in perpetuity.

The Foundation’s Investment Policy Statement therefore continues to be directed at maintaining the investment return on capital for an agreed level of risk in order to:

• Provide support for the strategic vision of the Foundation over the short and long terms;

• Provide preservation of the real value of capital; and

• Provide a reasonable level of real funding stability.

Mercer Investments (Australia) Limited will shortly complete the third year of its engagement as the Foundation’s investment adviser and fund manager.

As alluded to by Stirling Mortlock in his 2020 Treasurer’s Report, the Board’s Investment Committee is currently undertaking a benchmark review of its investment policy outcomes and Mercer’s performance.

Activities in furtherance of the Primary Object

In furtherance of its strategic vision of ‘Sharing the Spirit of the Game’, the Foundation has during 2020 actively encouraged the sport of Rugby throughout the State of New South Wales by providing financial support to the NSW Rugby Union and its affiliates.

By funding grassroots Rugby programs and supporting community Rugby across New South Wales the Foundation has supported the NSW Rugby Union’s Development Officer Program, assisted with referee development, created new competitions for women and colts aged players, enabled volunteers to access coaching and refereeing education courses and established programs aimed at maximising the level of enjoyment gained by all participants from their Rugby experience.

The Members of the Foundation play a key role in supporting grassroots Rugby by actively participating in Foundation events; albeit that our ability to conduct such events during 2020 has been curtailed by COVID-19. Once normalcy resumes, the promotion of interaction and good fellowship amongst players of, and persons interested in, the game will ensure that the Foundation is better equipped to achieve its Primary Object in a sustainable and measurable manner.

Grant-making Policy

The Foundation’s Constitution, and the relevant tax legislation, require the Board to make every reasonable endeavour to ensure that the Foundation applies its income and its assets solely in furtherance of the Primary Object.

The Foundation’s grant making policy encapsulates the principles which guide the annual grant-making commitments approved by the Board and notified to the grantees, in furtherance of the Primary Object.

One of those guiding principles is that the Foundation must endeavour to at least maintain its corpus in real terms, so that the net income derived from it each year is available to be applied in perpetuity in furtherance of the Primary Object. This principle should continue to guide the Foundation’s investment policy and the Foundation’s grant-making policy and protocols.

Financial Grants Programs

Notwithstanding these recent times of uncertainty for the Rugby community, the Foundation was pleased to announce that it had delivered a number of financial grants to grassroots Rugby projects across New South Wales during the 2019-2020 financial year.

Now in its third year of operation, the Foundation’s Grants Program contributes directly to the development and implementation of a range of grassroots Rugby initiatives across the state, providing opportunities for male and female players, coaches and officials of all ages, abilities and levels of experience.

Through its successful grants program, the Foundation is continuing to work closely with all its grant partners in expanding this program and delivering positive benefits and outcomes to grassroots Rugby in the future.

When announcing these financial grants, Paula Ward said:

“The Rugby Club Foundation is committed to increasing its financial support of grassroots Rugby as the Foundation grows and develops. This year we have delivered more than $328,000 in financial grants focused on enabling the delivery of programs to introduce newcomers to this great game and encourage skills development.

“This is the largest amount of funding the Foundation has been able to provide to date and in the current environment is immensely satisfying.”

At that time, I also stated as Chairman:

“Although the game of Rugby is currently facing unprecedented challenges, the Foundation is in a unique position to embrace its standing as an important and resilient guardian of the game.

“When the time comes for Rugby to resume, the Foundation will be pursuing its strategic objective of ‘Sharing the Spirit of the Game’ with a continuing passion and commitment directed at strengthening Rugby at the grassroots community level.

“By endorsing and continuing to support this strategic vision, the Members of the Foundation can feel both proud and well satisfied that they are continuing to play an integral role in achieving the beneficial outcomes promoted by the Foundation’s grants strategy.

“The Foundation is grateful to everyone who participated in this latest round of grants, and I congratulate the successful grant recipients. I also thank all Directors, and, more particularly, Paula Ward and her fellow Grants Committee members, Rob Bradley, Stuart Dickinson, Owen Finegan and James Maxwell, for the passion and dedication which they have exhibited in fulfilling their important role in furthering the interests of grassroots Rugby.”

I hereby reiterate the gratitude which I expressed to Paula and each member of her Grants Committee in that statement.

Sir Leslie Herron Rugby Scholarships

In 2004, the Board of Directors of The Rugby Club decided that there could be no more fitting way in which to demonstrate the Club's commitment to "grassroots Rugby" than to establish scholarships for the benefit of Junior Rugby participants.

The Board also concluded that there could be no more worthy person associated with those Rugby Scholarships than Sir Leslie Herron. Sir Leslie Herron's family graciously consented to the naming of the scholarships as The Sir Leslie Herron Rugby Scholarships.

Sir Leslie Herron

The Honourable Sir Leslie James Herron K.B.E., C.M.G., K.St.J. was born on 22 May 1902. Educated at Sydney Grammar School and at the University of Sydney, he graduated in Law in 1924 and was admitted to the Bar on 28 August 1925. He took Silk in 1939, pursuing a successful career in common law cases and as a leading advocate in jury trials. He was an acting Judge of the District Court of New South Wales for a time before being elevated to the Supreme Court Bench on 19 February 1941.

Leslie Herron was appointed Chief Justice of New South Wales on 25 October 1962.

On attaining his 70th birthday in 1972, he was obliged to resign his office as Chief Justice after a judicial tenure spanning 31 years. He continued as Lieutenant Governor and was Administrator of the State of New South Wales at the time of his death on 3 May 1973.

Leslie Herron was elected as the first President of The Rugby Club and held that office from 1945 to 1952 inclusive.

At various times, he held office as Chairman, or President, of the Australian and New South Wales Rugby Unions and he represented Australia on the International Rugby Board.

Awarding of Sir Leslie Herron Rugby Scholarships

From the outset, two Rugby Scholarships were awarded on an annual basis and the duration of each scholarship was two years. Each scholarship was named The Sir Leslie Herron Rugby Scholarship with one scholarship being awarded to a nominee of the Sydney Junior Rugby Union, and the other to a nominee of the New South Wales Country Junior Rugby Union.

The scholarships were awarded annually during the period 2004 to 2008 inclusive.

In 2020 the Board of the Foundation resolved that one of the ways we could continue to demonstrate the Foundation’s commitment to grassroots Rugby was to revive the Sir Leslie Herron Rugby Scholarships.

In consultation with the NSW Rugby Union, the Foundation’s Grants Committee reviewed a number of strong scholarship applications, and were pleased to announce that the recipients of the Sir Leslie Herron Rugby Scholarship in 2020 as being Ms Ally Bullman (the nominee of the Sydney Junior Rugby Union) and Mr Jayden Blake (the nominee of the NSW Country Junior Rugby Union)

In awarding them with their scholarships, the Foundation wished Ally and Jayden every possible success in furthering their Rugby aspirations while embracing the values of past scholarship recipients, namely citizenship, scholarship, and a contribution to Rugby.

The Rugby Club Foundation's Memorabilia

The Archives Management Agreement between the Foundation and Rugby Australia continues to ensure that the Foundation’s memorabilia collection is being properly stored and managed in accordance with the highest level of preservation practices, including conservation and disaster planning, and the ongoing maintenance of archives to ensure their survival and accessibility over time. This arrangement is also an important component in the preservation and promotion of the history and heritage of the sport of Rugby.

The Foundation Wall at Rugby Australia’s Moore Park headquarters continues to display items selected from amongst the Foundation’s memorabilia collection.

Furthermore, the Foundation continues to ‘Share the Spirit of the Game’ by contributing items from its historical memorabilia collection to various exhibitions in NSW and beyond.

These items are vital to the preservation of the game’s past, and by sharing them we offer members and supporters the chance to relive and celebrate important moments from the game’s history.

The Army Museum at Victoria Barracks in Paddington (NSW) has recently featured an exhibition relating to the 1919 AIF team, and the Foundation’s two William Watson jerseys have held pride of place in that exhibition.

The Australian Sports Museum in Melbourne, which opened in February 2020, features the 1899 programme from Australia’s first Test, while the SCG is displaying items from the 1899 first Test at the SCG, including a Test cap, whistle and programme.

Board of Directors

During the past twelve months, the Board of Directors has comprised the following persons:

President, now Chairman: Angus Bruxner

Vice President, now Deputy Chairman: Peter Whittington

Treasurer: Stirling Mortlock AM

General Directors: Robert Bradley AM

Stuart Dickinson

Owen Finegan

Adam Freier

James Maxwell

Paula Ward

I can assure the Members of the Foundation that the administration of the Foundation could not be in safer and more accomplished hands than those of my fellow Directors. I remain most grateful to our Deputy Chairman, Peter Whittington, our Treasurer Stirling Mortlock, and all other Directors, for their professional and conscientious service and for the loyalty and support which they each provide to me as Chairman of the Foundation.

The complex transition process, and the formulation and implementation of the Foundation’s strategic vision, could not have been achieved without the necessary standards of corporate governance and transparency being observed by the Board of Directors which I feel humble and privileged to lead as Chairman.

More particularly, each Director continues to observe the traditions and ideals upon which The Rugby Club was originally established in 1945.

It is pertinent to record the fact that 2020 marks the 75th anniversary of the incorporation of The Rugby Club on 29 August 1945. Although COVID-19 prevented the Foundation from celebrating this momentous event by holding a function this year, the Board intends convening an appropriate celebratory event in 2021.

I am indeed privileged to be part of a talented and passionate team which has only the best possible interests of the Foundation, its Members and Rugby at heart. All Directors are imbued with a common desire to pursue the objective of protecting and enhancing the heritage and reputation of The Rugby Club, whilst concurrently ensuring that the entity remains commercially viable for the benefit of current and future generations of Members and Rugby supporters in the ‘True Spirit of Rugby’.

Business Operations Manager

The Foundation welcomed Lisa Kane back from maternity leave in July of this year. The Board wishes to again acknowledge the exemplary service which Lisa has continued to provide as the Foundation’s Business Operations Manager. I know that anyone and everyone who deals with Lisa can attest to her attributes in fulfilling this role in the enthusiastic, loyal, and committed manner which she does.

At the time of her appointment, the Board was confident that Lisa’s Rugby experience would assist the Foundation in pursuing its strategic vision of ‘Sharing the Spirit of the Game’. Furthermore, the Board recognised that Lisa’s former association with NSW Rugby would ensure that, as the Foundation’s Business Operations Manager, she would continue to have a significant influence upon the community Rugby level of NSW Rugby.

During Lisa’s absence on maternity leave, Emilie Capes stepped into the role of Business Operations Manager. The Board records its gratitude to Emilie for having undertaken her duties in the professional and cheerful manner which she did between February and July of this year.

Professional advisers

I again express the Foundation’s gratitude to John King of Prolegis Lawyers and John Ralston of Pigott Stinson for their advice and guidance in steering the Foundation towards achieving its ‘not-for-profit’ foundation status.

The Board is grateful to Chris Allen of Boroughs Assurance for fulfilling his role as the Foundation’s Auditor. The professionalism and experience which Chris and his team have already exhibited in fulfilling the role of Auditor are essential to the future objectives and activities of the Foundation.

I also thank Denis Cheetham for acting as the Foundation’s independent accountant with his usual degree of professionalism, integrity, and efficiency. The manner in which Denis dispenses his duties is of immense benefit to the Finance and Investment Committee and to the entire Board.

Conclusion

Finally, I record the Board’s gratitude to the Members for their continuing support of the Board’s strategic initiatives, and for their continuing loyalty and commitment to Rugby and to this Foundation.

The Board asks all Members to not only maintain their financial membership of the Foundation, but to also participate proactively in its ongoing activities and development. I also ask that the Members maintain a level of confidence in the current and future Directors of the Foundation which will assist them in protecting and enhancing the legacy which is being established through the Foundation’s pursuit of its new Primary Object and its strategic vision of ‘Sharing the Spirit of the Game’.

The Treasurer’s and Grant Committee Chair’s Reports are available to Members via the Members Portal