Chairman's Report - 2021 Annual General Meeting
Objectives of The Rugby Club Foundation
Following its transition to ‘not-for-profit’ status, the immediate or short-term objective of The Rugby Club Foundation (Foundation) has been to establish and implement the structures, procedures, protocols, and relationships which are required to achieve the primary and long-term objective of the Foundation and to assist generally in advancing the interests of Rugby.
The long-term objective of the Foundation is to maintain and to improve the Foundation’s financial position so as to generate sufficient funds annually in order to successfully and indefinitely fund its primary objective of encouraging the sport of Rugby in the State of New South Wales and elsewhere (Primary Object).
Significant events
At the General Meeting of the Foundation held on 22 October 2019 the Members passed two Ordinary Resolutions, one approving the surrender (to the Independent Liquor and Gaming Authority) of the club licence held by the Foundation in respect of its former Rugby Place premises, the other approving the sale of the eleven gaming machine entitlements attached to the club licence.
At that General Meeting, the Members also passed a Special Resolution adopting a new Constitution.
The passage of each of these resolutions constituted an appropriate and necessary step following the transition of the Foundation from ‘registered club’ status to ‘not-for-profit’ status which occurred at the General Meeting of Rugby Club Limited held on 14 June 2017.
The Foundation ceased to hold a club licence on 22 October 2020, thereby completing the aforementioned transition process.
Strategy for achieving the objectives
The principal strategies which the Foundation is continuing to formulate and implement include the following:
• Investing and managing the funds previously received from the sale of the Rugby Place premises in a manner which preserves the real value of capital, maximises the investment return on capital for an agreed level of risk, and ensures a reasonable level of investment return stability, in order to fund the pursuit of the Foundation’s objectives over the short and long terms.
• Maximising the benefits which can be secured from marketing and promotional opportunities attaching to the Foundation’s heritage and brand.
• Organising activities and events for the Members of the Foundation and supporters of Rugby in conjunction with pursuing the Primary Object.
• Applying those principal strategies to achieving the Foundation’s Primary Object, and its strategic vision of ‘Sharing the Spirit of the Game’.
Principal activities
In its capacity as a not-for-profit entity, the Foundation has during the course of the financial year ended 30 June 2021 been actively pursuing the Primary Object by supporting most levels of grassroots Rugby in New South Wales, including grade, suburban, country, women’s and junior Rugby and Rugby referees.
The Foundation’s activities generate the revenue which is applied in furtherance of the Primary Object, and the promotion and propagation of the game of Rugby generally.
‘Sharing the Spirit of the Game’
During the continuing COVID-19 pandemic, the Foundation continued to function as an independent Rugby entity operating outside the influence of any governing Rugby authorities. Although the pandemic has presented Rugby with one of its greatest challenges, the Foundation remains uniquely positioned to maintain its status as an important and resilient guardian of the game.
The grassroots Rugby community has continued to experience hardship during 2021. Many Rugby clubs are again unlikely to have generated any substantial revenue during both 2020 and 2021, yet would have again invested heavily in a season which was, in most instances, terminated in July 2021. Rugby competitions ceased, and community Rugby initiatives were curtailed. This disruption to revenue streams has confronted community Rugby with even greater financial pressures than it experienced during 2020.
Notwithstanding the foregoing, the Foundation has maintained The Rugby Club’s historical connection with and support of grassroots Rugby through pursuing the Primary Object.
Foundation Grants Program
The Foundation’s grant-making policy defines the principles which guide the annual grant-making decisions which are approved by the Board, and are notified to the grantees, in furtherance of the Primary Object. One key guiding principle governing the Foundation’s investment policy and grant-making policy and protocols is that the Foundation must endeavour to at least maintain its corpus in real terms, so that the net income derived from it during each financial year is available to be applied in perpetuity in furtherance of the Primary Object.
In furtherance of its strategic vision and the implementation of the Primary Object, the Foundation was both pleased and proud to announce that, during the financial year ended 30 June 2021, its Grants Program provided more than $450,000 in support of 26 grassroots Rugby endeavours across the State of New South Wales.
Indeed, since the inception of its Grants Program in 2017, the Foundation has now assisted 80 grassroots Rugby projects with grants totalling more than $1.25 million.
The Foundation’s financial support, and its intended benefits, has therefore provided a much-needed boost in all corners of the game. The beneficiaries of the Foundation’s 2020 – 2021 Grants Program have included the Central Coast Junior Development Program, a Mid North Coast Girls’ Sevens competition, referees’ development, first aid and safety resources, the NSW Junior Rugby Union State Championships, the NSW Country Junior Championships, and the Australian Schools Rugby Carnival.
For example, the Foundation paid the registrations for players competing at the NSW Country Junior Rugby Union Championships and the NSW Junior Rugby Union State Championships, thus relieving clubs and families of that financial burden.
The impact of the Foundation’s support has been widely appreciated within the community Rugby, with a number of programs being conducted this year that were held over from the 2019-2020 financial year due to the pandemic.
The media release relating to the Foundation’s 2021 Grants Program included the following statements.
Paula Ward, Chair of the Foundation’s Grants Committee said:
“This year, the largest amount of funding the Foundation has been able to generate to date has contributed directly to the development and implementation of a range of grassroots Rugby initiatives across the state.
“That is more than $450,000 providing opportunities for male and female players, coaches and officials of all ages, abilities, and levels of experience, in all formats of Rugby.
“The Members of the Foundation look forward to seeing the outcomes of these initiatives within the grassroots Rugby community.”
The positive feedback received from the grassroots Rugby community has reinforced the value of the Foundation’s approach to its Grants Program.
Mid North Coast Zone President Peter Gerathy said:
“We are thrilled that The Rugby Club Foundation has supported Rugby on the Mid North Coast.
“Thanks to their support of our new Girls Sevens’ initiative we estimate we have already gained 50-60 new Rugby players.”
Dan Andrews, Sydney South Rugby Referees Association Secretary, said the funding has led to substantial improvements within the refereeing sector. He said:
“On behalf of our committee and members, I would like to express our sincere gratitude for the generosity of The Rugby Club Foundation to help in the purchasing of referee communication equipment.
“This equipment will help to educate, coach and develop the next generation of referees. Their ongoing support of referees in general and, through that, Junior Rugby in Sydney is greatly appreciated.”
Tim Richards, Executive Director of NSW Suburban Rugby, stated:
“Subbies has been able roll out an unprecedented multi-year, three-pronged suite of education initiatives covering match officials, coaches and administrators.
“The immediate on and off field benefits have been felt throughout the Subbies community and the Union expresses its sincere gratitude to The Rugby Club Foundation for its continued support.”
As Foundation Chairman, I said:
“The Rugby Club Foundation is committed to increasing its financial support of grassroots Rugby as the primary component of its strategic vision of ‘Sharing the Spirit of the Game’.
“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 again thank all Directors of the Foundation, 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 they bring to fulfilling their significant role in strengthening Rugby at the grassroots community level.”
NSW Rugby Union Development Officer Program
As a major benefactor of community Rugby, the Foundation has extended its partnership with the NSW Rugby Union by continuing to directly support NSW Rugby’s development programs and enhance the growth of the game across the State of New South Wales.
The NSW Rugby Union has assured the Foundation that its support will allow the NSW Rugby Union to employ additional Development Officers in regional and metropolitan areas, thus ensuring that NSW Rugby will have 100% coverage across New South Wales, and that their staff will spend more time engaging with and supporting the Rugby community. The aim is to convert this higher level of engagement to greater participation in the game. The NSW Rugby Union has advised that whilst it was hoped to have all of these additional appointments in place by now, the Public Health Orders across New South Wales have precluded this from occurring, it is envisaged that, once restrictions ease later this year, these appointments will be made in time to support the 2022 competition.
When reiterating the statement made in the preceding paragraph, Tony Crawford, Chairman of the NSW Rugby Union, conveyed the following comments to the Board of the Foundation:
“The Rugby Club Foundation’s funding has had a multiplier effect with NSW Country Rugby, the NSW Positive Rugby Foundation and NSW Rugby Union all financially contributing in development staff resulting in higher levels of investment in community and grassroots programs.
We note that NSWRU is just one of the recipients of the TRCF’s generosity which saw over $450,000 spent in 2021 across 26 programs, many of which support of a range of NSW based affiliates, clubs, zones, and organisations. All of whom do wonderful work in the rugby Community. These funds assist these groups individually but also contribute to our goal of growing the game of rugby in NSW and for this we are most grateful.
NSW Rugby Union also acknowledges that the last two COVID interrupted years have been particularly difficult and The Rugby Club Foundation’s flexibility and understanding across all projects that have not necessarily gone ahead as planned is appreciated and has not gone unnoticed.”
Paul Doorn, NSW Rugby Union Chief Executive Officer, also expressed NSW Rugby’s gratitude to the Foundation for their ongoing support when he stated:
“We have seen our programs right across the State grow and benefit from The Rugby Club Foundation’s support. Their continued investment in the game will ensure that we are able to continue to best support community rugby in New South Wales, and reach communities across the State, in both metropolitan and regional areas” Doorn said.
“The Foundation’s vision of ‘Sharing the Spirit of the Game’ defines the significant role it continues to play in spreading and strengthening the influence of the game in our State and around the country.”
Paula Ward, Chair of the Foundation’s Grants Committee said:
“The Rugby Club Foundation has a continuing passion and commitment directed at strengthening Rugby at the grassroots community level. We are delighted to be able to continue to work with the NSW Rugby Union on our shared goals over the coming 12 months.”
As Foundation Chairman, I said:
“The Rugby Club Foundation is committed to increasing its financial support of grassroots Rugby as the primary component of its strategic vision of ‘Sharing the Spirit of the Game’.
“Development officers remain at the frontline of delivering programs that introduce, encourage and improve the skills of participants at this level of Rugby. By continuing to support NSW Rugby’s development officer program the Foundation is making an essential and measurable contribution to Rugby growing to its maximum potential, and prioritising the health and wellbeing of the Rugby community and, more specifically, the grass roots level of the game.”
The Foundation can therefore look forward to watching these Development Officers ‘share the spirit of the game’ in their respective regions by inspiring and assisting players, coaches, match officials, club volunteers and all those new to the game.
Strategic planning
The Board is continuing to develop and implement a strategic plan encapsulating objectives and policies which will provide greater benefits for the Foundation, its Members and Rugby in general. The Board recognises that this strategic plan must be formulated and implemented in a way which also benefits the strong and supportive membership base which is so essential to achieving optimum outcomes in respect of the Primary Object
As I have previously advised, the strategic plan encapsulates two key interactive components, namely:
(a) the Community Hub through which the Foundation can function as a central and pivotal platform for the long-term sustainability and success of community Rugby, through providing strategic direction, advice, and access to resources, so as to support the development of grassroots Rugby; and
(b) the Commercial Arm through which the Foundation can increase revenue by leveraging its brand and intellectual property, thereby strengthening its financial balance sheet, and allowing increased investment in the game.
The Board believes that by developing these strategic initiatives in collaboration with the administrators of the game, it will be better positioned to establish the strategies and programs which it is seeking to implement for the benefit of grassroots Rugby and the wider Rugby community.
Through this collaborative approach, the Foundation and the NSW Rugby Union are developing a suite of digital resources to assist with the operation of grassroots Rugby Clubs. This program will enable club volunteers to more easily and rapidly access a variety of resources covering all facets of administering a grassroots Rugby Club, thereby making the performance of their tasks easier, and improving the experience for all participants. Phase one of the program is on track to be launched in early 2022 in time for the commencement of the new Rugby season.
The Board is particularly grateful to Stuart Dickinson and Lisa Kane for the sterling work which they are performing in relation to the ‘Community Hub’, and to Peter Whittington for his endeavours to develop a sustainable ‘Commercial Arm’ of the Foundation.
Future aspirations
Due to the astute leadership of our Treasurer, Stirling Mortlock, ably supported as he is by our Deputy Chairman, Peter Whittington, the Foundation’s financial investments continue to be prudently managed, and the Board is confident that similar levels of funding for grassroots Rugby will be maintained in the short to medium term on an annual basis.
Although it has indeed been difficult to observe our game fight for financial sustainability and navigate an uncertain future, grassroots Rugby has survived and there is no doubting that it will be restored to its rightful position within the sporting world. Furthermore, the Foundation is well positioned to promote its strategic vision of ‘Sharing the Spirit of the Game’ with a continuing passion and commitment directed at supporting the grassroots Rugby community in its emergence from the crisis which it has experienced during the past two Rugby seasons.
The ongoing support of the Foundation and its Members therefore remains a cornerstone of the future nurturing of the game. Recognising that the Members play an invaluable role in pursuing the Foundation’s strategic vision, and achieving positive outcomes for the game in general, the Board is endeavouring to create and enhance membership benefits.
The continuing loyalty of its Members is essential to the Foundation attaining those positive outcomes. Whilst recognising that there are numerous examples of longstanding loyalty amongst our Members, Lisa Kane has informed me whilst compiling the registration sheet for today’s meeting, she noted that, Giles Woodgate, one of our Members present with us today, is recorded as having joined the Club on 29 November 1983; and so Giles, we wish you a happy 38th anniversary of your membership of The Rugby Club.
Board of Directors
I feel humble and privileged to lead an enthusiastic and talented Board of Directors which currently comprises the following persons:
Deputy Chairperson: Peter Whittington
Treasurer: Stirling Mortlock AM
General Directors: Robert Bradley AM
Stuart Dickinson
Owen Finegan
Adam Freier
James Maxwell
Paula Ward
I sincerely express my personal gratitude to and admiration for our Deputy Chairman Peter Whittington, our Treasurer Stirling Mortlock, and all other Directors for their unwavering integrity, diligence, and professionalism. It is your desire to nurture the game which you each love and respect so much, and your devotion to fulfilling your role as Directors in an exemplary fashion, which ensures that the Foundation occupies the secure and esteemed position which it currently occupies within the Rugby community.
Business Operations Manager
Through her extensive Rugby experience and insight, and the respect which is so deservedly accorded to her within the community level of Rugby, Lisa Kane fulfils a special and indispensable role in supporting the Board in implementing the Foundation’s strategic vision of ‘Sharing the Spirit of the Game’.
I know that Lisa has been as frustrated as any of us by the manner in which the COVID-19 pandemic has curtailed the Rugby related events which she so enthusiastically and skilfully organises throughout a normal Rugby season. I can assure all Members that when normality returns to the game in 2022, Lisa will be doing everything possible to promote the level of membership participation and interaction which has been so sadly absent during the past two years.
On behalf of the Board and the Members, I sincerely thank Lisa for the magnificent service which she continues to provide as the Foundation’s Business Operations Manager.
Professional advisers
I echo Stirling Mortlock’s gratitude to John King of Prolegis Lawyers for the advice and guidance which he continues to provide in ensuring that the Foundation complies with its ‘not-for-profit’ status and incidental tax obligations.
I thank Chris Allen and his audit team at Boroughs Assurance for providing the level of professionalism and experience which is so essentially supports the future objectives and activities of the Foundation.
I also thank Denis Cheetham for discharging his duties as the Foundation’s independent accountant with the level of integrity, acumen, and efficiency which is crucial to the day-to-day operations of the Foundation.
Conclusion
Finally, I again express the Board’s gratitude to all Members for your ongoing support of the Board’s strategic initiatives, your continuing loyalty to this Foundation and to Rugby in general, and your invaluable contribution to fulfilling the Foundation’s mission of ‘Sharing the Spirit of the Game’.