CEO Report 2010
Andrew Flexman
Unfortunately, 2009 was not one to remember on the serious injury front. We had five serious spinal injuries and one serious head injury during the course of the club season and in two cases these young men will never walk again. In the latter case the player suffered permanent brain damage. We continue to work very closely with these young men through the early stages of their rehabilitation. We were again involved in a number of very successful fundraising events such as our Annual Luncheon, an inaugural Race Day at Ellerslie and the Kindred Clubs luncheons and golf days. These are important events for the Foundation as they serve to reinforce our values of fellowship, camaraderie, compassion and togetherness. It was another very successful year for www.no8.co.nz the Foundations online supporter’s brand. We now have a combined membership of just fewer than 10,000 which has provided opportunities around Administrative Update: The Foundation will continue to be based at Alexandra Park for the foreseeable future. The Eden Park Trust Board has been unable to accommodate us in the redeveloped South Stand and in any event the rental costs may have been prohibitive. We have an extremely good setup at Sport Auckland House and it is more than adequate for our current needs. We are also fortunate to have excellent PA andaccountancy support from within Sport Auckland. We currently have 9 Trustees on our Board. It was recently moved by the Board to appoint some new Trustees. The rationale for this was to give us more regional presence and to ensure that we are planning for the future. To that end, we are pleased to advise that the Board will be proposing a motion that John Leslie and David Latta be appointed Rugby Foundation Board members. Financials: We enjoyed a very strong 2009 financial year. The surplus recorded for the year was $143,612 this compares to a $262,657 loss in 2008. Revenue for the year was $929,827, an increase of approximately $230,000 on the previous financial year. The strong result can be largely attributed to increases in Community Trust funding, donations and sponsorship in kind. During the year, the Trustees agreed to refund a portion of the NZRU annual grant due to the tough financial environment in which the game was operating. Hence the annual grantis recorded at $230,000 versus the usual $250,000. Expenditure overall was substantially down on the 2008 financial year. Injured player grants were notably down on the previous year for two key reasons. Firstly, we adopted a cautious approach to grants given the uncertain financial times. Secondly, there was less demand from our injured players in Operating expenditure was higher than in 2008. This can largely be attributed to a substantial increase in depreciation and the recording of contra expenditure. Where we record contra revenue (sponsorship in kind) we also need to record contra expenditure (see financial note 15). We are very pleased at the health of our Balance Sheet. Some items to note are as follows: 1. We have substantial cash on hand. This was due to having banked monies from matured investments rather than reinvesting them in securities. It was the Board’s preference to place our money in government guaranteed banks given the economic volatility. We therefore have plenty of liquidity to allocate to the right securities as and when they become available in 2010. 2. Accounts receivable – Whilst we don’t make a habit of loaning to our injured players, we made an exception for two individuals last year. These were in situations of extreme hardship and both loans are being repaid under the terms of written agreements. 3. Current liabilities – These are more substantial than usual due to the fact we are holding $125,000 on Trust for one of our injured players. Benji Moimoi suffered a serious spinal injury in 2009 and 4. Overall, the value of our assets is $275,712 higher at the end of 2009 than what it was in at the end of 2008. Investment Portfolio: The Trustees undertook a comprehensive review of the investment portfolio in 2009. This was considered necessary in light of the global economic recession and the need to reevaluate the characteristics of the portfolio. A Statement of Investment Principles (SIPO) was drafted and ratified by the Board. It gives the Board the ability to consider investments in fixed interest, equities and property. There is a strong bias towards investment grade fixed interest securities. This reflects the Boards wish to position our securities further up the credit curve. We had $50,000 worth of Fletcher Building capital notes mature in March 2009. The money was placed on term deposit. We elected to sell down some of our 2010 St Laurence Property and Finance bonds (now Irongate Property Limited) due to mature in July this year. Each trade of 2010 bonds was matched by the purchase of 2011 bonds at a substantial discount. The discount will be amortised as income over the life of the investment. In selling down the 2010 bonds on the secondary market a small loss of $13,473 was made. Serious Injuries: As advised, 2009 was not a good year in terms of injuries. Of the six serious injuries that occurred all were in open play and occurred from Under 19 up to Premier level. The injuries occurred in the months of April, June and July. Traditionally serious injuries occur early in a new season, presumably, on account of lack of match fitness. The Rugby Foundation has been on hand to assist these young men through the beginnings of their rehabilitation. In every case significant progress is being made and we are confident that each and every one of our injured players will not let their injuries prevent them living fulfilled and happy lives. Examples of the remarkable courage shown by our injured players to date include: • A return to part time teaching at Te Kauwhata College after being discharged from the Auckland • Learning to write proficiently using the mouth instead of the hands: • Tramping up the Cables Valley and water skiing after being discharged from the Burwood Spinal Unit in October; • Returning to Dunedin Polytecnic and Waikato University respectively to continue or commence study for a tertiary qualification. • Recovering from a life threatening head knock and consequent brain hemorrhage followed by an emergency craniotomy. Injury Prevention and Safety: In conjunction with the NZRU we have looked closely at why we had a spike in injuries in 2009. We have concluded that it was a series of very sad coincidences. There didn’t appear to be any one facet of the game that caused the injuries and it is unlikely that kneejerk responses are the answer at this The Foundation continues to push for a lowering of the legal tackle line and a serious injury reporting system that captures more detailed information about exactly how injuries are occurring. It is very difficult to monitor trends and take appropriate remedial action unless all the key information is to hand. New Zealand Area Schools: Once again the Foundation was responsible for the selection and funding of the New Zealand Area Schools team in 2009. The team assembled in Auckland for approximately 8 nights in September and played two representative matches during the week. The first match was against the Harlequins Under 18 side and was lost 3 – 24. The second match was played against the Thames Valley Under 18 side and was lost 29 - 3. Whilst the results were not as good as we would have liked, the programme again provided a great opportunity for young men from remote rural locations in New Zealand to perform on the big stage. There was some definite talent to emerge from the group and the likelihood of 10 players returning to the side this year bodes well for some better results in 2010. Injured Player Initiatives: We continue to work very hard at adding to the quality of life of our injured players. As such, we work very hard at integrating our players into the rugby community. Planning is well underway to send another 25 injured players and their caregivers to the 2011 NZI Sevens in Wellington. Our injured players will also be represented at fundraising functions to be held in Wellington, Auckland and Christchurch this year. We are also planning on having our injured players actively involved in Rugby World Cup 2011 via the volunteers programme, billeting for the disabled community and match attendance. Sponsors and Partners: I would like to extend a big thanks to our sponsors for their support in 2009. Without your assistance we simply would not be in a position to meet our objectives. To Peter Wills of DB and Hayley Moore To Nick Tongue of Panasonic, Matt Wilkinson and Dave Taylor of Adidas, David Rhodes Robinson of Toyota, Jason Paris of TVNZ and Matt Hewetson of NZ Rugby World thank you for your various contributions that have helped us build no8.co.nz into a formidable NZ Rugby supporters club. I would also like to thank The Experience Group, Homecare NZ Limited, Netfinity and PDQ Print for the work they undertook during the course of the year. Board of Trustees and Staff Members: I would once again like to thank the Board for their ongoing commitment to the plight of seriouslyinjured players in NZ. Each and every one of our Board members are volunteers and do it simply to I would also like to thank Ben Sturmfels for his committed work as Marketing & Brand Manager for No8. Ben has been instrumental in the emergence of the brand over the last eight months. Finally, I wish to welcome John Leslie and David Latta to the Board; we are very fortunate to have people of their calibre wanting to continue the fine legacy the Foundation has established since 1986. Andrew Flexman Chief executive officer
2009 proved to be a very strong financial year for the Rugby Foundation in spite of the tough economic times. The combined effect of developing new revenue streams and a cautious approach to grants led to a $143,612 surplus for the year.
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