FOLLOWING
Saturday's
blog post, and in particular the bit about the club bar which I
posted, I got the following response from that well-nown man about
West Region Rugby, Paul Justice.
Paul
wrote:
“I'm
going to take issue with two points you raise:
- Match of the day will be in West Region, but it's going to be taking place at The Bearyards - Glens v Endrick is going to be a cracker
- Why the fascination with rugby clubs and bars - there's a reason why so many pubs across the country are closing - they're bloody difficult to make a return on them. The professionals who do it for a living are squealling, yet you (and the folks at Murrayfield) expect volunteers to be able to make it work
Plenty of Clubs who run bars will probably invest more in time and finance keeping it going than they do on the playing side.
It's time for Clubs and the Union to ask themselves about the viability of their bar - the first question that should be posed to Clubs at the Unions Bar Best Practice workshops should be something like - why are you wanting to run a bar, and how much resource are you willing to burn through to make it happen (in a similar fashion to the questions that should be raised about pro rugby)?”
Paul
also posted that response on my Facebook page, which brought forth
this response from former Kilmarnock and Cumnock scrum-half wee Jock
Munro, now more involved in curling down in Stranraer. Jock said:
“Paul,
did you ever play rugby? Did you ever buy your opponents two 8 pint
jugs of beer after the game and have it reciprocated? If you think
club rugby doesn’t need a bar then you need to go and watch my
level of rugby.
I
can assure you everything I have ever done with rugby involves
copious amounts of alcohol, whether it be formerly playing to the age
of 38, or watching any of my former clubs, or watching my son play or
going to Dublin and Paris, neither of which I have missed in 40
years.
Rugby
is a wonderful sociable sport at every level. Bars are synonymous
with the sport and if that were to change then it’s all over as far
as I am concerned. Ok I totally understand the fitness and
professional thing, where alcohol should not be an important factor.
But
that is only a few years of your life. We took £18000 over the rugby
club bar in one day recently with all volunteer staff. There is
plenty of profit in this for the club finances for sure. Our club has
functions on every Saturday night with busy bars providing much
needed profit to run the club.”
To
which Paul replied:
“No
problem with us having access to copious amounts of alcohol after a
game, but I'm querying why it should be supplied via a bar that is
run by a rugby club.
In West League 1 & 2 this season, we've got 12 team leagues - that's 11 home games - copious amounts of alcohol for 11 home game, plus maybe a couple of friendlies.
I'm willing to bet, that if each rugby club supplied a true set of accounts about their bar operation, the majority would be shown to run at a loss (even before accounting for volunteers time), so my question is can Rugby Clubs justify underwriting the cost of running a bar for 52 weeks of the year and 7 days a week?
To come to the justification they have to believe they can turn a profit in excess of the amount of volunteer time it takes to make it happen - my personal experience of running a rugby club bar, and speaking to many other committee people who have, is that the majority of us shouldn't be trying to run a bar on a full time or significant part-time basis.
Not only do we have to worry about:
In West League 1 & 2 this season, we've got 12 team leagues - that's 11 home games - copious amounts of alcohol for 11 home game, plus maybe a couple of friendlies.
I'm willing to bet, that if each rugby club supplied a true set of accounts about their bar operation, the majority would be shown to run at a loss (even before accounting for volunteers time), so my question is can Rugby Clubs justify underwriting the cost of running a bar for 52 weeks of the year and 7 days a week?
To come to the justification they have to believe they can turn a profit in excess of the amount of volunteer time it takes to make it happen - my personal experience of running a rugby club bar, and speaking to many other committee people who have, is that the majority of us shouldn't be trying to run a bar on a full time or significant part-time basis.
Not only do we have to worry about:
- paying for the stock-taker
- the sky subscription
- the BT sport subscription
- the Premier sports subscription
- the PPL license
- the mandatory training for all staff (including volunteers)
- the personal license holder training
- staff wages
- gas & electricity, rates, etc.
We
also have to consider the other things like:
- do we set up an overdraft with the bank and whose signature goes on it
- who goes to the Council meeting when the license is up for renewal and puts themselves in the firing line when you get various questions about things like allowing kids on the premises
- who meets the license standards officer and environmental health when they come do their inspections
- who apologies to the private party who booked the function hall for 7pm, yet the drinking games are still going on
- or maybe you've got that private function that's been in the diary for a year, yet you now have a re-arranged game to also accommodate, so the players can't access to the bar, etc. etc.
- Oh and by the way, the majority of players don't drink after a game cause they don't drink & drive.
Rugby Clubs running a bar isn't going to get any easier, the Scottish Government sees alcohol as a major public health issue - so at some point there will be a discussion about squaring the relationship between a public health good (playing sport) with a public health bad (consuming loads of alcohol).”
Some
potentially vexing questions to be answered there, undoubtedly,
running a bar does not get easier, standards are being tightened-up
across Scotland, as the war on our nation's strange relationship with
the demon drink goes on.
Clearly,
clubs need to be more pro-active and inventive in finding ways to
maximise revenue and have their bars ticking over – without losing
that unique rugby club environment.
I
remember, more than 30-years ago, being amazed to find a rugby club
in Canada where the clubhouse was a focal point in the life of that
particular suburb of Edmonton – a ladies fitness class was
something I could not, back then, ever see happening in a Scottish
rugby club. Today, such classes happen, often.
But,
this debate will, I am sure, continue for a while yet. And thanks
again to Paul Justice for raising this issue. The floor is now open,
gentlemen.
Pegj as always raises very good points. I think on a previous forum he made vigorous points about 4G pitches and their cost benefit versus grass pitches.
ReplyDeleteAnyway on the bar front it is becoming increasing difficult to make money from a club bar. This reflects changes in the bar trade generally and clubs aren’t immune from that.
For some clubs it is still a major source of income. We make in excess of £12k profit on our bar and would struggle to replace that income stream.
To more specific comments
The legal framework in onerous and is very dependent on what the status of the club bar is. If it’s a registered members club bar licence then you are restricted in the number of external functions you can do (approx one per month).
If clubs with this licence are playing fast and loose with getting occasional licences or claiming they are all club functions, they are breaking the law as in a criminal offence. Which committee member is going to cop for that?
If you are operating as a limited company then rates and other taxes come into play as well as more onerous regulation like personal licence and premises manager. Some clubs can use the small business tax relief system to gain relief from rates. - so it’s not all negative.
If the club is incorporated and has charitable status there are additional complications as charities can’t operate bars.
The example you shared from Facebook is startling. I would like to know what this event was.
A quick calculation would say that’s £1384 per hours over a 12 noon to 1am licence period. That equates to £23 per minute every minute for the 13 hours. If this is accurate, this club need to be given the highest possible awards and recognition from the bar trade! And all done by volunteers! I’m calling bullshit on this but happy to be corrected.
So it’s not straightforward and certainly isn’t the money maker it was back in the day.
Bar, or no bar? Horses for courses.....!
ReplyDeleteSome vibrant clubhouses operate 7 days per week, providing social & other facilities for the community, including affiliated (sport or non-sport) organisations.
Where clubs have adopted charitable status (or indeed may have decided to retain CASC status) and at the same time undertake certain otherwise outlawed commercial activities, it is normal / necessary for such trading to take place under the auspices of a wholly-owned commercial trading subsidiary company. This is a relative common structural model that remains onside with HMRC, which carries with it a variety of fiscal & financial advantages.
Happy to advise on this, should any clubs or representatives of clubs seek further information or guidance.
Pretty much what I said with more clarity and brevity :-)
DeleteThis comment has been removed by the author.
DeleteYep - the last thing hard-pressed clubs need is HMRC or OSCR coming down on them like a ton of bricks!
DeleteHard enough surviving, far less turning a surplus, under a self-serving "elite performance"-obsessed Governing Body like ours.....
An interesting article in today's Scotsman on the employment status of S6 players, an absolute minefield in the opinion of an expert in the field https://www.scotsman.com/news/opinion/robert-holland-employed-or-not-that-is-the-question-1-4796620
ReplyDeleteLet’s take a show of hands.
DeleteHow many folks think the SRU have factored this into the S6 plans and contracts?
How many folks think the franchises have taken professional advice on employment matters?
Anytime you would like to raise your hands....