Chairman’s Report - fusesport

Chairman's Report

The usual form for a Chairman's report is to give an outline of the year's highlights, express thanks and congratulations to our wonderful volunteers and clubs, and give a quick examination of the Union's finances. You will excuse me, particularly this year, if I concentrate on the latter.

In our case, the grant has been extinguished. We still receive fees for the rugby services we provide to NSW Rugby, and we do still get indirect financial support in the form of referee payments and office space, but no longer do we receive a cash grant. I am duty bound to report to you that this is not a situation that is going to improve in the short term. Whilst it was originally believed ? and publicised ? that the Community Rugby funding cuts would be short lived, I am afraid that has proved to be overly optimistic. We are certainly budgeting for at least another year without a grant from NSW Rugby.

Our Union has posted a substantial loss this year, amounting to approximately $93,000. This was not entirely unexpected. Just under half that loss can be attributed to the less than stellar performance of the Union's share portfolio. The remainder represents a loss from our operations ? our core business, if you like.

I wish to first address the Union's investment in the managed equity fund, Ausbil Dexia. If we look at this year in isolation, it has not performed well ? in fact, coming in just below the market average. In any case, it should not be assessed entirely on one year's results. Recent economic volatility has impacted on our share portfolio as it has with everyone, business and individual alike.The Board remains committed to its investment strategy, which has always been long term. We believe it to be a balanced approach with a large amount of cash invested at the bank, both on call and in fixed term deposits, in addition to the share portfolio. The Board is resolute in its expectation that in the long term this strategy will provide a greater return on investment than a simple term deposit.

That is not to say that the Board will not continue to review its investments, and be open to other opportunities. Uppermost in our minds is, of course, that we must always manage any investment risk in a prudent manner.

Our rugby operations ran at a loss for the first time since 2002. This can be mainly attributed to the abolition of our cash grant from NSW Rugby, although it should be said that we have also recorded reductions in income from sponsorships and team registrations. There have been no real significant increases in any of our normal operating expenditures.

It is no secret that NSW Rugby is in some financial distress. What may not be so clear however is the way in which Community Rugby in this state has had to bear the brunt of that. So let's spell it out: NSW Rugby affiliates ? Subbies, Country, Juniors and the Premiership Competition ? each have had their cash grants massively reduced. In total, nearly one quarter of a million dollars less per year is now flowing into Community Rugby.

So what does all this mean for Subbies clubs and players? Unfortunately, in short, higher fees. You should expect ? and budget for ? increases in affiliation fees, team registration fees, and fines. We will also be looking to cut our expenditures where we can do so without affecting services to clubs. The Board is mindful that our financial reserves, so carefully built up over the years, are ultimately there for the benefit of our member clubs. That does not mean that those reserves can completely shelter our clubs from economic reality.They are, however, most definitely cushioning the blow, for without those reserves much more substantial cost increases would have to be inflicted.

My final word on finance is more of a philosophical observation ? one that I hope is noted not only by Suburban Member Clubs, but also by administrators and management further up the rugby "food chain".The Waratahs, despite now being a separate corporate entity, do not exist in a vacuum. They do not exist purely for their own sake. They do not exist just to win a Super Rugby title. The Waratahs organisation has a duty to rugby throughout the state: a duty to promote the game, a duty to grow the game and, yes, a duty to finance the game. That has long been true. Let's be careful to make sure that truth is not forgotten as the gap between professional and community rugby threatens to become an abyss.

On a happier note, I warmly congratulate all the winning clubs and teams in 2011. Particular mention needs to be made of Woollahra Colleagues for their unprecedented haul of five premierships. The club has a celebrated history, with many triumphs and successful seasons, but surely none so glorious as 2011. Well done to the "Blue Giants".

I thank very much our volunteer Judiciary and Appeals Tribunal members and my fellow Board members; the Union's committed staff of Mark Green, Tim Richards and Lisa Kinny; and the hundreds of club volunteers who continue to show their passion for the game itself.

Paul Timmins Chairman

Office Bearers

Life Members: Phil Brown Brent Halligan Damian Henry Dan Moore Gary Patterson Ian Ross

Board Members: President: Michael Kennedy (Mosman) Chairman: Paul Timmins (Old Ignatians) Treasurer: Danny Hinton (Hills) (elected 14/3) Executive Director: Mark Green (Staff) Div 1 Rep: Geoff Granger (Drummoyne) Div 2 Rep: Alan Jones (Newport)

Div 3 Rep: Chris Moloney (Blue Mtns) Div 4 Rep: No representative Div 5/6 Rep: No representative Ordinary Members: Danny Hinton (Hills) (resigned 14/3) Rick Morris (Blacktown) John Morrison (UNSW) (apt 14/3) John Slender (Briars) Peter Whittington (King's Old Boys)

Judiciary: Mark Groom (Chairman) Tony Beger (Deputy Chairman) Pat Barrett Geoff Cramp Jim Melrose

Appeals Tribunal: Richard Harvey (Chairman) Paul Angus Phil Brown Dan Moore Jim Smith

Auditors: Hill, Rae & Embrey

Suburban Competition Manager: Tim Richards Premiership Competition Manager: Lisa Jane Kinny Juniors Competition Manager: Taleah Neowhouse Competition Administrator: Harry Morton Intern: Matthew Holding

Board Meeting Attendance

Geoff Granger

7/9 Rick Morris

8/9

Mark Green

9/9 John Morrison (appointed 14/3)

7/7

Danny Hinton

8/9 John Slender

8/9

Alan Jones

9/9 Paul Timmins

7/9

Michael Kennedy

9/9 Peter Whittington

6/9

Chris Moloney

9/9

Hunters Hill celebrate with the Barraclough Cup, the Reliance Shield and the Cowboy Cup.

Credit: HHRFC

Executive Director's Report

In my previous two annual reports I noted the retirement of long serving Board members, Ian Ross and Dan Moore. This year, another notable Board member has called it a day, with Rick Morris indicating he will not be seeking re-election at the AGM. Rick's association with the Union stretches back to 1993 with Canterbury RFC's inclusion in Suburban Rugby. During his time on the Suburban Board, Rick has been a member of the Union's busy Clubs, Competition and Rules Sub-Committee and was also Deputy Chairman of the Union's Judiciary for three years. Rick won this year's Service to Rugby Award and was also awarded the 2010 Blacktown Sports Administrator of the Year. Whilst Rick has resigned as a Board member, he has already declared his interest in remaining involved through the Judiciary and CCR subcommittee.The Union thanks you, Rick.

Sadly, the Union lost one of its stalwarts in January with the sudden passing of Peter Kelly. Peter was a life member of the Matraville-Chevalier Rugby Club and more recently was involved in the Beecroft Rugby Club, where his son, Tom, played. Peter was a long serving member of the Suburban Board where he served two terms. He was awarded the Australian Sports Medal in 2000 for his service to the game. In honour of Peter, the Union has named its Service to Rugby award after him. We were honoured to have Peter's widow, Kerry, and his family, attend our Presentation Night to present the inaugural Peter Kelly Medal for Service to Rugby. Fittingly, it went to Peter's friend and great rugby colleague, Rick Morris. Another highlight of the night was the Coach of the Year Award going to John Daniels and David Twomey, who both coached - and played in - the Blue Mountains Clark Cup premiership team.This was the club's first 1st grade premiership since 1976. Congratulations also to Leo Afeaki (Drummoyne) for winning the Kentwell Medal, and Petersham RFC for taking out the prestigious Suburban Rugby Club of the Year Award.

Petersham had some stiff competition in the Club of the Year race. On the field, Woollahra Colleagues were the stand-out club this year, winning the five senior Division One trophies on offer - the Kentwell, Burke, Whiddon, Judd and Sutherland Cups.This is a triumph unprecedented in Suburban Rugby's long history. The famous club also won the Bruce Graham Shield for Division One Club Champions and won the Division One Club of the Year Award. A truly remarkable achievement and the Union heartily congratulates Club President, Richard McGrath, and all of Colleagues' members and supporters on their amazing year. Hunters Hill dominated Division Two and

won the Barraclough Cup for first grade premiers and the Cowboy Cup for the inter-divisional club championship competition. (Their U85kg team proved the difference in a tight race with Petersham, who did not enter an U85kg team.) Hunters Hill have earned promotion to Division One, where they have not been since 2002. Petersham dominated DivisionThree and won three of the five grand finals they contested, including the Radford Cup Colts competition. Petersham also won the Doc Harris Shield for Club Champions and will now compete in Division Two. Congratulations to Brothers and Sydney Harlequins for their Fourth and Fifth Division Club Championships and their respective first grade premierships.

The Union forged ahead in its social media presence, with a spike in Facebook followers and the introduction ofTwitter ? which allows real time dissemination of results across the divisions.This technology is cost effective and an important avenue for communication with, and between, our Clubs. The Union launched a new website this year and we look forward to further improvements to it throughout the off-season. One improvement already warmly received, through the outstanding efforts of Warren Hodge, is the weekly rugby wrap, "Hodgie's Bits", which helped to showcase the Union across all its divisions.

Colts team numbers fell slightly, to 25 teams, following last year's record of 29 teams. In an effort to ensure the Union's divisional structure remained vibrant, Division Four was reintroduced after a two year absence. However, a couple of Division Four clubs were caught short of players from the outset and this led to a less than ideal competition. The Union is currently reviewing competition options for 2012, but a six division structure is looking unlikely.

In a first for rugby, the Union this year introduced team penalties for referee abuse. Now, not only are individuals penalised, but entire teams get hit through the loss of competition points. Most pleasingly, the Union's Judiciary had a much quieter year in 2012 with a 20% reduction in cases before them.

Unfortunately,our state's peak rugby body,the NSW Rugby Union, continues to find itself in a less than satisfactory financial position.This has led to severe funding cuts across community rugby. Suburban Rugby is not immune from this ? indeed, our annual grant from NSW Rugby has been cut to zero. This situation is not likely to change in the near future. The Union is still fortunate to be supplying services for fees to NSW Rugby in the areas of Youth, Premiership and Women. These fees generate an important revenue stream for Subbies. Furthermore, we have built up sufficient reserves that, up to now, have allowed us to weather the storm with no financial impact on clubs. However, this cannot continue and the Union is currently reviewing its revenue streams and expenditure items so as to ensure our ongoing sustainability. The Union has reported an operating deficit of $50K compared to last year's operating surplus of $50K. The $100K turnaround

can be largely attributed to the grant cut (approximately $65K) and the representative team tour to Queensland (approximately $8K).Unfortunately,the Union's investment also depreciated over the course of the season, resulting in an additional paper loss. As I have noted in previous annual reports, this is a long term investment strategy, and whilst the Union has benefited from previous share-market highs, this year a $40K loss has been reported.

Mick Kennedy was elected President following the retirement last year of long serving President, Dan Moore. The Union welcomed new Board members, Geoff Granger and John Morrison, and welcomed back onto the Board Chris Moloney. Danny Hinton moved into the Treasurer's role after an election was required in March. Chairman Paul Timmins continues to represent the Union's interests on the NSW Rugby Board. I thank the Board for their ongoing efforts and dedication to the Union. In many instances, the time they spend on their Union responsibilities is in addition to the time they spend volunteering with their own clubs. The Board and staff recently attended a weekend conference to formulate longer term plans in relation to Union finances, marketing and promotion, referees, competitions, volunteers, recruitment and retention, and IT.

The representative team performed admirably this year, wresting the Maher-Ross Cup from NSW Country at the Sydney Football Stadium and retaining the Barraclough Shield after beating QLD Suburban at Ballymore. This was the first time since 2003 that the Union has won both of those matches in the same year. The Union thanks outgoing representative coach, Michael Magriplis, and his team for their efforts.

The Union welcomed the Harlequin Inn as a sponsor this year and we thank them and our loyal band of sponsors, all of whom continued their support this year: Hartley Anderson at Coke (17 years), Chris Clark at Interfuse (15 years), John Blondin and Australian Rugby Review (15 years), Jon Clark at Gilbert (15 years), Rob Baumann at Leuko (13 years), Michael Zann at Icons of Sport (7 years), Fiona Regan at IST (6 years) and Scott Philipson at ISC/ Beyond Sport (6 years). The Union is fortunate to have some long standing professional and dedicated staff members. Tim Richards, Lisa Kinny (Premiership) and Taleah Neowhouse (Juniors) do a wonderful job. This year they were capably assisted by Harry Morton and our intern, Matt Holding. Thank you to our terrific volunteers, particularly Peter Butchard who attends and assists the office staff on a weekly basis. Thanks to NSW Rugby and the NRMA Unsung Heroes Program, Peter, ground marshal extraordinaire, Mick Clay, and Hills RFC President, Craig Brinnand, were rewarded for their long service to the game with a trip to the Rugby World Cup Semi Finals. Congratulations to those gentlemen. Finally, thank you to all the volunteers for your tremendous efforts throughout the year. I look forward to your continued support in 2012 and beyond.

Mark Green Executive Director

All smiles after UNSW capture the Stockdale Cup. Credit:Trish Tillard

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