Although the World Cup effectively cost the IRFU circa €10 million, even accounting for €5 million from World Rugby to offset some of the costs incurred for France 2023, the IRFU CEO Kevin Potts maintained that Irish rugby is in a relatively healthy financial state.
Furthermore, despite reporting a deficit of just under €1 million in their annual accounts up to 31st July 2023 to the IRFU’s continuity AGM on Friday, this was considerably less than the €7.4 million deficit that had been forecast for the year. Potts attributed this to the Irish team’s Grand Slam success, Bank of Ireland coming on board as Autumn Series sponsors and nine-year ticket sales.
The union’s income has decreased from €116 million to €92 million but the 2021/22 accounts included an €18 million Government Covid grant, and the final CVC money from the URC deal in 2020.
“Expenditure has also fallen from €110 million to €93 million,” added Potts, “reflecting a return to a more normal cost profile after last year’s Covid-impacted spending increases. Our balance sheet remains solid, with net assets relatively unchanged at €106 million and cash balances of €63 million”.
The costs involved in preparing for and competing in the World Cup – be they training camps, extra support staff, logistics, additional hotel costs – are compounded by the loss of the home autumn internationals and do not form part of the annual financial report up to the end of last July.
“Our deficit for 2023/24 is likely to be well in excess of this €10 million,” admitted Potts. “However, we do expect a return to close to break even in 2024/25, the following year, and at no stage in the next 10 years are we forecasting that the IRFU will go into debt.
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“I often speak about the IRFU living within its means, only spending funds we have or can predict with relative certainty, and I am determined that we will continue to adhere to this in the medium to long term.”
The IRFU’s chief financial officer Thelma O’Driscoll commented: “Cashflow is the lifeblood of every business. If there’s anything that keeps an accountant awake at night it’s cashflow. Short term everything is great, we have 63 million in the bank, so we’re in a really good position and can afford to pay for World Cup and have deficits, but we’re constantly looking out to the future to make sure we have enough in the long term.”
Looking ahead, Potts admitted: “The biggest challenge facing our sport in general is the future broadcasting outlook. We’re comfortable enough running deficits for now, but all of us – the unions – the next TV cycle from 2026 onwards, and the broadcast values that are obtained at that time are really important.
“We’re all working together very well on that, but that is vital. If we don’t get uplifts at that time, we will have to start cutting some of our programmes. We’re not expecting to have to do that, we’re hoping and optimistic about that.”
As to whether the Six Nations could be sold, even partially, to pay-per-view, Potts said: “Not necessarily, I know there’s a lot pf speculation around that in the last number of days. The balance of what we all want is maximum audience and maximum revenues.
“There’s no point having teams that are competitive if you don’t have the revenues, because you’re not going to have a big audience. We’re really pleased that as of now all of our games, including provincial games and URC, are all free-to-air, and they remain so until the next sale cycle begins. It’s too early to speculate, but to date it’s all been free-to-air in the Six Nations.”
At the AGM, four new provincial representatives were elected on to the Union Committee – Grainne Carroll, Diane Nixon, Josephine Feehily, and Regina Moran – in keeping with the IRFU’s plan to achieve 40 per cent gender balance before the end of the year, as requested by the Government and Sport Ireland.
Following on from the initial 2019 collective bargaining agreement between the IRFU and Rugby Players Ireland, which was the first of its kind in the northern hemisphere, “an updated and enhanced collective bargaining agreement” has been signed between the two bodies.
