Croke Park sidelines pay dividends

GAELIC GAMES: Croke Park will soon be earning as much from ancillary activities as it does from match-related income.

GAELIC GAMES: Croke Park will soon be earning as much from ancillary activities as it does from match-related income.

Figures for last year indicate that the split between the two revenue streams is running at 40-60 and should converge on a 50-50 ratio as soon as the GAA's hotel project on Jones's Road is completed this autumn.

The stadium's income is made up of rent it receives from the GAA for the use of the venue on match days (just over €4 million in the previous financial year of 2003) and the rental of conference facilities (€1,025,932).

For the purposes of calculating match and non-match income, other revenue streams aren't taken into account. For instance, the €8,328,090 that featured in (Páirc an Chrócaigh Teo) the holding company's revenue account for 2003 is income written off in instalments from the sale of premium seats and boxes.

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Coming in at five- and 10-year intervals, the income isn't regarded as part of the stadium's annual trading.

To raise the level of business being done outside of match days has been a priority for Stadium director Peter McKenna.

"In 2001 the figure was around five per cent, but last year it's reached nearly 40," he says. "Conference and meetings business is up about 50 per cent on the previous year. There's been a lot of repeat business.

"One advantage is that it's a tremendously well-known venue. People like the location because it's different.

"There's something almost therapeutic about looking out the window and seeing someone cutting the grass, compared to the hustle and bustle of a big hotel."

This 50 per cent jump comes on top of a 67 per cent increase the previous year, evidence of strong growth in conference business.

"Obviously we're never going to get 100 per cent bookings for the facilities, but that figure will step up when the hotel comes on stream," says McKenna.

The hotel referred to is the Jury's at Croke Park, which is expected to be completed in time for this year's All-Ireland finals. It will be purely a residential hotel with conference business directed across the road. Hotel accommodation is seen as the final piece in the jigsaw that will attract overseas business to the stadium.

Assuming it comes in on schedule, the hotel will have been completed in less than 18 months. Jury's have the hotel management contract for 35 years.

Just as the hotel will enhance the appeal of the conference facilities, the completion of the Northern End terrace will enable the GAA to stage concerts at Croke Park.

The stadium has permission to stage three non-sporting events in the ground, and this year U2 are scheduled to play two dates in June. A contract has been signed with promoters MCD to cover the next three years, 2005-07 inclusive.

All ancillary business will help the GAA reduce the proportion of annual revenue coming from gate receipts - a figure that has stayed fairly solidly between 65 and 70 per cent, with both match receipts and other business rising in tandem.

Whereas Croke Park's business model is progressing satisfactorily, it is also unique.

"Different organisations have different commercial outlets," says McKenna. "I've looked at the Manchester United accounts and their revenue is mostly from merchandising and television rights. Gate receipts are only a small part of the income at Old Trafford.

"American football is different again. The provision of car parking in municipal areas is often the biggest revenue stream for franchises there. Every stadium model is different."

Seán Moran

Seán Moran

Seán Moran is GAA Correspondent of The Irish Times