RUGBY:THE HEINEKEN Cup, and by extension the ERC, continues to grow, and given a relatively harmonious relationship between all their stakeholders as things stand, the ERC chief executive Derek McGrath is targeting further growth globally beyond its European base.

As a benchmark of their growth, last season’s ERC turnover hit €50 million for the first time, about double what it would have been five years ago. Of this, such is their unique model, roughly 85 per cent, or €43 million, is re-distributed in ‘profits’ to the various federations and unions and from them to their clubs and provinces.

The IRFU budget for having one quarter-finalist, so given they had two quarter-finalists last season, plus a semi-finalist and winning finalist, when one also factors in leasing out the Aviva Stadium for Leinster’s quarter-final and semi-final, plus their share of gate receipts, the union probably earned €2.5 million more than they budgeted for.

The current five-year ERC accord comes to end in June 2012, but after the protracted negotiations which brought the Heineken Cup’s future to the brink in 2007, unlike then there is an agreement that if any stakeholder wants to exit the tournament, they are obliged to give two years’ notice.

Without any such declaration, the accord continues onwards.

“The days are gone when there was a question mark over whether European (club) tournaments were going to be part of the landscape in all of the countries,” said McGrath, yesterday.

“The power of the brand in all the tournament’s countries is now universally accepted. What is never to be taken for granted is that there are always different dynamics within countries and around our table, but everybody wants to make this better.”

That said, McGrath also accepted that the next 12 months would be another “significant period” for the ERC in proving to all its stakeholders that they can bring the tournament forward. This season’s 17th Heineken Cup final has been confirmed for Saturday, May 19th, with the Amlin Challenge Cup final also to be held in London that weekend in a repeat of last season’s double in Cardiff.

Speaking at yesterday’s Irish launch of the Heineken Cup in the Convention Centre Dublin in Spencer Dock, McGrath said the biggest challenge now facing the ERC was to expand its growth beyond their European base.

“We want the Heineken Cup to be the best competition in the world. It’s European but we have a global ambition,” said McGrath. “It’s got a long way to go. Its constitution is European, its participants are European but its perspective is global.

“Look at the players who are playing in the tournament. Look at the audiences that we are talking to. Look at the partners who we have now. They are global brands who want to be talking to a much wider audience in an association with a tournament which has the capacity to shout loud.”

He cites, as an example, the presence of 270 players who were at the World Cup in this season’s tournament and the advent of Dove as the “final piece in our sponsorship jigsaw”. Unilever thus joining Amlin, FedEx and EDF as one of the Heineken Cup’s premium partner.

The Heineken Cup has a low, if improving profile, in the Southern Hemisphere, and on foot of French sides moving matches beyond their country’s boundaries on the continent, McGrath cites Saracens’ decision to host Biarritz in round five next January in Cape Town.

“It’s their initiative but we’re thrilled with it,” admitted McGrath. “The Heineken Cup doesn’t have the penetration it could have but its awareness is building. And what’s important is that less is more, so that when we expose it we want it to be something of value.”

“When we looked at going to South Africa, we wanted it to be a good quality product and we took the view that commercially it makes a load of sense. At that time, that match would be shown live in South Africa anyway, so why not take the product there? But way beyond that, and the commercial interests of ourselves and Saracens, we had discussions with the FFR (French), the RFU, with the South African rugby union and with the IRB, with the clubs themselves.”

This landmark fixture will expose the tournament beyond live television and, given the smaller time differences, South Africa is the most fruitful market for the ERC in the southern hemisphere.

Furthermore, the Saracens-Biarritz fixture occurs in their off-season. McGrath acknowledges that there would be some resistance to showcasing their flagship tournament in the Southern Hemisphere, “but we’re all about building the rugby market, and competitiveness is good.”

McGrath clearly believes that the world is the ERC’s oyster, and that the possibilities are endless.

With London Irish at an advanced stage of negotiations for hosting a Heineken Cup or Premiership match in Boston, thus, for example, who’s to say Munster (or one of the other Irish provinces) wouldn’t consider expanding their American pre-season adventure of three years ago by one day hosting a Heineken Cup match in the USA?