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Cash-strapped IRFU receive massive multimillion-euro bailout from Irish Government

The IRFU have received €18m in emergency funding. (Getty)

The IRFU have been handed a significant financial boost after being allocated €18 million in emergency funding by the Irish Government. The announcement comes just three weeks after the IRFU reported a record deficit of €35.7 million, with the impact of the coronavirus pandemic putting a major dent in the union’s finances.

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Upon the release of that report, IRFU chief executive Philip Browne had outlined that access to emergency funding would help the IRFU ‘buy time’, warning that “the return of the (professional) game is in a fragile state and a major outbreak of the Covid-19 virus could set us back.”

Those comments painted a bleak picture following a best-ever surplus of over €28m for the 2018/19 financial year.

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The moment the England rugby team lifted the Six Nations trophy

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The moment the England rugby team lifted the Six Nations trophy

Their prayers have now been answered with the Irish Government today confirming €18 million would be allocated to rugby from the Government’s Covid-19 Emergency Fund for Sport.

However, the IRFU are not the biggest beneficiaries, with the various Gaelic Games associations receiving a total of almost €31m. The governing body of Irish soccer, the FAI, will receive €13m.

Browne welcomed the news, but again highlighted the IRFU’s ‘perilous financial position.’ When the impact of the pandemic first hit earlier this year, the IRFU quickly agreed salary deferrals with staff and players. With games still being played behind closed doors in Ireland and the country under a state of semi-lockdown, Browne has warned that further actions are under constant review.

“The funding for rugby announced today by Government and Sport Ireland is critical for the IRFU to keep rugby activities at all levels of our sport going for now for the many men, women and children who participate in, or volunteer at, Clubs week-in-week-out, and for our Provincial and International teams,” Browne said.

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“As outlined to the Oireachtas Covid-19 Committee in recent weeks and confirmed in our recent annual report, Irish Rugby is in a perilous financial position as a result of Covid-19.

“While we moved quickly to reduce costs and agree cuts with our staff and players, further reductions and actions are under constant review as we move from a relatively strong cash position just 18 months ago to facing ongoing record losses in 2020 and on into 2021.

“We are very grateful for the ongoing support shown to us by Government and Sport Ireland throughout this pandemic, especially with today’s vital funding announcement.

“We also acknowledge the support of our sponsors and loyal patrons who have invested in ten- and five-year tickets.

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“This support is vital if Irish Rugby is to survive until a time where we can once again welcome our supporters, in meaningful numbers, back to the Aviva Stadium and our provincial grounds.”

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Ed the Duck 2 hours ago
Why European rugby is in danger of death-by-monopoly

The prospect of the club match ups across hemispheres is surely appetising for everyone. The reality however, may prove to be slightly different. There are currently two significant driving forces that have delivered to same teams consistently to the latter champions cup stages for years now. The first of those is the yawning gap in finances, albeit delivered by different routes. In France it’s wealthy private owners operating with a higher salary cap by some distance compared to England. In Ireland it’s led by a combination of state tax relief support, private Leinster academy funding and IRFU control - the provincial budgets are not equal! This picture is not going to change anytime soon. The second factor is the EPCR competition rules. You don’t need a PhD. in advanced statistical analysis from oxbridge to see the massive advantage bestowed upon the home team through every ko round of the tournament. The SA teams will gain the opportunity for home ko ties in due course but that could actually polarise the issue even further, just look at their difficulties playing these ties in Europe and then reverse them for the opposition travelling to SA. Other than that, the picture here is unlikely to change either, with heavyweight vested interests controlling the agenda. So what does all this point to for the club world championship? Well the financial differential between the nh and sh teams is pretty clear. And the travel issues and sporting challenge for away teams are significantly exacerbated beyond those already seen in the EPCR tournaments. So while the prospect of those match ups may whet our rugby appetites, I’m very much still to be convinced the reality will live up to expectations…

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