IRFU touch on English club rugby woes as their own mixed forecast revealed
Irish rugby’s governing body is confident the four provinces will survive current financial pressures amid the crisis engulfing the English club game.
Wasps last month entered administration and were suspended from the Gallagher Premiership, a week after divisional rivals Worcester were wound up.
The Irish Rugby Football Union (IRFU) on Friday announced it has exceeded expectations for the year ended July 31, 2022 by recording an operating surplus of 5.9million euros (£5.17m) but is forecasting deficits for each of the next three years.
While he acknowledged challenging times lie ahead, IRFU chief executive Kevin Potts is optimistic Connacht, Leinster, Munster and Ulster will pull through.
“I don’t really want to comment on the specific clubs, but it’s really important for professional rugby that you operate with the funds you have with certainty,” he said.
“I don’t believe it will have any impact here as long as – and I believe it will be the case – the four provinces and ourselves operate our models on a sustainable basis.
“Obviously we have sympathy for all of the players who are coming out of contract or losing their jobs because of this but in a strange way it might have a deflating impact, perhaps, on player costs in general.
“In professional sport, if you don’t have a sustainable model you are going to run into trouble.
“That (a sustainable model) is what we are determined to ensure is the case here.”
IRFU bosses, who endured combined losses of almost €47m in the previous two years amid the global pandemic, had predicted a deficit of 4.9m euros for 2021-22.
The better-than-expected results were largely attributed to fans returning to Ireland Test matches sooner than anticipated following the outbreak of coronavirus, the receipt in arrears of 18m euros in government assistance for Covid-19 income losses, and €44.6m in respect of CVC Capital Partners’ Six Nations deal.
However, the final of those three factors comes at a cost of a permanent reduction of 14 per cent of future Six Nations and Autumn Nations Series income.
Without the “critical” government grant, Potts revealed the IRFU would have reported an operating deficit of more than 9m euros in their latest figures, admitting “rugby as we know it on this island would have struggled to survive”.
The IRFU has a current cash balance of €66m but that is insufficient to cover the €97m of advanced 10-year ticket, corporate box and naming-right sales which must be delivered over the next decade.
“We are forecasting deficits over the coming three years, but that’s on the expectation that after three years there should be an uplift in broadcast revenues in the next cycle from the Six Nations,” added Potts.
“If that doesn’t happen, we’ll have to look at our cost base again. We are clearly concerned, very aware of the economic situation, the energy crisis and the cost of living issues, and we’re very aware of what’s gone on in other jurisdictions with some of their clubs.
“We will live within our means, ourselves and the four provinces, and that’s the key to getting through any of these issues in the future.
“This makes for challenging times but I do believe Irish rugby will rise to these challenges.”
Comments on RugbyPass
A lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
3 Go to commentsThe RFU will find a way to mess this up as usual. My bet is there will be no promotion into the the Premiership, only relegation into National League One. Hopefully they won’t parachute failed clubs into the league at the expense of clubs who have battled for promotion.
1 Go to commentsWell that’s the contracts for RG and Jordie bought and paid for. Now, what are the chances we can persuade Antoine to hop over with all the extra dosh we’ll have from living at the Aviva & Croke next season…??? 🤑🤑🤑
2 Go to commentsWow, that’s incredible. Great for rugby.
2 Go to commentsYou probably read that parling is going to coach the wallaby lineout but if not before now you have.
14 Go to commentsIf someone like Leo Cullen was in O’Gara’s place I don’t hear Boo-ing. It’s not just that La Rochelle has hurt Leinster and O’Gara is their Irish boss. It’s the needle that he brings and the pantomime activity before the game around pretending that Munster were supporting LaRochelle just because O’Gara is from Cork. That’s dividing Irish provinces just to get an advantage for his French Team. He can F*ck right off with that. BOOOOO! (but not while someone is lying injured)
3 Go to commentsDid the highlanders party too hard before the game? They were the pits.
1 Go to commentsWhat a player! Not long until he’s in the England side, surely?
2 Go to commentsHe seems to have the same aura as Marcus Smith - by which I mean he’s consistently judged as if he’s several years younger than he actually is. Mngomezulu has played 24 times for the Stormers. When Pollard was his age he had played 24 times for South Africa! He has more time to develop, but he has also had time to do some developing already, and he hasn’t demonstrated nearly as much talent in that time as one would expect. If he is a generational talent, then it must be a pretty poor generation.
4 Go to commentsThe greatest Springbok coach of all time is entirely on the money. Rassie and Jacques have given the south african public a great few years, but the success of the springbok selection policy will need to be judged in light of what comes next. The poor condition that the provincial system is currently in doesn’t bode well for the next few years of international rugby, and the insane 2026 schedule that the Boks have lined up could also really harm both provincial and international consistency.
21 Go to commentsJake White is a brilliant coach and a master in the press. This is another masterclass in media relations and PR but its also a very narrow view with arguments that dont always hold water. White wants his team to win, he wants the best players in SA and wants his team competitive. You however have to face up to the reality of a poor exchange rate and big clubs with big budgets. SA Rugby cant compete and unless it can find more money SA players will keep leaving regardless of Springbok eligibility and this happened in 2015 - 2017. Also rugby is not cricket. Cricket has 3 formats and T20 cricket is where the money is at. When it comes to club vs country the IPL is king but that wont happen because the international calendar does not clash with the club calendar in rugby. So the argument about rugby going down the same path as cricket is really a non-starter
21 Go to commentsNZ rugby seem not to have learnt anything from professional rugby. Super rugby was dying and SA left before they died with the competition. SA rugby did a u turn on their approach to international players playing overseas and such players are now selected for Bok teams. As much as each country would love to retain their players playing in local competitions, this is the way the world is evolving my friends. Move with it or stay 20 years behind the times. One more thing. NZ rugby hierarchy think they are the big cheese. Take a more humble approach guys. You do not seem to have your players best interests at heart.
3 Go to commentsBeaches? In Cardiff? Where?
1 Go to commentsHe is right , the Crusaders will be a threat. Scott Barrett, ( particularly), Fergus Burke , Codie Taylor, ( from sabbatical) etc due back soon for the Crusaders. There are others like Zach Gallagher too. People can right the Crusaders off, Top 8 , here we come !!
1 Go to commentsWe will always struggle for money to match the other sides but the least the WRU can do is invest properly in Welsh rugby. Too much has been squandered on vanity projects like the hotel and roof walk amongst others which will never see a massive return. Hanging the 4 pro sides out to dry over the last decade is now coming back to bite the WRU financially as well as on the pitch. You reap what you sow.
1 Go to commentsWhat do you get if you cross a doctor with a fish? A plastic sturgeon
14 Go to commentsWhat happened to feleti Kaitu’u? Hasnt played in a while right?
1 Go to commentsGregor I just can’t agree with you. You are trying to find something that just isn’t there. Jordie Barrett has signed until 2028. By the end of that he would have spent probably 11-12 years on Super Rugby and you say he can’t possibly have one season playing somewhere else. It is absurd. What about this scenario, the NZR play hard ball and he decides to leave and play overseas. How would that affect the competition. There seems to be an agenda by certain journalists to push certain agendas and don’t like it when it’s not to their liking. I fully support the NZR on this. Gregor needs to get a life.
3 Go to commentsHope he stays as believe he can do a great job.
1 Go to commentsMake what step up? Manie has a World Cup winner’s medal around his neck and changed the way the Springboks can play. He doesn’t have anything to prove to anyone. The win record of the Boks with him in the team is tremendous. Sacha can be wonderful and I hope he has a very succesful Bok career, but comparing him to Manie in terms of the next Bok flyhalf is very strange. Manie is the incumbent (not the next) and doing pretty incredibly.
4 Go to comments