Irish rugby 'burning' €5million a month to keep show on the road
Irish rugby’s leading official Philip Browne has issued a dire warning that IRFU business is in financial peril due to the ongoing Covid-19 restrictions that see matches taking place behind closed doors with no spectators present. Rugby in Ireland returned last month with the restarted Guinness PRO14 season, a campaign that culminated in last Saturday’s title win by Leinster against Ulster at a deserted Aviva Stadium.
That emptiness will continue this weekend with Leinster hosting Saracens with no fans present in Dublin and Irish officials are gravely concerned about their bottom line if current pandemic restrictions continue into the winter and force them to play their series of home Test matches in the Guinness Six Nations and the Nations Cup behind closed doors.
Speaking ahead of the likely introduction of further restrictions for the Dublin area due to a recent increase in the number of Covid-19 cases, IRFU CEO Philip Browne presented a grim outlook to an Irish Government committee.
He outlined how Irish Rugby’s net losses in 2020 as a result of Covid-19 are forecasted to amount to in excess of €30m, and the union’s financial situation will deteriorate “at an alarming rate” into 2021 if spectators do not return to stadia in meaningful numbers.
He further warned that despite the implementation of cost-cutting measures across the union, including salary cuts of up to 20 per cent, redundancies and the elimination of all but the most critical overhead costs, the IRFU’s current financial position was not sustainable and would require “significant additional actions” after December if there was no sight of supporters returning at that point.
This Leinster side deserved a flashier denouement to their unbeaten campaign but their dominance of the PRO14 isn't necessarily a negative, argues @heagneyl ???https://t.co/jRnY80TkpY
— RugbyPass (@RugbyPass) September 13, 2020
Browne added that the IRFU will be forced to commence borrowings in January, forecasting that until “we can admit spectators in meaningful numbers into our stadia, and return to some level approaching self-sustainability, the whole rugby infrastructure built over the last 150 years is under threat”.
He said it was anticipated that the IRFU will continue to “burn” at least €5m a month, primarily on professional game wages and costs, if the situation does not improve and warned that “the very existence of professional rugby on the island would be under significant threat in 2021”.
“The adjective ‘unprecedented’ has been overused over the past six months but our experience to date and history will show that if anything, the description of the 2019/20 season as being unprecedented is significantly understated,” said Browne, appearing at the meeting on The Impact of Covid-19 on Team Sport in Ireland alongside representatives from the FAI and GAA.
“Our season, and our business operations, were thrown into chaos by the Covid-19 pandemic in March when our Ireland vs Italy Six Nations fixtures became the first mass gatherings to be cancelled. This represented the first major blow to our sport and finances.
“Pre-Covid our financial situation was looking quite positive. Now we are facing an unprecedented cashflow crisis as we try to work towards the objectives of protecting our national and provincial teams, ensuring that we preserve the amateur club game and support the jobs of our 500 employees to the extent that we can.
“The current projected position to the end of June 2021, showing a negative cash swing of almost €40m from a cash surplus of some €28m in June 2020, to borrowings of just over €10m, backed by union assets, is very serious and is being kept under constant review.
“If these projections were to materialise, the very existence of professional rugby on the island would be under significant threat in 2021. Our audited financial statements for the period to July 31, 2020, will show an actual record financial loss of more than €35m.
“Back in January 2020, we were forecasting for a planned deficit of €3.5. Until we can admit spectators in meaningful numbers into our stadia, and return to some level approaching self-sustainability, the whole rugby infrastructure built over the last 150 years is under threat.
“We will, of course, continue to follow NPHET and public health guidelines in relation to this, but that support comes at a significant cost to our sport. It is our ambition, with the support of Government, to survive as a properly functioning unit and in this way repay the faith shown in us by playing our part in supporting the national recovery effort which will demand so much of us all in the years to come.
“We believe that rugby has a significant role to play in the physical and mental wellbeing of Irish people, and in the face of this cruel pandemic we continue to have a positive contribution to public health and Irish society and hope to do so for years to come.”
We can't wait for the action to unfold! https://t.co/ot0NE8ZlzM
— RugbyPass (@RugbyPass) September 17, 2020
Comments on RugbyPass
Thanks Brett, love your articles which are alway pertinent. It’s a difficult topic trying to have a panel adjudicating consistently penalties for red card issues. Many of the mitigating reasons raised are judged subjectively, hence the different outcomes. How to take away subjective opinions?
4 Go to commentsYes Sir! Surprising, just like Fraser would also have escaped sanction if he was a few inches lower, even if it was by accident that he missed! Has there really been talk about those sanctions or is this just sensational journalism? I stopped reading, so might have missed any notations.
4 Go to commentsAI is only as good as the information put in, the nuances of the sport, what you see out the corner of the eye, how you sum up in a split second the situation, yes the AI is a tool but will not help win games, more likely contribute to a loss, Rugby Players are not robots, all AI can do if offer a solution not the solution. AI will effect many sports, help train better golfers etc.
45 Go to commentsIt couldn’t have been Ryan Crotty. He wasn’t selected in either World Cup side - they chose Money Bill instead. And Money Bill only cared about himself, and that manager he had, not the team.
25 Go to commentsYawn 🥱 nobody would give a hoot about this new trophy. End of the day we just have to beat Ireland and NZ this year then they can finally shut up 🤐
13 Go to commentsTalking bout Ryan Crotty? Heard Crotty say in a interview once that SBW doesen't care about the team . He went on to say that whenever they lost a big game, SBW would be happy as if nothing happened, according to him someone who cares would look down.. Personally I think Crotty is in the wrong, not for feeling gutted but for expecting others 2 be like him… I have been a bad loser forever as it matters so much to me but good on you SBW for being able to see the bigger picture….
25 Go to commentsThis sounds like a WWE idea so Americans can also get excited about rugby, RUGBY NEEDS A INTERNATIONAL CALENDER .. The rugby Championship and Six Nations can be held at same time, top 3 of six nations and top 3 of Rugby championship (6 nations should include Georgia AND another qualifying country while Fiji, Japan and Samoa/Tonga qualifier should make out 6 Southern teams).. Scrap June internationals and year end tours. Have a Elite top six Cup and the Bottom 6 in a secondary comp….
13 Go to commentsThe rugby championship would be even stronger with Fiji in it… I know it doesen’t fit the long term plans of NZ or Aus but you are robbing a whole nation of being able to see their best players play for Fiji…. Every second player in NZ and AUS teams has Fijian surnames… shame on you!!! World rugby won’t step in either as France and England has now also joined in…. I guess where money is involved it will always be the poor countries missing out….
84 Go to commentsNo surprise there. How hard can it be to pick a ball off the ground and chuck it to a mate? 😂
2 Go to commentsSometimes people just like a moan mate!
4 Go to commentsexcellent idea ! rugby needs this 💪
13 Go to comments9 Brumbies! What a joke! The best performing team in Oz! Ditch Skelton for Swain or Neville. Ryan Lonergan ahead of McDermott any day! Best selection bolter is Toole … amazing player
12 Go to commentsI like this, but ultimately rugby already has enough trophies. Trying to make more games “consequential" might prove to be a fools errand, although this is a less bad idea than some others. Minor quibble with the title of the article; it isn’t very meaningful to say the boks are the unofficial world champions when it would be functionally impossible for the Raeburn trophy not to be held by the world champions. There’s a period of a few months every 4 years when there is no “unofficial” world champion, and the Raeburn trophy is held by the actual world champions.
13 Go to commentsIts a great idea but one that I dont think will have a lot of traction. It will depend on the prestige that they each hold but if you can do that it would be great. When Japan beat the Boks (my team) I was absolutely devestated but I wont deny the great game they played that day. We were outclassed and it was one of the best games of rugby I have seen. Using an idea like this you might just give the the underdog teams more of an opportunity to beat the big teams and I can absolutely see it being a brilliant display of rugby. They beat us because they planned for that game. It was a great moment for Japan. This way we can remove the 4 year wait and give teams something to aim for outside of World Cup years.
13 Go to commentsHi, Dave here. Happy to answer questions 🥰
13 Go to commentsDon’t think that headline is accurate. It’s great to see Aus doing better but I’m not sure they’ve shown much threat to the top of the table. They shouldn’t be inflating wins against the lousy Highlanders and Crusaders either.
3 Go to commentsSuch a shame Roigard and Aumua picked up long term injuries, probably the two form players in the comp. Also, pretty sure Clarke Dermody isn’t their coach. Got it half right though.
3 Go to commentsOh the Aussie media, they never learn. At least Andrew Kellaway is like “Woah, yeah it’s great, but settle down there guys” having endured years of the Aussie media, fans, and often their players getting ahead of themselves only to fall flat on their faces. Have the “We'll win the Bledisloe for sure this year!” headlines started yet? It’s simple to see what’s going on. The Aussie teams are settled, they didn't lose any of their major players overseas. The Crusaders and Chiefs lost key experienced All Blacks, and Razor in the Crusaders case, and clearly neither are anywhere near as strong as last year (The Canes and Blues would probably be 3rd & 4th if they were). The Highlanders are annually average, even more so post-Aaron Smith and a big squad clean out. The two teams at the top? The two nz sides with largely the same settled roster as last year, except Ardie Savea for the Canes. They’ve both got far better coaches now too. If the Aussies are going to win the title, this is the year the kiwi sides will be weakest, so they better take their chance.
3 Go to commentsThe World Cup has to be the gold standard, line in the sand. 113 teams compete for what is the opportunity to make the pool stages, and then the knockout games for the trophy. The concept is sound. This must have been the rationale when the World Cup was created, surely? But I’m all for Looking forward and finding new ways for the SH to dominate the NH into the future. The autumn series needs a change up. Let’s start by having the NH teams come south every odd year for the Autumn/Spring series games?
13 Go to commentsWhat’ll happen when the AI models of the future go back in time and try to destroy the AI models of the past standing in their way of certain victory?
45 Go to comments