The IRFU Annual report showed a healthy surplus of €7.3 million in the year 2013/2014. Over the coming days we will look at a number of features within the report, starting today with the success in revenue terms of the international team.
As the Provincial structure has grown in strength through the professional era, the IRFU has always been at great pains to point out the continued dominance of the international side in terms of consistent profile and revenue generation.
Those claims are backed up by the figures for the year gone by with the International men’s team generating 75% of the money coming into the sport and effectively subsidising the continued growth and development of the game in Leinster, Munster, Ulster and Connacht.
The money attributed to the international team is made up of gate receipts, broadcasting income and payments from the RBS Six Nations and the British and Irish Lions Tour.
All of those areas showed strong growth last year adding to the €5.5 million increase in revenue that made up the surplus.
Attendance
Attendance was boosted as it is every second year by having three home games in the 6 Nations. Each of the games is always a sell out so the additional 50% from hosting a third game makes an appreciable difference.
When it comes to ten year ticket sales this variance is evened out and there may be an appetite for a ‘season ticket’ approach for the tournament covering the five home games over a two year period. This could lead to a boost in cash flow through getting revenues in at an earlier stage and there is unlikely to be resistance from likely buyers who would know then that they have their ticket secured over a full cycle of the biggest games.
Season ticket sales have been experimented with around the Autumn Series, at provincial level and in Soccer and GAA and there is an option for a short term boost that will benefit revenue, be popular with fans and avoid the need to explain why next year’s numbers will likely fall back.
Prize Money Boost
International revenue was also boosted this year by the performance in winning the Championship as opposed to finishing fifth in 2013. Prize money is based on performance and that meant a rise in 2014 of €2.6 million.
Sporting optimists will believe this is the benchmark but more pragmatic voices, including that of the Treasurer will recognise that a Championship win is a high water mark rather than the norm.
A follow on benefit from that victory will be added interest in this year’s Autumn Series. The games against Samoa and Australia last year contributed to an additional amount of €1.8 million in gate receipts and advance ticket sales for this years games against South Africa, Georgia and Australia again are believed to be ahead of forecast.
When tickets went on general sale last month it was announced that advance requests from clubs were 5% ahead of where they were last year.
Extending the Lions
The British and Irish Lions Tour generated another windfall payment in 2013/14 though the amount accruing is not broken out in the accounts. The Australian Rugby Union revealed the level of income it generates when posting an incremental surplus last year of $35 million (€25 million) over and above what they would normally generate from a summer series.
Given the enormous value of the Lions it may be worth looking at ways in which the concept could be extended. Imagine the value in financial as well as profile metrics of switching the Lions schedule so that it ran in a format every two as opposed to four years, and possibly with a combined Southern hemisphere team coming to play in Europe.
Of course the Lions tradition is of a touring team and there would be natural resistance among traditionalists but sport always needs to move forward, taking the best of today and enhancing it for tomorrow.
Speaking of tomorrow we will continue our analysis of the accounts by looking at the commercial and club elements of the accounts.
