Irish Rugby remains in a critical financial condition, reliant on the continued support of the government, sponsors, broadcasters and patrons for its ongoing survival.
Those were the words of IRFU Honorary Treasurer Patrick Kennedy addressing yesterday’s Irish Rugby’s Annual Council meeting.
In reality that will always be the case but in the continued absence of significant income from ticket sales, it is especially true even as we begin to emerge from the pandemic and lockdown.
Rugby was more dependent than any other major sport on the turnstile revenue, with as much as 80 per cent of its income taken down by the closure of facilities including the Aviva Stadium, Energia Park, Thomond Park and Kingspan Stadium.
Investment dividends from CVC’s buying into the new United Rugby Championship and the Guinness Six Nations has also been critical in keeping the ship afloat but the reality of a professional sport without fans has been brutal on the books.
We will not know the full extent of the current year impact until November with the IRFU having moved now to a permanent financial year-end of July 31 to align with the international rugby season.
“As the only sporting organisation fully supporting a professional game, we are dependent on the national and provincial teams’ ability to generate revenues which have been decimated by the impact of COVID restrictions since March 2020,” said CEO Philip Browne.
“Without additional government funding in 2021, and a return of fans to our stadia in meaningful numbers later this year, the IRFU would once again have to review all activities and swiftly implement another round of very unpalatable cost reductions. Further cuts, if necessary, would have a significant impact on the organisation and all activities from grassroots to pro game pathways.”
That grim outlook is confirmed by the ten per cent permanent reduction in the IRFU’s cost base and an estimated €30 million debt which has been built up on PAYE which has been warehoused through the crisis but which will need to be repaid.
It was confirmed to the meeting that representations have been made to the government about the continued easing of restrictions on fan attendance.
“We have made encouraging progress in recent weeks with the return of increasing numbers of supporters to various sporting and cultural events, which leaves us hopeful that fans may return in meaningful numbers to our grounds in Autumn.”
A bright spot of the day was confirmation that Fiona Steed and Yvonne Comer have been nominated to the IRFU Committee, the ruling body of the sport here, doubling the number of women sitting on that group.
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