Canterbury Irish Rugby Sept 2013Media reports over the weekend suggested that the irish Rugby Football Union were on the brink of signing a new kit deal with Canterbury.
The value suggested is in the region of €3.5 million per year between November 2014 and 2020, covering two Rugby World Cups. This would be split between cash, kit and bonuses.
Canterbury is already the supplier of kit to Leinster and to the English Rugby Football Union where the annual value of that deal is in the region of €6 million.
The manufacturer has been replaced itself as the supplier to the Scottish Rugby Union by Italian producer Macron who have an Irish connection in that they are the official suppliers to Basketball Ireland.
Last week it also lost a deal to supply South African Rugby when Asics was announced as its successor.
The bonuses are likely to include targets on performance on the pitch as well as on shirt sales. It will be interesting to see how the latter compares to previous deals given the extent to which provincial jersey sales have soared in recent years.
Adidas has put significant promotion into the new Munster kit and if a deal to maintain the Heineken Cup in anything like its present format is struck that will increase pressure on the international sides appeal in much the same way that soccer has become dominated by clubs at the expense of national teams.
The IRFU has got some cushion if the bonuses are not earned through the €11.5 million ‘exit’ payment received from Puma that was included in the most recent set of annual accounts.
sfb_roundtable_banner hpslider-1
Sports Tourism Seminar at Croke Park (September 19th)
Sport for Business 20/20 at Ulster Bank HQ (October 8th)
The Business of Youth Sport Seminar (November 28th)