World Rugby has reported a loss for 2014 of £68.2 million (€98 million) though when the deferred benefit of running the 2015 Rugby World Cup are factored in the International Governing Body is ahead of budget for the 2013-2016 business cycle.
The apparent anomaly in the seeming massive loss for the year is down to adherence to and adjustment for International Financial Reporting Standards (IFRS), which World Rugby operates in line with global best practice. Under IFRS, World Rugby defers revenues and direct expenditures for Rugby World Cup 2015 until the accounts for the current year.
The loss for the year before the IFRS adjustment was £1m, which represents a position significantly ahead of forecast and reflects the growth in rugby popularity worldwide, particularly in major markets.
It is on target to deliver a record investment programme in the sport for 2015 that will reach £53 million (€76 million). Again this investment does not include money invested in the Rugby World Cup starting on September 18th as this is treated separately.
That places it on target to deliver £201 million funding over the four year period to 2016, representing a 53 per cent increase over what it did up to 2012.
Rugby participation numbers have also been revealed at a record 7.2 million players around the world and growing in the year by 600,000. The figure is 2.6 million ahead of where it was at the time of the last Rugby World Cup in 2011.
Unprecedented growth
“Rugby is experiencing unprecedented growth around the world and these strong financial results underpin our record investment programme which continues to be the driving force behind year-on-year increases in registered and community rugby participation from the playground to the podium,” said World Rugby Chairman Bernard Lapasset.
“These record levels of investment are driven by the strength of the Rugby World Cup brand as one of the world’s most successful, best-loved and largest major sporting events, popular with players, fans, broadcasters and commercial partners alike.”
“As the source of 90 per cent of World Rugby’s revenues, it delivers the long-term financial platform to develop and grow the game around the world.”
“We are committed to ongoing investment in our unions, at all levels, and continue to collaborate with them and our regional associations to ensure that we service and support their strategic needs. We are also committed to supporting our high performance and development unions through unprecedented investment in competitions to prepare for RWC 2015 and beyond to RWC 2019.”
Rugby World Cup 2015
The commercial programme for Rugby World Cup 2015 is set to achieve record levels, driven by confidence in the Rugby World Cup brand, particularly in the European broadcast market. That sense of confidence throughout the northern hemisphere heartland of the sport can be read as a positive for ireland’s bid to host the 2023 Rugby World Cup.
Revenues for the 2015 renewal are currently in line with budget but ahead of schedule with all worldwide partnerships completed in record time.
“The commercial programme for Rugby World Cup 2015 in England is on track to deliver a record net surplus for investment in the game of approximately £150 million with our top level worldwide partner programme locked down in record time and with record value and a wider, stronger broadcast platform,” said World Rugby CEO Brett Gosper.
“World Rugby’s mission to grow the global rugby family is reflected by the organisation’s diligence in maintaining reduced operating costs and strategically investing in the game for the period 2013-16 through targeted programmes, including training and education, player welfare, tournaments and high performance, including assistance with preparation costs for RWC 2015. We are also investing significantly in men’s and women’s sevens as we continue preparations for our Olympic Games return at Rio in 2016.”
World Rugby is based in Dublin from where it operates its global operations.
