The Welsh Rugby Union has reported losses of €5.8 million on turnover of €87 million for the year ended on 30th June.
A number of the indicators in their financial accounts can draw a direct line for the impact of the pandemic and lockdown of sport on the IRFU.
A loss of €9 million was attributed to the postponement of the concluding Guinness Six Nations game against Scotland and the Union also revealed that 78 per cent of its income is derived from hosting international matches.
A pause on non-essential capital investment, reduced staff salaries and the use of the UK Government Coronavirus Job Retention scheme, together with €5.4 million of income, provided by the Group’s share of CVC Capital Partners’ investment in the PRO14 competition, helped to mitigate the pandemic’s effect.
Commercial income
Commercial income for the year was up at €17 million, a 7 per cent increase on the previous year.
Income from participation in the Rugby World Cup also made a significant positive contribution, but the pandemic negatively affected competition income which was down to €7.8 million from €13 million in 2019.
Event income at the Principality stadium was halved to €1.2 million while hospitality and catering income also took a hit from €15.4 million to €10.2 million.
“We had expected to show a break-even result for the current year and were on track to achieve this up until the business and economic disruption that was caused by the pandemic,” said CEO Steve Phillips.
“Its impact on the Group has meant an unanticipated loss, but we expect to be able to retain profits over the medium term to be able to offset this loss and return net assets to previous levels.”
“The Group has a healthy business, with a strong balance sheet and adequate liquidity. Immediate measures were taken to reduce costs and protect our financial position.”
Full impact
“However, it is too early to quantify the full impact of the Covid–19 pandemic on future financial performance and the Group will continue to closely monitor the developing situation.”
The average ticket income per attendee at matches held at Principality Stadium in the year was €47.
“We are delighted that international rugby will return this autumn but the prospect of playing without spectators has an obvious and direct negative influence on our ability to generate revenue,” added Phillips.
“We have contingencies plans in place, for example for the prospect of home matches in the 2021 Guinness Six Nations having to be played in front of part capacity crowds, due to social distancing but no crowds will present severe challenges.”
Sport for Business Partners
