The result was a more positive financial result than expected, against a budget deficit of 4.9 million euros. For comparison, this year’s result compares to combined losses of almost 47 million euros in the previous two years. The full report is available at the bottom of this article.
Director General of IRFU Kevin Potts said:
“Our key message today is that in relation to Irfu’s finances, after a torrid period due to the impact of Covid-19: the ship is stabilized. This however comes at a cost, in terms of diluting IRFU’s assets, as well as a negative impact on our future cash flows, but we have survived and are now working to rebuild our financial resources to pre-Covid levels. -19.
“The reasons for the better-than-expected financial result this year are largely based on certain key factors:
“Firstly, the earlier than planned opening of our pitches to all participants in the Internationals from last November. Secondly, the receipt, in arrears, in December 2021, of 18 million euros in special aid from the Government for Covid-19 revenue losses in Irish Rugby in 2021. Without the receipt of this grant, the Union would have incurred an operating deficit of over €9m for the year. to acknowledge and thank the government for their critical support during Covid-19, without which rugby, as we know it on this island, would have struggled to survive.
“In addition, the exceptional item of 44.6 million euros, which relates to products received and to be received in the coming years by the Union under the CVC and Six Nations agreement. This significant sum was received at the most opportune time, given the damage inflicted by Covid-19 on our financial reserves. However, it must be understood that this comes at a future cost, in terms of a permanent 14% reduction in future revenue from the IRFU Six Nations and Autumn Nations Series.
“The cash reserves of 66 million euros in the bank are made up of significant future income, in particular the pre-sale of 10-year notes; the amounts paid in advance for these tickets must be honored over the next decade; as well as proceeds from the URC and Six Nations CVC transactions. The sale of these assets will result in a permanent reduction in IRFU’s share of revenue from these tournaments in the future.
With details of the Women in Rugby Report due to be announced in the coming weeks, IRFU’s direct investment in women’s football now stands at over €5.5m per year, up 2.1 million euros compared to the budget of previous years. This includes the introduction of professional contracts for Women’s XV players for the first time in Union history.
Regarding the clubs match, the IRFU allocated 6.5 million euros in government subsidies to the clubs during the Covid-19, which contributed both to their survival and the possibility of reopening their doors. when public health restrictions were lifted. CEO Kevin Potts also confirmed a return to previous levels of investment in Club and Schools gaming programs at almost €12 million in 2022/23.
Potts concluded: “Thanks to their tremendous hard work, our men’s national team reached world number one and in a magnificent test match last weekend defeated world champions South Africa, our team men’s under-20s are Grand Slam champions, our men’s rugby 7s team recently won a bronze medal at the Rugby World Cup, and the men’s and women’s Energia All-Ireland league finals of the season past have been outstanding advertisements for our club game.These successes underline that there is a lot to be positive about Irish rugby at the moment, but we continue to recognize the huge amount of work, across a range of challenges , which remains to be noted.
“Although the IRFU foresees shortfalls for the next three years, it is the IRFU’s firm intention that Irish Rugby will continue to operate in a sustainable way, spending only the funds it has or can foresee with a relative certainty It makes times difficult, but I believe Irish rugby will rise to these challenges.
IRFU annual report
IRFU Annual Report – Accounts Section