The IRFU may have incurred around €10 million in costs related to the World Cup, but the CEO Kevin Potts firmly believes that Irish rugby is still in a sound financial state. Potts highlighted that despite a deficit of close to €1 million in their recent annual accounts up to July 31, 2023, this was significantly less than the forecasted €7.4 million deficit for the year. He attributed this to the success of the Irish team, new sponsorship deals, and ticket sales.
The union’s income has decreased, but the 2021/22 accounts included a €18 million Government Covid grant and CVC money from the URC deal in 2020. Potts also pointed out that expenditure has fallen, reflecting a return to normal costs after last year’s Covid-impacted spending increases. He emphasized that the balance sheet remains solid, with net assets relatively unchanged at €106 million and cash balances of €63 million.
Looking ahead, Potts admitted that there will likely be a deficit for 2023/24, but he expects a return to close to break even in 2024/25. He reassured stakeholders that the IRFU will not go into debt in the next 10 years and pledged to continue living within the means of the organization.
The IRFU’s chief financial officer Thelma O’Driscoll echoed Potts’ sentiments, emphasizing the importance of maintaining strong cash flow for the long-term sustainability of the organization.
Potts also highlighted the challenges facing the sport, particularly in the future broadcasting landscape. He stressed the need for the next TV cycle from 2026 onwards to secure optimal broadcast values, as they are crucial for sustaining revenues.
In response to speculation about the Six Nations being sold to pay-per-view, Potts emphasized the importance of reaching a balance between maximizing audience and revenues. He expressed satisfaction that all games, including provincial games and URC, are currently free-to-air.
At the AGM, the IRFU elected new representatives onto the Union Committee, in line with the organization’s plan to achieve 40% gender balance by the end of the year. Additionally, an updated collective bargaining agreement has been signed between the IRFU and Rugby Players Ireland, reinforcing the positive relationship between the two bodies.
The IRFU’s commitment to financial prudence and sustainable growth underscores the organization’s dedication to safeguarding the future of Irish rugby. Despite the financial implications of the World Cup, the IRFU remains focused on maintaining its financial stability while embracing new opportunities for growth and development in the sport.
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