IRFU's budgeted €4.7m deficit reduced to €2.8m following improved on field performance
The Irish Rugby Football Union announced that its planned deficit of €4.7m for the 2016/17 season has come in €1.9m under budget at €2.8m following an improvement in the performances of the national and provincial teams.
Â
In April 2016, the IRFU agreed to budget for a deficit of €4.7m to address the immediate funding difficulties facing all four provinces due to player cost inflation and the need to continue investment in the grassroots game and player development.Â
Â
This represents the first time that the Union recorded a deficit since the 2007/08 season however it is anticipated that the IRFU will return to a breakeven situation no later than 2018/19.
Â
Tom Grace, IRFU Honorary Treasurer, speaking ahead of the Union's annual general meeting at the Aviva Stadium said, 'The Union and Provinces had a good year off the field and this has fed into the Union's financial result for the year with the €2.8m deficit being some €1.9m better than budgeted.Â
Â
The combination of prize money and an increase in (sponsorship) contract amounts outweighed the negative impact of exchange rates on Six Nations broadcasting income. Against budget total revenues were €2.9m ahead due to strong Guinness Series gates, impressive Six Nations hospitality, prize-money and share of (European Cup) gates.
Â
With regard to expenditure costs increased by €8.3m to €79.4m due to a combination of factors. The €3.5m increase in professional games costs is due to no tour taking place in 2015/16, match costs for a full Guinness Series together with the Chicago match, insurance costs, player and management bonuses and increased funding for the provinces.
Â
It is not the Union's usual practice to budget for a deficit and we expect to return to break even next season however it is important to note that a number of the Provinces will be budgeting for a deficit this season but that is not sustainable long term and must be addressed.â€