Rugby Cup’s shareout reduced

ALMOST €19.5 million was shared between the six European rugby federations that competed in the Heineken Cup last year.

This figure is down on the €27.5m the Irish, English, French, Welsh, Scottish and Italian rugby unions received in 2003, figures for the company that organises the tournament reveal.

Accounts for European Rugby Cup (ERC) Limited, filed at the Companies Registration Office show the company cut its losses significantly in the year to June 30, 2004. Pre-tax losses were €57,101, down from €874,978 the previous year.

No reason was given in the accounts for the reduced payments to the rugby unions, though turnover for the year fell from €32.4 million to €23.7 million.

This year the accounts did not disclose how much it earned from sponsorship or television rights. In previous years the accounts show the bulk of turnover is generated from the sponsors.

At the end of the financial year, the company had retained profits of €2 million and €3.3 million in cash.

The accounts list its primary activity as the promotion of rugby union football and, as a sporting activity, it is exempt from paying corporation tax in Ireland.

Earlier this year, the ERC renewed its sponsorship agreement with Heineken until 2009. The deal is believed to be worth €5.5 million a year to the ERC.

Each of the rugby federations name two people to the board, chaired by the 47-times capped French centre Jean-Pierre Lux. The firm is run by Ireland’s Derek McGrath.