Welcome return to winning form for European Rugby Cup as profits rise

EUROPEAN RUGBY Cup (ERC), the Dublin-based company that manages the Heineken Cup returned to profitability last year.

Newly filed accounts for the company show a profit of almost €540,000 in the 12 months to the end of June 2007. In the previous financial year the company broke even and in 2005 it made a loss of €538,408.

The turnaround in ERC’s fortunes was due to a 40% rise in its income from €26.4 million to €36.9m.

A note to the company 2007 accounts said: “Turnover increased from the previous year due to an increase in television and sponsorship income.”

Last year the ERC signed up several new sponsors, including Ford, EDF Energy, Alice and Fed Ex.

The boost to income meant a bumper pay-out to the six rugby federations that make up the Heineken Cup’s membership. According to the accounts, a record €31.2m was distributed to the Irish, English, Welsh, Scottish, French and Italian rugby federations. That was an increase on the €22m paid out in the previous financial year.

Income is distributed according to how many teams a federation provides to the Heineken Cup and the European Challenge Cup.

The move back into the black in 2007 saw retained profits at the company hit €2m. The company does not pay any tax on profits as it is engaged in an exempt activity.

The ERC employed 15 full-time staff in 2007 and is run by Derek McGrath. The board is chaired by the 47-times capped French centre Jean-Pierre Lux. Each rugby federation provides two directors to the ERC board.