GAA tells clubs €6m insurance must be paid
The GAA’s clubs have been told by Croke Park that they must pay their insurance premiums regardless of their premises being closed until July 20.
Central Council has already paid the €6m worth of premiums for units for 2020 and while they were able to give them a six-month window to pay back the monies they are now due.
Counties were informed today that despite the Covid-19 restrictions liability and property insurance has to remain in place “for all affiliated units”. As things stand, only maintenance such as grass-cutting and property checks are permitted on the premises.
It is unlikely that refunds will be returned to the GAA as a result of the inactivity because of the GAA’s recent history where claims have exceeded the premiums paid.
Ultimately, the clubs’ obligations to recompense Central Council falls on their respective county boards. Croke Park has proposed a payment plan across the summer months to facilitate clubs who are struggling to pay the amount owed.
Where the GAA are more hopeful but far from certain in making savings, is in the player injury benefit fund, which has been suspended since the middle of March and will not resume until July 20.
Last year, over €27m was received in the scheme from teams and other sources such as gate receipts. Approximately €2.6m was paid into the fund by provincial and national GAA gate receipts last year but that number will be significantly lower this year depending on the return of inter-county activity.
As county teams have been told to stop training, teams across the board have been advised that the injury benefit fund will not cover injuries “that occur whilst an individual is taking part in an on-line training session or an individual training program. Should an individual sustain an injury and incur medical costs, the individual will be personally responsible for all such costs.”
Meanwhile, the Irish Examiner understands that the GAA does not have the senior inter-county championship underwritten in the event they are cancelled.
That the organisation does not have such a policy is place is not surprising as it is usually professional sports events over short, fixed periods that take out such cover and the idea of the GAA’s management committee would never have been countenanced.
Recently, it was revealed the All-England Lawn Tennis Club would receive £114 million arising from them being forced to cancel Wimbledon this July. In 2001, there was an insurance pay-out of £20m to the European Tour and the British Professional Golfers Association as it was postponed for a year due to the 9/11 attacks in the US.
Last year Central Council earned €36.122m in gate receipts, €33.463m in box, premium and catering, €14.117m in media coverage and €4.986m in sponsorship. Almost €29m of the gate receipts were accrued in the All-Ireland senior football and hurling championships excluding the provincial competitions.
The GAA would likely have had some recourse had concerts been organised for Croke Park this year but there were none scheduled before the outbreak. In 2008, MCD Promotions sued the late artist Prince for cancelling his show in Croke Park and the matter was settled out of court three years later.
According to the Croke Park’s financial accounts for 2020, “Economic risk is the risk of direct or indirect losses due to external events. The risk has been minimised by continuous monitoring of the market and competitors, adequate insurance cover and regular management review of the business. The group has insurances and structures to limit these risks and the board of directors regularly review, reassess and proactively limit the associated risks.”
