Union’s finances face tough 12 months

REVENUES in the Irish Rugby Football Union have increased six-fold to €55 million in a decade.

But after a momentous year in which the organisation posted profits of €5.2m, the healthy situation could change for the worse in the next 12 months.

The absence of autumn internationals in this World Cup year will impact unfavourably on the finances, warned outgoing treasurer John Lyons. But Mr Lyons said he was well pleased at the results posted for the year up to April 30.

He said a very substantial contribution to the improved surplus was made by the numbers attending the matches at Croke Park and a further substantial contribution was made by the performance-related income generated by the success of the national and provincial teams.

Mr Lyons has stepped down and will be replaced in his honorary treasurer role by former Irish international Tom Grace, but he has left the union in no doubt that a healthy environment can be sustained.

The IRFU, unlike other northern hemisphere unions, has been very successful in managing its finances once they got to grips with the professional era which began in 1995.

Chief executive Philip Browne said it had been a delicate balancing act trying to sustain success on the field of play and ensure that finances did not spiral out of control.

Mr Browne noted that the cost of operating a Heineken Cup provincial squad was now in excess of €5m.

“While the IRFU are in a position to pick up the cost of players’ salaries and some of the costs associated with technical staff, the reality is there is a significant balance to be covered by revenues generated locally in the provinces.

“The good news is that the performances of each of the provinces in a commercial sense has improved considerably.

“That has been attributable to team performances, competition quality and stability.

“It was inevitable that the professional staff led by chief executives in each branch should be directly employed by the IRFU and form part of the senior management team, giving them a greater input into policy development.

“The recent successful commercial deals all demonstrate the progress that has been made in off-field activities at provincial level.

“This is critical as it is simply not possible for the union to cover the entire cost of the professional teams and look after its other responsibilities,” he said.

Mr Browne revealed that playing numbers in Ireland had surged over the 100,000 mark. While clubs, particularly the first division outfits, are less than happy with the IRFU’s handling of the domestic game, the chief executive pledged that more would be done to sustain an upgrade in the game at that level.

He said recruitment and retention of adult players and volunteers, and the development of artificial and floodlit pitches, were high on the union’s agenda.

He recognised that the needs of players have changed, saying: “As a national governing body we must keep pace with the changing social situation and provide a structure that suits everyone’s lifestyles.”

The new president of the union is Cork man Der Healy, the first-ever representative of the Highfield Club in Cork.

Mr Healy became the 120th president of the union, in a remarkable administrative career with his club, province and the IRFU.

Mr Healy was a noted player with Highfield and led them to competitive success in the mid-70s.

Said Mr Healy: “It is a great honour. I look forward to the season ahead, and it is a particularly challenging season with the World Cup coming up.”