Heineken Cup profits continue to rise
The 3% increase received coincided with Leinster securing its third European title when the presence of Joe Schmidt’s men and Ulster in the final secured an extra €2m for the IRFU.
Revenues set aside for Ireland are likely to be smaller this time around with Munster the only Irish representatives to make it through to the semi-final of the main tournament but the event’s worth to the game here and elsewhere remains abundantly clear.
Accounts just filed to the Companies Office by the Dublin-registered European Rugby Cup Ltd show that revenues increased by 3% from €50.3m to €51.6m in the 12 months to the end of June last (2012).
The returns show that after donations, the company made a profit of €100,000 and this followed profit of €100,000 the previous year. The firm is exempt from Irish corporation tax as the company “is engaged in an exempt activity”.
The accounts do not provide a breakdown of the percentages distributed to the unions and clubs but the figures show the company’s cash balance decreased from €7.1m to €6.9m and that accumulated profits last year totalled €2.3m.
The firm’s administrative expenses excluding donations stood at €6.6m — marginally up from €6.5m in 2010 — while the numbers employed by the company increased from 16 to 19 with staff costs increasing from €1.78m to €1.93m.
The tournament enjoys lucrative commercial deals with main sponsor Heineken and Sky that has the exclusive right to broadcast the tournament’s 79 matches per season live.
According to the directors’ report: “Maintaining turnover, which derives mainly from sponsorship and television income is key to the company’s continued success. The company’s ability to continue to attract major sponsorship and TV income is dependent on its ability to maintain its pre-eminent position of the European Rugby Cup competition.”
That ability has been left in doubt over disagreements as to the direction the tournament will take when the current seven-year accord expires with English and French clubs seeking a change to the format and qualification criteria and with the added complication of prospective TV deals added to the mix as well.
Talks between all parties have already been held on four occasions between September last and December, twice in Dublin as well as in Rome and London, but no common ground has been found leaving the matter deadlocked.
As things stand, there are no formal plans for a fifth meeting although there is the suggestion of one possible get-together prior to the end of the club season next month while numerous informal discussions took place during the Six Nations when officials met up regularly at the usual committee meetings and dinners.
The company has 13 directors, including Philip Browne, chief executive of the IRFU. The other Irish director is solicitor Peter Boyle. The figures show that at the end of June last, the company owed €5m to unions and club representative bodies.
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