IRFU may come to troubled Munster’s aid with cash bailout

Munster look set to receive a significant cash injection from the IRFU to help kick-start a much-needed improvement on the pitch, Donal Lenihan writes in today’s Irish Examiner.

The IRFU have already sanctioned this week’s appointment of Johan Erasmus on a three-year contract starting this July as Munster’s first director of rugby.

Yet the IRFU is prepared to give the two-time former European champions a further boost when the budgets for the four provinces are finalised this week.

“The financial challenges facing Munster at present have been well documented with a budgeted loss of around €1.5m for the season set to rise to at least €2.3m when reported at the forthcoming AGM of the Munster Branch,” Lenihan writes.

“It appears help may soon be at hand. The IRFU, or more specifically its finance committee, under the scrupulous direction of chairman and former Lion Tom Grace, has finally recognised the financial challenges facing Munster at present are having a direct impact on the ability of the team to compete in an ever-changing European market.

There are strong indications Grace and his committee, at Munster’s instigation, will offer a cash injection of close to this season’s reported deficit, with very few onerous strings attached, to kick-start a revival in the province’s fortunes.”

The IRFU budgetary discussions come as Munster chief executive Garrett Fitzgerald warned of a fresh €500,000 shortfall if the province fails to qualify for next season’s Champions Cup.

With Munster currently seventh in the PRO12, the chief executive believes failure to secure the top-six finish necessary to make the pool draw for next season could cost “in excess of €500,000” at the turnstiles.

“You have to be looking at that, and that’s just being practical and just taking it from experience. But you could be lucky, if you didn’t make the Champions Cup, with the draw as well,” Fitzgerald said.

Aside from half a million euro riding on the next 160 minutes of rugby, so too, then could Fitzgerald’s future as chief executive.

“When you have your end of season or half-season review done you have certain KPIs (Key Performance Indicators), six or eight KPIs for the year.

“Certainly our financial targets will be down this year, on gate income,” Fitzgerald said.

“Ultimately I am responsible for everything, that’s where the buck stops.”

He added: “What I can honestly say is the IRFU have been very helpful and understanding of the situation we’ve been in but at the same time we’re running a business.

“You’ve got to get the balance between who you bring in and meeting your budgets and targets. The IRFU have been really helpful but at the same time they demand results as well.”