Free-to-air plan 'could devastate Irish rugby'

Banning broadcasters from charging viewers to watch Heineken Cup and Six Nations clashes could devastate Irish rugby for generations to come, rugby chiefs warned tonight.

The Irish Rugby Football Union (IRFU) told an Oireachtas Committee that Communications Minister Eamon Ryan’s free-to-air plans could lead to a loss of up to €12m in revenue and an exodus of top players.

A motion was passed that the union should have independence to deal with broadcasters as they saw fit after chief executive Philip Browne claimed the proposals could spell the end of the game’s mass appeal.

“We understand the desire to have free-to-air for all but this is utopia in professional sport,” he said.

“Our finances are on a knife edge – we do not generate massive surpluses.”

Under the rules, Heineken Cup rugby games involving an Irish team would be barred from pay-per-view channels.

All of Ireland’s games in the Six Nations rugby championship would be broadcast free and live, rather than on a delayed feed, if the European Commission approves the plan.

Six Nations chief executive John Feehan told the joint committee on arts and sport the move would dramatically impair rights values for his tournament.

“This is a corruption and distortion of the market,” he said.

“At worst, it could prompt the abandonment of the current collective approach, in which case countries like Ireland would be the clear losers, given the level of subsidy they receive under the current arrangements.

“Instead of the €11m it currently receives each year from the Six Nations, the IRFU would instead be lucky to receive €3m per annum.”

The IRFU claimed the move could also seriously threaten an estimated annual contribution of €375m made by rugby to tourism, retailing and transport firms across the country.

Green senator Dan Boyle defended his party colleague’s proposals.

“We’ve learnt the price of everything and the value of nothing. This has all been about money,” he told the committee.

“Much of the popularity has been brought about by free-to-air TV.”

But former sports minister John O’Donoghue warned the move could seriously damage to Irish rugby.

“The commercial reality is that the success of a game and the success of a sport and the success of a team is directly correlated to the amount of funding that’s available,” he said.

“Is it not the case that what we’re really talking about here is killing the golden goose that lays the golden eggs?”

Mr Ryan, who is set to appear before the Oireachtas committee in coming weeks, has denied professional Irish rugby is under threat by the proposals.

The minister said broadcasting was just one steam of revenue for the IRFU and claimed most money came from other avenues such as sponsorship, gate receipt and advertising.

Under EU regulations, countries can designate certain sports and cultural events as of national importance in order to make them available on free-to-air television.

Events already designated as of major importance to society include the Olympics, the All-Ireland senior football and hurling finals and Ireland’s games in the European football championship and World Cup.

Ireland’s games in the rugby World Cup finals, the Irish Grand National and the Irish Derby must also be aired free of charge.