Munster Rugby redundancies reflect hit to revenues

Munster have initiated a slimming down process in its organisation is a reflection on the current economic climate

 

Munster Rugby’s decision to offer a Voluntary Redundancy Programme for staff members will have come as a shock to the province’s supporters but there is no indication the professional playing budget will be affected by the process.

All four provinces have been instructed to reduce their playing budgets by their paymasters at the IRFU and that is an ongoing process but Wednesday’s confirmation Munster have initiated a slimming down process in its organisation is more of a reflection on the current economic climate and the professional, high-performance rugby staff have been ringfenced from the programme, unless they wish to avail of it.

“Munster Rugby can confirm that we have initiated a Voluntary Redundancy Programme and have begun consultation with our staff,” a statement from Munster issued to the Irish Examiner read on Wednesday.

“Revenue has trended below forecast in the context of a challenging economic environment and this is the next step in aligning our cost base with income in order to establish a sustainable financial position.

“Our priority is to communicate with and support our colleagues first. Munster Rugby will be making no further comment at this time.” 

Chief executive Ian Flanagan called a staff meeting on Tuesday with employees dialling in from Cork, Limerick and also South Africa, where Clayton McMillan’s squad are in the middle of a two-match URC tour. They were informed of the province’s opening move to gauge levels of interest in those wishing to avail of a potential redundancy package.

The Irish Examiner understands just one question was asked of Flanagan following his address, and it was the obvious one to which anyone in that situation would seek an answer – if there are not enough voluntary redundancies taken, will that lead to compulsory ones?

The CEO’s response was to the effect of we have to wait and see, that the process would have to take its course. Like any organisation that has gone through such a process, employees will want to know the package available to them, based on their individual circumstances such as current salary and length of service.

It is expected to be around a two-week process before any next steps are taken with Munster Rugby then assessing which roles it would consider letting go.

Protecting the elite-level professional rugby staff and maintaining support to them to enable them to compete to the best of their ability is paramount, though there will be further reductions in the playing budget in line with those IRFU directives.

Munster’s focus on that objective has been to reduce its middle tier of non-international senior players while advancing the development of its Academy and National Training Squad groups, with the likes of flanker Sean Edogbo earlier this month the latest example of that, promoted from the second year of the academy from next season on a two-year senior deal. More youngsters are set to follow the Cobh powerhouse in the coming weeks, it is understood.

Similarly protected are the underage player pathways with staff financed in part from Munster’s now well-established annual fundraising dinners in London, New York, Dublin and Dubai.

Such are the current economic pressures that a lot is riding on the future of Munster’s next generation of players if this current programme of voluntary redundancies is not to be repeated.