MUNSTER RUGBY ANNOUNCED a forecasted deficit of €1.9 million for the year ending 30 June 2016 at their Annual General Meeting in Limerick yesterday.
Although slightly less that the previously forecasted €2.2m, the deficit leaves Munster in a dire financial situation that means the IRFU will be required to step in and bail the province out as they look to rebound under new director of rugby Rassie Erasmus next season.
It is expected that the IRFU will cover the vast majority of the deficit with a major cash injection.
By way of comparison, Munster returned a €333,000 deficity for the financial year ending in June 2015.
Speaking at the Munster Branch’s AGM in Young Munster RFC last night, the province’s financial controller Philip Quinn stated that reduced gate income and rising player costs were the main causes for the alarming forecasted deficit.
Quinn pointed to “economic factors and the geographic spread” as having played a major role, as well as highlighting that there had been a large number of unsuitable kick-off times for Munster games this season.
Surprisingly, it was revealed that 71% of Munster’s tickets sales come from outside the Limerick area, meaning the province is now reliant on much of their support base travelling some distance to Thomond Park.
More positively, Quinn reported that sponsorship was up by close to €400,000 and that the work of Munster’s commercial board has also resulted in the generation of €800,000 in this financial year.
Nonetheless, the forecasted deficit of almost €2m is of grave concern.
“We had a significant reduction in our gate income, some of which was down to the impact of the Rugby World Cup in addition to unfavourable kick-off times for certain high-profile games in Thomond Park such as Glasgow, Ulster and Leicester,” Quinn told munsterrugby.ie.
“Combined with the on-field performance, this resulted in a significant drop compared to previous seasons. Player costs continue to rise due to competition from overseas and in line with market demand.
“Supporters are at the forefront of our plans for the coming season with newly adapted ticket structures providing kids-go-free incentives and the ability to transfer unused tickets which will be of significant benefit to those unable to make unsuitable kick-off times.
“We also look forward to welcoming the Māori All Blacks to Thomond Park in November and I’ve no doubt it will be a huge occasion for the province with hospitality already close to selling out and strong ticket sales thus far.”
Quinn also promised that Munster can remain competitive in the field of recruitment as they look to return to former glories.
“We continue to be competitive on this front, as illustrated by the retention of the likes of Keith Earls, Conor Murray, CJ Stander and Simon Zebo earlier this season,” said Quinn.
“No different to previous years, our budgets allow for the recruitment of suitable overseas candidates and this will not change.”
Last night’s AGM saw Gerry O’Shea of Young Munster RFC elected president of the Munster Branch.
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Time to get rid of Garrett. Not many other places where a CEO would be kept on when the company/team etc they are in charge of has performed so poorly!
That’s not actually true, an MD is more likely to lose his job than the CEO. I don’t know if there is an MD in Munster, but the equivalent is definitely Foley. He is the one responsible for day to day generation of capital. A lot of the loss incurred by Munster is due to factors outside of the CEO’s control, he is unlikely to be shown the door unless there isn’t an upwards turn next year.
I love the way the say 71% of sales are fro outside of limerick, as if Limerick was the wrong place to put the ground on that basis . Of course the goal should be to have as many people from all over Munster travel to the games , that a good thing . The other important thing is to stop serving up the turgid shite they did last year
Of course Limerick was the wrong feckin place to put it.Cork is the capital of Munster and makes up half the population.Whatever fools that let this happen on day one need a good kicking.
Yes of course, 100% blame Limerick. Limerick is more central to Tipp, Kerry and Clare, easier access to Dublin and the airport…not to mention it has been the home of Munster rugby for decades. I don’t recall the Limerick factor being an issue when Munster were doing badly, now all of a sudden supporters are giving out about being based in Limerick as being an issue of contempt.
*when Munster were doing well.
I’m assuming that you are taking the piss anyway but cork makes up less than a third of the population of munster and munster doesn’t have a capital. Why are cork people obsessed with being the capital of things?
Rascal – Foley is no more the MD than Keith Earls is!
MD and CEO are interchangeable job titles for the same role. MD is a title in the UK tradition, CEO is in the US tradition. In either case, it is the top executive, answerable to the Board.
when was the last time muzzers was filled, dude?
Even in a poor season, thomond park gets in over 10-12k fans every single game. Rugby is bigger in limerick, and nothing you say can change that.
Can maybe sticking with Foley been a factor?
There’s no doubt Foley has played a big role in this. For whatever reason he hasn’t motivated the team to put their bodies on the line like Connacht have done this season. Beyond that Munster have looked hapless at times tactically.
All this plus messing with ticket prices translates to a lot of the Limerick crowd being disillusioned. And Limerick is Munsters bread and butter you lose them and you may aswell close up shop.
On the positive side a pro like Erasmus I believe can and will turn this situation around on the pitch.
And the kids go free is a fantastic move, at the least it will start filling the stadium again and generate some much needed atmosphere
The main problem is, that when rugby went pro. The main aim for the French and English was to develop a very strong and lucrative domestic league. Where the Celtic teams made Europe there main competition. Now France and England are flourishing. And the pro 12 is trying to catch up
The Irish Provinces are heading the way Scottish Football went after all the money came into the EPL.. It’s going to be hard for them to keep up with the money the English clubs have..
Maybe we should disband Munster rugby to let them see what it feels like to be considered a “burden on finances” – obviously a joke but there is irony at work – #doublestandards
@ Cathal have you considered the negative impact of McGahan and Penney or are is your memory so short that you think Munster’s current problems only occurred in the last 12 months?
I think the irfu should explore that possibility as munster are living on past glories, as evidenced by the ‘fans’ that have deserted the sinking ship in their droves.
Smc, when the game went pro there was no HC no PRO 12 , what in the name of God are you talking about ? The euro wasn’t in Europe never mind the HC so your saying that 21 years ago the French and the english had this all planned out so they would flourish now ,let me know what your smoking
Don’t think the Irfu can sustain four provinces, might have to make Munster a development province
No Leinster!
Cut their funding and turn them into a development province.
He’s quoted saying player costs and retention as a main factor, but listed internationals. Am I mistaken or are their contracts not paid for by IRFU anyway…?
As far as I remember, Earls, Murray, O’Mahony and Donnacha Ryan are the only Munster players with Central contracts, of which there are only 14 in total. So I’m sure players like CJ Stander and Zebo are on lucrative enough contracts.
In terms of players you may see more players being released and not replaced and one marquee player being brought in.
How many Leinster players are on central contracts? Essentially they got Robbie henshaw for free
The IRFU reduce central contracts from 30 to about 15 and everyone wonders why the Provinces haven’t made up the deficit. Examiner gave Munster’s player wage bill at €4.48m (up €620,000 on previous season). It would be interesting to see what the player wage bill is for the other Provinces.
Leinster didn’t get Henshaw for free. Henshaw exercised his freewill and moved to Leinster.
R. Kearney, Sexton, Heaslip, O’Brien, Toner, Ross, Healy…which I think does factor is selection to be honest.
Henshaw does not have a central contract yet.
I actually see reports that he does have a central contract but I can’t see anything definitive so apologies for that one, he may do.
I think Henshaw didn’t have a central contract up to now but will move to one from next season.
Listening to off the ball a few months ago apparently central contracts only contribute €90k to a players salary, the rest is paid by the province. It used to be approx €120-€140k but was reduced in recent years. So irfu are not only reducing amount of player in central contracts but also have reduced their contributions to them. No surprises the provinces are finding it tough on their finances
I think you have misunderstood that. Thats the contribution that the IRFU make towards the non-centrally contracted players (for example, IRFU would contribute €90k towards Rhys Ruddock’s Provincial Contract and Leinster would have to make up the rest).
The IRFU pay the full amount for centrally contracted players.
Their fancy new coaching tocket are hardly coming cheap, is foley in for a pay cut?
Paul. There is no free will when it comes to what women want. Have to wonder why Connacht and the IRFU did not get Henshaws Missus a “promotion” in the West?
Great movie. Love whales
Rascal – Leinster effectively got Henshaw for free, no money will be coming out of their coffers to pay his salary, money they can use elsewhere on strengthening their squad further… It is the principal reason that Connacht supporters were disappointed to see him leave, the fact that from this season on he’s centrally contracted and frees up funds for whoever he’s contracted to….
The RWC arguement is nonsense. Nearly every team in Europe claims increases in ticket sales from the interest generated from it.
Not correct. Every English club, bar Exeter had a decrease in attendance from previous season. Premiership clubs did not play during the World Cup, unlike PRO12 and French leagues.
I get ya, but your comment kinda contradicts itself.
How does it contradict itself. Overall attendances are down this season in the English Premiership. You say that ‘nearly every team in Europe claims increases’. In England, only one team has had an increase from the previous season.
Some PRO12 comparisions:
15/16 – 14/15
Leinster: 162,394 – 194,892 (-32.5K)
Ulster: 171,164 – 176,410 (-5.2K)
Munster: 125,079 – 144,973 (-19.8)
The dogs in the street know those pro12 attendance figure are sketchy to say the least.
Murray, any idea what that is as a % of total revenue? If my household budget ran a deficit if 2m we’d have a lot of questions to ask. I just wonder how poor that is on the whole.
Looks like the legendary Munster support is only good when they’re winning
And the Leinster support has always been AMAZING!
I’m not from Leinster eoin and every club has sunshine supporters but it’s becoming increasingly evident just how many Munster have since their dip in form in the passed couple of seasons it’s not something I’d gloat about as a supporter of Irish rugby I’d love to see all 4teams playing well
See 71%? So, 71% of season ticket holders have to travel to Limerick. Any downturn in form and drop off in attendance is magnified as people have to travel
Only 29% of tickets sold in Limerick that is really strange and pretty poor when Munster need the support now more than ever.
Not really, it’s a whole big myth about Limerick = Munster. Anyone who goes to Munster matches can see for themselves plenty of Clare, Tipperay and Cork fans are always present.
Its a reflection of the economic situation in Limerick. It would be interesting to know how many of the tickets are sold outside of Munster (for example, Munster natives living in Dublin and further afield for work reasons).
Built the stadium in the wrong city. Cork has the population and the money. Limerick hasn’t the critical mass.
Ah, turn it into a Cork team?
Limerick is more centrally located than Cork.
I think people need to realise people in Limerick mainly the working class who would have been a huge backbone of Munster rugby support in the early days have no interest in supporting a business who treated them so shabbily in the boom. They aimed at the corporate sector and the upper class people with very little loyalty. They are no reaping what they sow now.
The stat may not mean very much at all considering a good chunk of the city boundaries are in Co.Clare while major towns like Ennis, Shannon and Nenagh (not included in the stat) are just 30 minutes away which is closer to the city than much of county limerick like Newcastle West (included in the stat) .
@fergus… spot on, where are the gucci sunglass wearing blondes now that the team is shite? Probably driving to connaucht in the boyfriends range rover ready to shout “come on lambo!!”
That’s a fair point Rochelle , what’s your take on this story overall ?
Rochelle, the town mentionned aren’t really into rugby.
Solomon’s choice to be fair. Neither is the perfect fit. Limerick has the all encompassing rugby culture but not the money or population and Cork vice versa. Keeping two grounds was a pretty poor compromise though. How much money are they wasting annually on that fudge?
Exactly !
Liking the new Rochelle :-) Good point, well made sir
In fairness Munster have only been poor for 2 years, for the 14 before that they had unparalleled success. It looks like the right structure is in place for next season too so things are looking up. Its Leinster I fear for, their coaching ticket are clearly out of their depth and will run them in to the ground at this rate.
Unparalleled success? In relation to what? Toulouse? Leicester?
Winning the Pro12 league in regulation and losing the final to a superb Connacht squad is not exactly capsizing unless you’re shallow enough to blame Leo for the Champions cup group he inherited from Matt O’Connor?
Have ever tried to drive from cork to limerick on a Friday evening?,the road is barely wide enough for 2cars!!!,it could take up to 2.5hours!!!
So bad roads are causing Munsters downfall?
I love it !!!
Have you ever tried drive west of the Shannon outside Galway city? Do not even attempt to give roads as an excuse. We’re on glorified dirt tracks in Connacht.
Those roads in Connacht link small towns to a medium sized city. The N20 links a city of more than 200K people to a city larger than Galway.
And if you’re lucky, you’ll get through Tuam inside an hour on rush hour. The population isn’t relevant the roads aren’t fit for purpose.
The lack of an efficient and safe road between Cork and Limerick is a well known fact at this stage. Try getting through Charleville some day during matches. No one is blaming the road for low attendance’s but it is a huge issue for people based in the province for a variety of reasons.
Not called the wild wesht for nothing Jack.
We’d be absolutely goosed if we missed out on the Champions cup next year.
Apart from the previous mentioned reasons given and scapegoats mentioned I think it’s poor ‘marketing’ , Munster still has a very strong brand that is not being properly exploited . They need to develop other revenue streams , it’s not all about gate receipts .
Go on to Leinsters page and they’re promoting season tickets , go on to Munsters and they’re promoting the All Blacks game .
It’s very flat , there’s no buzz
How to create a buzz when people don’t bother. It’s not like if they have a large possible fans base near by.
An other reason too is how the pro rugby is managed in Ireland. POC wrote a brilliant article few weeks ago regarding the provinces recruitment. Leinster branch based itself on college rugby while Munster did it on their local clubs. With the new system, the clubs in Munster are pretty much gone and cannot develop players the way they used to, while colleges in Dublin have no issue whatsoever. If you can’t bring few good young players every year you need to recruit. Since Munster has little money it became a vicious circle.
But that doesn’t explain issues like deficits and income reductions
Yes it does. Fewer tickets sold means less revenue. If a company decided to invest x amount of money through a loan in order to fulfil future orders, but the orders are less compared to the forecast then the pressures can be unsustainable.
Sorry I thought you reply to my other comment. The point raised by POC was that Munster didn’t have new good players. You can’t attract people with sub standard game tbh
In the 2000-2010 period Munsters recruitment did not vary , nor did Leinsters . Perhaps Leinster made huge improvements in their academy , but Munster won HCs attracted huge followings and a lot were local players . So the lack of new blood coming through does explain the income deficit , it may somewhat explain the rise in wages , but decreasing the wage bill won’t solve the deficit . Munster need to exploit their brand better .
It will be interesting to see the financial results for te other 3 provinces. I would guess all three will also show deficits.
The fact that Munster has supporters based far from the stadium clearly doesn’t help. However this is not the only explanation IMO. A fair amount of people who would have paid a little fortune to be at a HCUP final have jumped from the bandwagon. The poor game played lately doesn’t help either. I was shocked when years ago, I found out that the new stadium’s ROI was hugely based on attendance at the time. You had to be absolutely blind to not know that rugby isn’t that a big deal (4th game played in Limerick, nearly non existent in Clare Tip and Kerry) and after a few bad games, everything will collapse. Before you have a go at me. This will apply to any teams with the same configuration
Yoman , you say that rugby is nearly non existent in Tipperary , God you haven’t a clue do you, I should know about tipp because I am from there , our own club in nenagh was founded in 1884 and you stated on another post that not much support comes from nenagh , Ennis etc, How long is your club in existence or do you even come from one ?
First of all my comment wasn’t disrespectful toward Tip or Clare. Rugby is non existent in those counties because last time I have checked GAA will drag most youngsters to Hurling and Football. I think you are the one who has no clue. If I follow your logic, Clare is big into Cricket because there is a team in Shannon. You want to bring the conversation at a personal level fine. Im coming from a place where we have rugby clubs… in every freaking village you buffoon (not less than 10 like in Clare). In South west of France, Rugby is bit like the GAA with real rivalry between villages. Why is it so important to you to know in which team I have actually played when I was young? Seriously?!
Before you start, check the facts: Rugby clubs in Rep of Ireland: 164 (66 in Munster according to the IRFU website) for a total population of roughly 4.7 million people. Compare this now to Aquitaine and Haute Garonne (South west provinces of France where around 4.5 millions people live and where rugby is popular): 480 clubs. Now. Do you understand why a team like Munster will struggle while a team based in South of France (beside the obvious bigger budget) will have a larger fan base?
Gas that there is a Tipperary man one of three former Munster players in the starting backrow of one of your South West France clubs! You’d think with such a large playing population that there would be more French players in the Top 14!
Every village in Wales has a rugby club, yet their profesional clubs are a disaster because thereis too much interest in the amateur game. At least Rugby & GAA are in different seasons here so they don’t conflict that much.
You are 100% right. Pro team in France will spend money on an international player and turn their noses on a 17 years old from a local team. But I don’t think it’s a valid point in this topic. Rugby is a minor game in Tipp and Clare compared to hurling. In Tipp you have very few rugby teams surrounded by GAA clubs. A Munster 1/2 between Clare and Tipp can attract 30k+ while Munster this year struggled to get 10k spectators in Thomond. Do you deny that?
God you are an ape , Google is all you know
Good man Declan. You see someone making a point, you disagree for whatever reason and then start to proceed with the insults. I never said that they were absolutely no rugby culture in Tipp, just that it’s a minor game compared to GAA. That’s all.Enjoy the sun, the long weekend and try to have a civil conversation next time.
Bruff, Nenagh, Thurles all have good underage setups. Rugby is booming in Tipp yoman. You’re simply wrong on this
3 clubs? Jaysus.
Nice one declan, the guy makes a pretty decent point you don’t like and you call him an ape, the facts suggest he’s not wholly wide of the mark. More people play basketball in Ireland then rugby ffs. Any parent who heard that concussion doctor talking about the damage to the brain that ultra physical sports like rugby can do, and is still letting their kid play rugby needs their head examined.
Yo man , tipp is the fastest growing county in Ireland in rugby and has been for quiet some time , have you looked at the amount of players that it has produced in the 20 to 25 years to all the limerick teams in the 90s in the AIL to the present day pro game , there is a huge contingent of rugby followers from tipp, example fethard gaa club in south tipp can’t get youngsters to play gaa as they are all gone rugby mad such to the fact that there is an underage rugby club after been founded there , tipp is the furthest thing from rugby been non existent , example 2 last year tipp hurling county semi final in thurles nenagh against drom, draw at full time at 4:00, Ireland v France in the World Cup at 5:00 , people left in their droves didn’t wait for extra time and I know this as I was one of them , by the way there was only 3200 people at a double header that day in thurles all staying at home to watch the French game
Sean 10 clubs in tipp and bruff is not one of them that’s in limerick , Cian the bull will kill you for saying bruff is in tipp ,
Cian. Fair play to those involved in those 3 clubs you ‘ve mentioned. It stills remain a minor game compared to GAA. Can we agree on that? I know 2 guys involved with Ennis RFC (they work with the young team). Nice guys, totally dedicated. Rugby is on the rise since 2006 but even them told me they are no where near a local team like Eire Og…. Let alone the Clare GAA
Declan. That’s great for Munster and the rugby in general but don’t compare a world cup decider against France and a club county semi between 2 towns. It just doesn’t draw the same interest. But overall I get your point. Rugby is on the rise in Tipp. At least it gives a choice for the kids .
Yoman , 20 years ago no one would leave a hurling game to go watch a rugby game World Cup or not but that has changed dramatically hard to believe it but it’s true , very very low attendances at hurling games anymore in tipp ,
Purely anecdotal Declan. 20 years ago club rugby pulled in huge crowds on Limerick & Dublin, now mostly viewed by 3 men and s dog. The club scene us in a hoop that’s to so much focus on the pro game. Famous old rugby clubs clubs are fielding far less sides then they used to.
Cashel are in 2a of the Ulster bank league
Yoman , look back at the posts you started the insult first not me
Rugby is a minor game compared to GAA in ALL the provinces !!
The bandwagon has come off the rails. I know plenty in Connacht who would travel down and support Munster during their golden age. Now they are staying put supporting Connacht which is great to see.
Amazing, great bunch of supporters those connacht lads.. really stick with their team through thick and thin
Money won’t solve Munster’s woes. They need world-class, proven coaches, not good ol’ boys appointed as coaches just because they are recently retired legendary players.
€1.9 million , there’s your problem . Spend another €45 million you don’t have and Munster will be as good as Saracens !
The reality is that Munster, leinster , etc are technically bankrupt.
Look, more people go to under 21 hurling championship games in Munster in total than go to Munster games in Total. The audience is just not there and we are kidding ourselves if we believe otherwise.
Here in south Dublin, where i now live, the biggest clubs are not rugby but GAA. So sooner or later, wealthy private investors must be let in, who can afford to bankroll these clubs as a hobby, otherwise the glory days will be gone for ever.
Irish people, and indeed the sports media, make this assumption that a winning elite team, must mean a sport is thriving at grassroots in an area. And by the same token, make this bizarre implication that all other sports must be on the decline. This is of course nonsense, especially where pro sport is concerned – when players are imported. The bandwagon lasts exactly as long as the glory, they rush off to the next winning team. Look at the Irish soccer team under trap playing in front of a half full aviva, now we’re doing well again and people are clamouring aboard the bandwagon again claiming they’re the ‘best fans in the world’ rubbish. Munster are the opposite, there best fans in the world turn up in tiny numbers for league matches, to the point where the false attendances given are bordering on hilarious.
I’m not convinced there’s enough cash to go around to support four professional provinces. Especially in the new age financial climate in rugby.
And it’s also unfair to the other provinces that badly needed money is being hemorrhaged by Munster and coming out of the communal pot everyone else is chipping into to keep the show on the road.
The IRFU should consider shutting down Munster and focusing on the three main provinces and if we have a change in fortunes down the line, we could perhaps consider utilizing the province as some sort of development province or part time operation if required, but there’s no point in everyone else being dragged into extinction with them.
What is fitzgeralds salary??
I’ve been to Thomand a few times this year but Friday night does not work. 6 or 7 lads that will watch anything rugby ruled out completely. Multiply that by say 4 times a year and thats 24 sales lost just from my gang. How can you get from Cork or Galway or Dublin on a Friday evening and then drive home late for the purposes of watching a match in driving rain in the dark. From a commercial point of view it’s the least attractive product offering out there. Surprised it’s not more of a deficit. Not Munsters fault but this has to be addressed especially from a Munster point of view with its very wide catchment area.
One man will change Munsters ill fortune. One man will stand up and be counted once again and rise like a phoenix from the ashes of a great career. Paul O Connell will become coach and win back to back champions cups with the budget of a very small shoe string formerly owned by Peter Stringer.