IRFU CHIEF EXECUTIVE Kevin Potts says the Union have been left with a €30m hole in their finances as a result of the Covid-19 pandemic.

The IRFU yesterday released their annual report and announced an operating surplus of €5.9m for the year ended 31 July 22.

However the Union also warned that without the special Government grant it would have suffered an operating deficit of €9m for the year. With this in mind, the IRFU is forecasting deficits over the next three years.

The impact of the Covid-19 pandemic coloured much of yesterday’s media briefing at Aviva Stadium on the day the IRFU held their AGM.

Potts reported that the Union’s net assets now stand at over €105m, up from €99m pre-Covid. However cash reserves, which stand at €66m, have taken a hit.  

“If the pandemic had not happened that cash should be at about €97m,” Potts explained.

“So our financial model is based in large part on forward-selling 10-year tickets and corporate boxes so when those funds come in we then release it over a period of time each year over the 10 years into our budget. It accounts for about 20% of our budget so that should be €97m, the difference was money that we had received for tickets that helped us get Covid, fortunately.”

The Union are exploring ways of managing that €30m gap in their finances.

“In simple terms, it is a hole,” Potts continued.

“We will have to manage. The hole was caused by Covid-19 and keeping operations and provinces going, in addition to the various cost-cutting programmes and redundancies we had, which haven’t been reinstated.

Our cost base has already been impacted permanently but there is effectively a hole in the cash but we believe we can manage. But that’s why it’s vitally important that we operate on a sustainable basis, not just ourselves but the provinces as well, that’s the key.”

The good news for IRFU staff is that the Union do not anticipate any further job losses. Twenty staff were made redundant last year as a result of losses incurred during the pandemic.

“We’re all fine at the moment, ourselves,” Potts added.

“The provinces, we’re going through and have gone through a series of financial sessions with each. Irish rugby and the provinces, financially now, have stabilised and we have no concerns in the short team.”

There was a word of warning for the women’s game, too. The IRFU are now spending €5.5m per year on the women’s game and this year, introduced professional contracts for women’s 15s players for the first time. However Potts outlined the Union will require ‘significant additional investment, which we do not have’ if they are to make the desired progress around this area in the years ahead.

Details of the Women in Rugby Report are set to be announced in the coming weeks.

“The new report which we will go through in a couple of weeks has a cost and that cost is not within our budget,” Potts explained.

“We are already predicting deficits. We will make this happen. But ideally we would like some external support from sponsors or whomever. But we are certainly not going to hold back getting the journey started. It’s balancing priorities.

“And just in terms of the men’s national team: they generate something like 80% of our revenue and if we drop the investment there and they become less competitive well then that will have a knock-on effect on our revenues.

“But I am confident that the investment we need to put into the women’s game arising from the report will be found but we will need, and are seeking, external assistance.”

During the briefing Potts also defended the IRFU’s ticket pricing structure and ruled out the possibility of the Ireland senior men’s team playing home Test games outside Aviva Stadium.

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