IRFU CEO KEVIN Potts said that the current financial model for the Rugby World Cup is “not working” due to the major impact the competition has on unions’ finances.
The IRFU this evening announced a deficit of €18.4 million for the 2023/24 financial year, which was due in large part to the impact of the 2023 World Cup, where Andy Farrell’s men were knocked out in the quarter-finals by New Zealand.
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The Irish union confirmed that the net impact of last year’s World Cup was €12.1 million, comprising the additional costs of Andy Farrell’s side preparing for and being at the tournament, as well as the loss of revenues caused by not hosting November Tests in Dublin in 2023.
Despite the big deficit, which was €1.4m less than originally forecast, the IRFU remains in a financial position which is the envy of most other unions.
The IRFU has no debt, has cash and cash investments to the tune of €69 million, as well as net assets of €87 million. The union is budgeting to return to a breakeven cash position in the current financial year.
While the IRFU’s deficit for 2023/24 was as expected, Potts said the financial challenge of the World Cup every four years is something that World Rugby is considering.
Potts revealed that there is no prize money on offer for success at the World Cup.
“So things like player bonuses and those types of things are a cost for the relevant participating unions,” said the IRFU CEO. “There’s no prize money.
“It’s a value transfer from the unions to the tournament. We get some funding over the following years out of World Rugby but it doesn’t match what it costs us. It’s also being used to develop the game globally.
“It’s not working and World Rugby are aware that we and other unions are challenged by this and we need to look, is there a better way? We certainly can’t continue to have World Cups every four years that are having such a major impact in that year on our finances.
“But World Rugby are aware of that, to be fair, and that’s one of the reasons they’ve been working with us and we will hopefully, collaboratively, find some solutions.”
IRFU CEO Kevin Potts. Morgan Treacy / INPHO
Morgan Treacy / INPHO / INPHO
The IRFU confirmed that it has continued to increase its spending on women’s rugby, with another jump of €2.6 million up to a total of €8.3 million.
While the Irish union is clearly in a strong financial position, recent reports from elsewhere in the game show that rugby is facing huge challenges.
Indeed Potts warned that unless the sport can improve its revenue, unions like the IRFU won’t be able to maintain current investment levels back into the game.
“There’s a real challenge in our game globally at the moment,” said Potts.
“All of the top high performance unions are challenged with rising costs but the revenues are not increasing at the same rate.
“The next TV broadcasting cycle commences in 2026 and the Nations Cup is probably the next big initiative to try and generate more fans and more revenues. It’s a challenge for all unions.
“World Rugby initiated a working group a number of weeks ago, which we welcome, where the top 12 unions, the CEOs, chairs and treasurers are sitting with World Rugby and are there things we can do together to help us with costs or help us with revenue generation and there a number of initiatives that are about to kick off in the New Year.
“So collaboratively we need to work together in the game to generate more revenue and I guess if we don’t, we will have to review our programmes, while at all times protecting the three priority areas which is our men’s national team, given they generate 80% of our revenue, the pathways that feed them including our provinces, the need to accelerate our women’s programme and of course building our clubs.
“Those three priorities can’t be compromised, so like any business we can only afford to spend what we have or what we receive and it’s a challenge for the sport.”
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'We can’t continue with World Cups having such a major impact on finances'
IRFU CEO KEVIN Potts said that the current financial model for the Rugby World Cup is “not working” due to the major impact the competition has on unions’ finances.
The IRFU this evening announced a deficit of €18.4 million for the 2023/24 financial year, which was due in large part to the impact of the 2023 World Cup, where Andy Farrell’s men were knocked out in the quarter-finals by New Zealand.
The Irish union confirmed that the net impact of last year’s World Cup was €12.1 million, comprising the additional costs of Andy Farrell’s side preparing for and being at the tournament, as well as the loss of revenues caused by not hosting November Tests in Dublin in 2023.
Despite the big deficit, which was €1.4m less than originally forecast, the IRFU remains in a financial position which is the envy of most other unions.
The IRFU has no debt, has cash and cash investments to the tune of €69 million, as well as net assets of €87 million. The union is budgeting to return to a breakeven cash position in the current financial year.
While the IRFU’s deficit for 2023/24 was as expected, Potts said the financial challenge of the World Cup every four years is something that World Rugby is considering.
Potts revealed that there is no prize money on offer for success at the World Cup.
“So things like player bonuses and those types of things are a cost for the relevant participating unions,” said the IRFU CEO. “There’s no prize money.
“It’s a value transfer from the unions to the tournament. We get some funding over the following years out of World Rugby but it doesn’t match what it costs us. It’s also being used to develop the game globally.
“It’s not working and World Rugby are aware that we and other unions are challenged by this and we need to look, is there a better way? We certainly can’t continue to have World Cups every four years that are having such a major impact in that year on our finances.
“But World Rugby are aware of that, to be fair, and that’s one of the reasons they’ve been working with us and we will hopefully, collaboratively, find some solutions.”
The IRFU confirmed that it has continued to increase its spending on women’s rugby, with another jump of €2.6 million up to a total of €8.3 million.
While the Irish union is clearly in a strong financial position, recent reports from elsewhere in the game show that rugby is facing huge challenges.
Indeed Potts warned that unless the sport can improve its revenue, unions like the IRFU won’t be able to maintain current investment levels back into the game.
“There’s a real challenge in our game globally at the moment,” said Potts.
“All of the top high performance unions are challenged with rising costs but the revenues are not increasing at the same rate.
“The next TV broadcasting cycle commences in 2026 and the Nations Cup is probably the next big initiative to try and generate more fans and more revenues. It’s a challenge for all unions.
“World Rugby initiated a working group a number of weeks ago, which we welcome, where the top 12 unions, the CEOs, chairs and treasurers are sitting with World Rugby and are there things we can do together to help us with costs or help us with revenue generation and there a number of initiatives that are about to kick off in the New Year.
“So collaboratively we need to work together in the game to generate more revenue and I guess if we don’t, we will have to review our programmes, while at all times protecting the three priority areas which is our men’s national team, given they generate 80% of our revenue, the pathways that feed them including our provinces, the need to accelerate our women’s programme and of course building our clubs.
“Those three priorities can’t be compromised, so like any business we can only afford to spend what we have or what we receive and it’s a challenge for the sport.”
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2023/24 Accounts CEO Finances IRFU Kevin Potts