Nov 29,2024
The IRFU has recorded a deficit of €18.4m in its latest accounts, which were presented at its continuation Annual General Meeting today.
The deficit was €1.4m less than forecast by the union last year, with the loss of the Autumn Nations Series matches in 2023 due to the World Cup impacting significantly on the finances.
The cost of preparation and taking part in the World Cup, in which Ireland lost in the quarter-final, was also part of the deficit.
The net impact of the World Cup amounted to €12.1m and the accounts presented today covered the year up to 31 July, 2024.
The union's income in the year was €79m, down from €92m the previous year, a direct result of not hosting November internationals.
"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?" Potts said of the Rugby World Cup funding model, which does not include any prize money for the participating countries.
"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.
"Things like player bonuses and those types of things are a cost for the relevant participating unions. "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."
The IRFU’s balance sheet shows net assets of €87m, with cash and cash investments of €69m and no debt.
Potts (above) added: "The imminent launch of the Nations Cup in 2026 provides further reason to be optimistic for our game.
"However, as a Union, without further additional revenue streams, of which there is no certainty, we simply will not be able to maintain current levels of investment across the game.
"You could easily challenge us, 'why don't you just cut your costs in that year?’ but we won’t do that. We’ve got to keep our schools, clubs, and professional game going so that’s the impact.
"This year’s Autumn Nations Series games have generated significant funds in order to compensate for that."
In the current year, the union is budgeting to return to a breakeven cash position.
