Munster Rugby AGM Financial Update

3rd June 2016 By Munster Rugby

The Munster Branch Annual General Meeting took place at Young Munster RFC last night with club representatives from around the province in attendance.

Munster Rugby announced a forecasted deficit of €;1.9m for the financial year ending June 30th 2016, representing an improvement on a recent forecast of €;2.2m. Although forecasting a €;400,000 deficit at last year’s AGM, the final figures for the year ending June 2015 showed an improved deficit of €;333,000.

Munster Rugby Financial Controller Philip Quinn cited reduced gate income and rising player costs as the primary reasons for the forecasted deficit.

In particular, economic factors and the geographic spread contributed to reduced gate income. With the province heavily reliant on a travelling support base where 71% of tickets sales are generated outside of the Limerick area, a number of unsuitable kick-off times played a part in the reduction this season.

Elaborating on the deficit, Quinn commented, “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. 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 Maori 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.”

There was positive news on the sponsorship front which increased by just under €;400,000 and the Munster Rugby Commercial Board continues to bear fruit on all fronts with Academy sponsorship, Domestic Game sponsorship and the Patronage Programme amongst other initiatives generating just short of €;800,000 within the current financial year.

With the High Performance Centre in UL on target for completion in August, it was again highlighted that the cost of the build is being borne by UL with the new facility then leased back to the province for an annual fee.

Quinn also stated that the province continue to work closely with the IRFU and have their ongoing support, adding, “We have a very positive relationship with the IRFU and as always are in on-going communication with them. We recently submitted our revised five-year plan and are awaiting feedback on this.”

On the subject of player recruitment, Quinn confirmed, “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. No different to previous years, our budgets allow for the recruitment of suitable overseas candidates and this will not change.”