The IRFU has reported a deficit of €18.4 million for the 2023/24 financial year, mostly due to the impact of the Rugby World Cup. Despite this, the union remains in a strong financial position with no debt, €69 million in cash and cash investments, and net assets of €87 million. The IRFU is aiming to return to a breakeven cash position in the current financial year.
IRFU CEO Kevin Potts highlighted the financial challenges that come with hosting the World Cup every four years. He emphasized that there is no prize money for success at the World Cup, and the costs of player bonuses and other expenses fall on the participating unions. Potts stated that the financial model for the Rugby World Cup is not sustainable and needs to be reevaluated to reduce the impact on unions’ finances.
Additionally, the IRFU has increased its spending on women’s rugby, showing a commitment to developing the sport across all levels. Potts acknowledged the global challenges facing rugby, with rising costs and stagnant revenues posing a threat to future investments in the game. He mentioned that World Rugby has initiated a working group with top unions to explore ways to increase revenue and reduce costs, including upcoming initiatives in the New Year.
Potts stressed the importance of protecting key areas such as the men’s national team, pathways for players, women’s rugby, and club development. He highlighted the need for collaboration within the sport to generate more revenue and ensure the sustainability of rugby programs. Without increased revenue, unions may have to reevaluate their investments while prioritizing key areas essential for the growth and success of the sport.
