Munster's success on the rugby pitch this season is likely to translate into an improved financial performance for its home ground, Thomond Park in Limerick.
The ground’s owner, Thomond Park Stadium Company, lost €1.52 million in the 12 months ended June 30th, 2016, of which €1.4 million was accounted for by writing down the venue’s value.
The Munster Branch of the Irish Rugby Football Union (IRFU) confirmed that the stadium company had a cashflow shortfall of €150,000 during that year, but added that it would be “more than offset” by a surplus for this season.
Munster have performed well this season, and are due to meet Llanelli Scarlets on Saturday in the final of the Guinness Pro12 at the Aviva Stadium, Dublin, after defeating Ospreys by 23-3 in Thomond Park at the weekend. The province made it to the European Champions Cup semi-final last month.
The latest accounts for the Thomond Park company show that shareholders’ funds fell to €3.9 million on June 30th, 2016, from €5.4 million 12 months earlier, reflecting the cashflow deficit and the write-down.
The figures show that combined losses were €10.18 million at the end of June last year. This represents total depreciation in Thomond Park’s value since the company was established ahead of the ground’s redevelopment.
Extra games
Thomond hosted a number of extra games this season, partly due to the province’s progress in competition. They included two knockout matches and a Maori All Blacks clash. The extra fixtures and an improved turnout at regular matches doubled attendances in the 2016/17 season. As a result, licence fees paid to Thomond Park Stadium Company by the Munster branch increased, along with ancillary revenues such as bar and catering income.
Those fees came to €758,815 in the 12 months to the end of June last year, down from close to €800,000 in the previous season. Munster Branch pays the fees in return for using the stadium for matches.
Thomond continued to carry a large debt, €23.4 million, primarily the proceeds of 10-year tickets sold in 2008 to pay for the stadium’s redevelopment. That is mostly interest free, and the accounts state that the directors understand that repayments “will be on a basis appropriate to company cashflows”.
Munster Rugby acknowledges that Thomond Park still depends heavily on licence fees for the moment, but stresses that it is striving to add extra sources of revenue.
The stadium company is working with Onside Sponsorship supporting Munster Rugby at Thomond Park on the possibility of doing a naming rights deal.
