THE INTERNATIONAL Rugby Board has significantly reduced their tournament fees for Rugby World Cup 2015 and 2019. Ireland has made an application to co-host both events, which have been reduced by €23.75 million and €28.5 million respectively. The decision was made to reflect the current economic environment and subsequent feedback from the nine member rugby unions who are tendering to host the tournaments.

"The IRB Council has agreed that the minimum tournament fee for 2015 be reduced to €95 million from €119 million and that the minimum tournament fee for 2019 be reduced to €114 million from €142.5 million," said IRB Chairman, Bernard Lapasset. "The IRB has also agreed to incentivise the host unions by building in a profit share formula for any tournament surplus it generates that exceeds the minimum guarantee . . .

"In light of the current economic environment the IRB has decided to take a pragmatic approach on the tournament financial modelling to assist unions in their future discussions with their respective governments and their delivery of competitive tenders."

The IRB have clearly been listening to their members despite a recent independent Deloitte report on the economic benefits of hosting Rugby World Cup highlighting the fact that it is one of, if not the most, cost effective major sports events in the world. RWC is estimated to have the potential to generate up to €2.5 billion in economic benefits while capital expenditure costs are among the lowest for an event of this magnitude.

However, the IRB are still looking to achieve a tournament fee of €119 million from 2015 and €142.6 million from 2019. The revised minimum requirements are just that, minimums and there is nothing to prevent one union bidding the minimum guarantee of €95 million for RWC 2015 and another bidding €119 million. The host unions for Rugby World Cup 2015 and 2019 will be decided next July.