Business of sport conference: The IRFU chief executive, Philip Browne, has stated the union deficit will deepen over the coming years but is manageable provided the redevelopment of Lansdowne Road remains on schedule for completion by early 2009.
Speaking at the second annual Business of Sport conference in UCD yesterday, organised by A & L Goodbody, Browne explained how Irish rugby has dealt with professionalism over the last 10 years.
Despite generating €31.9 million from the professional game in 2004, the union ended up with a €3.5 million deficit that Browne warned will continue as the IRFU take a "hit" over the coming years to ensure the national senior side remains competitive on the world stage.
He used the comparison of the last two World Cup cycles to show how much investment is required to maintain high standards. In 1999, a win ratio of 32 per cent was achieved after an investment of just under €10 million. By 2003, however, the team doubled that win ratio after a substantially greater investment of €25 million.
"The challenge is making sure the cost of running the professional game is profitable," said Browne. "This is essential as it funds the game at club and schools level.
"Regarding the debt, we are willing to take the hit over the next few years because the increased revenue from the redeveloped stadium will offset the deficit.
"Limited stadium facilities are a huge issue to us as without the correct facilities we really have no future in terms of generating revenue," he continued. "This is the financial engine for rugby and soccer and benefits the economy in general. A recent survey (commissioned by the Irish Sports Council) showed €51 million was raised for the whole economy during England's visit to Lansdowne Road two years ago.
"The professional game will undergo a further phase of volatility over the next number of years before calming down. We have to make sure we cope with that to survive," said Browne.
The IRFU must raise €68 million of the €291 million required for the Lansdowne Road revamp. The Government are expected to come up with €191 million, the FAI with another €32 million.
The new FAI chief executive, John Delaney, shared the podium with Browne yesterday on the issue of funding in sport but he only touched on the stadium scenario by commending the GAA for suspending Rule 42 while Lansdowne Road is being redeveloped.
GAA president Seán Kelly could not be present so the association was represented by finance committee chairman Jimmy Dunne, who outlined the process of renovating Croke Park at the cost of €255 million from 1991 to the completion of Hill 16 earlier this year.
In this opening session all three speakers noted gate receipts are the main revenue source for their organisations.
Representatives from every sporting body in Ireland attended the one-day conference, where the issues of sponsorship, resources for local sport and sports psychology were also addressed.
Other speakers included ERC chief executive Derek McGrath, Armagh footballer Enda McNulty, former Dublin manager Tommy Lyons and the 1996 All-Ireland winning hurling manager with Wexford, Liam Griffin.
