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    Munster chief reveals cost of success

    Irish Examiner

    7 November 2006

    @@@@SPAN style="font-weight: bold;">Munster chief reveals cost of success@@@@/SPAN>

    By Declan Colley
    THE COST of running the Munster rugby team and all its ancillary activities has now reached €6.6 million per year, chief executive Garrett Fitzgerald revealed yesterday.

    And he admitted that while the province was “holding its own” in generating income, winning the Heineken Cup last season resulted in no financial windfall, other than what the Munster Branch could generate by selling the ‘Munster Rugby’ brand.

    Speaking at the first of two breakfast briefings in Nenagh, Fitzgerald said the branch was in the process of appointing a new sales and marketing manager with the aim of creating new revenue streams to offset rising costs.

    He told the packed attendance at the briefing, which was raising money for the North Tipperary Hospice service, that the fact there was no bonus for Munster’s victory was “a challenge”.

    Describing Munster rugby’s biggest assets as goodwill and their massive support, he added that in financial terms the main sources of income were gate receipts, sponsorship and hospitality events and revenue generated through the Supporters Club.

    He said gate money last year generated €1.4m for the province; sponsorship brought in €750,000.

    However, he said that out-goings were increasing and the overall cost of running Munster rugby now included domestic costs of €960,000, while the province’s Academy added another €250,000.

    However, he maintained that all these things served to strengthen the game throughout the province and said there would be other new initiatives such as the appointment of a new domestic games manager and a new cadet players initiative.

    The Munster chief executive said it was imperative a variety of new and potential revenue streams were either instigated or looked at.

    “Things such as the book about the Heineken Cup triumph – ‘Road to Glory’ – or the new DVD – ‘The Brave and The Faithful’ – reflect this, while we are looking into setting up a Munster Supporters Club in America,” he said.

    The Temple Gate Hotel in Ennis hosts the second briefing today at 8 am. Entry is by pre-paid ticket.<!-
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    #2
    How much is winning the champions league worth ???? V interesting article. 1.4m doesn't sound like a huge amount of gate revenue but I suppose ML attendance really needs to be increased to up this figure. I wonder how much gate money munster supporters give to other clubs, I bet its very high; lets hope that when the new TP is completed they reciprocate !!!

    Comment


      #3
      I think the ERU or the IRB or whoever takes a massive chunk of gate receipts from the HEC.

      Comment


        #4


        I am a bit suprised at the 750,000 per year sponsorship.I would think it is a bit on the low side considering Munster's profile.Does this include both Cantabury and Toyota?


        I distrust Camels and anybody else that go for 7 days without a drink

        Comment


          #5
          The home quarter final against Perpignan was crucial in the
          €1.4m. Without that, the gate money would even have been
          lower. Shows how important the home QF is. But in 2007,
          where to have it?
          "I don't believe in fairytales," O'Connell once told me, "even though it feels like I've been lucky enough to live through a few. However it ends, I'll feel lucky."
          Donald McRae, Guardian Rugby, October 2015

          Comment


            #6
            Thought the clubs only got the gate money for the pool games and q/f's and that the ERC collects the cash from the semi and final for splitting up later.
            Excellence is hard to keep quite - Sherrie Coale

            Comment


              #7


              Very suprised by a few of those points and figures. I'm sure I read somewhere that the Toyota deal was based on results. I thought winning the HC was going to increase the value of the deal. Maybe the money for the HC win doesn't kick in till this year.


              Gate receipts seem very low. The HC QF in LR was a sell out and i was under the impression that if we moved from our home ground to a bigger stadium that we got in an increase in gate receipts. Rough guess would be 30,000 tickets @ €25 = €750,000. The full members of the supporters club would bring in €250,000 in season tickets. These are rough guess's but that would mean about €500,000 for all our home games in both the HC and CL. This season the supporters club should bring in over €500,000 in season tickets sales (again a rough guess).


              I thought the response from the branch to marketing and selling our HC success was very slow. Virtually no merchandise for 3 or 4 months after the final. I understand the delay in the DVD for the Xmas market but other merchandise should have been made available earlier to cash in on the win straight away.


              "Fitzgerald said the branch was in the process of appointing a new sales and marketing manager with the aim of creating new revenue streams to offset rising costs" - Is this a new position or has someone paid the price for some of the failings?
              \"God gave me the talent but the forwards gave me the ball\" - Jannie De Beer

              \"I hesitate to use words like spiritual or religious, but to see what rugby means to Munster people is very moving\" Shaun Payne

              I look back on 2008 at the Millennium Stadium as the highlight of my career because, although being capped by New Zealand and playing for the All Blacks was fantastic, this was special. - Doug Howlett

              Comment


                #8
                What about television revenue, surely there must be a few quid coming in from SKy and Setanta

                Comment


                  #9


                  Having no majorfinancial reward for the winning of the HC is disgraceful. Look at the amount of money that Munster have generated for the ERC &amp; co. The final alone must have netted at least £3 million in ticket sales.

                  Comment


                    #10


                    Originally posted by Kerry-Exile
                    What about television revenue, surely there must be a few quid coming in from SKy and Setanta

                    I would have thought that TV money goes into a pool and is possibly paid to the IRFU rather than the clubs but maybe someone else knows for sure. Isn't that what the English clubs were complaining about.
                    \"God gave me the talent but the forwards gave me the ball\" - Jannie De Beer

                    \"I hesitate to use words like spiritual or religious, but to see what rugby means to Munster people is very moving\" Shaun Payne

                    I look back on 2008 at the Millennium Stadium as the highlight of my career because, although being capped by New Zealand and playing for the All Blacks was fantastic, this was special. - Doug Howlett

                    Comment


                      #11


                      Originally posted by Kerry-Exile
                      What about television revenue, surely there must be a few quid coming in from SKy and Setanta

                      Goes straight to the IRFU. Munster get no cut.


                      My computer thinks I'm gay
                      What's the difference anyway
                      When all the people do all day
                      Is stare into a phone

                      Comment


                        #12


                        The rewards for winning the HEC will be seen this year and next year. Ticket prices went up and hardly anyone noticed, no one complained.


                        MRSC Membership and season ticket sales have rocketed (another factor in these increases undoubtedly is the great work done by the MRSC in looking after it's members over the last few years)


                        Various contracts are up for renegotiation. Expect that €750,000 for sponsorship to rise a bit next season.

                        Comment


                          #13
                          Originally posted by Skyhawk


                          Having no majorfinancial reward for the winning of the HC is disgraceful. Look at the amount of money that Munster have generated for the ERC &amp; co. The final alone must have netted at least £3 million in ticket sales.


                          Gate receipts for the semi final and final, after the ERC have their share, are split up between the participating teams. Munster's share of this money goes directly to the IRFU

                          Comment


                            #14
                            That seems a bit unfair, if it is being redistributed then it should be done proportional to the amount the province has been aired

                            Comment


                              #15


                              **Edited - unnecessary and looking for reaction.**


                              Ruck


                              My computer thinks I'm gay
                              What's the difference anyway
                              When all the people do all day
                              Is stare into a phone

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