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    AGM (Finance) News

    Munster Rugby ‘financial’ future is bright


    THE MUNSTER rugby AGM for 2014 took place last night, June 5 at UL Bohemians RFC Limerick. The main order of business on the night was the election of Mick Goggin (pictured) as Branch President for the incoming year.
    Other items in the agenda included last season’s accounts as well as an update on the redevelopment of Irish Independent Musgrave Park.
    Speaking to the media ahead of the AGM itself, Philip Quinn, Financial Controller of Munster Rugby outlined the year just gone, as well as announcing a restructuring of the Thomond Park loan repayments.
    “For the year ending June 30 2013, we showed a cash-flow of €0.8m. That changed about 170k from what I said at the AGM last year. So it was actually 170k worse” Quinn said.
    “We have been in negotiations with the IRFU for some years on our loan commitments to Thomond Park. We were in an agreement to pay a million a year at the moment. That has been restructed now to mean Munster only pay 100k a year. The deal was originally until 2017, but has now been extended to 2027. This has given us a lot more freedom” the FC continued.
    The restructuring of the debt is good news for Munster fans who will know that financial pressures are one reason behind Munster being unable to compete on the transfer market. However, the Munster branch have also been in negotiations with the IRFU about more financial aid.
    Philip Quinn was able to confirm that a deal similar to Connacht’s €1m investment from the IRFU was on the cards.
    “We are also looking for a grant similar to Connacht. The extra million Connacht got this year from the IRFU is something we have been in discussions with the IRFU about. I am not at liberty to say what the exact details are on that at present, but it will make a big difference in our defecit”
    With work on Musgrave Park redevelopment about to start next week, Munster’s ability to generate revenue from the stadium is expected to be a factor as soon as next season. (post Christmas)
    Again, Philip Quinn explains, “
    Obviously we can continue to play pro rugby at the venue. We are looking to drive additional revenue within the venue. We have Il Divo playing there in two weeks time. That will be a 14,500 out door concert. The seating for same is going in next week. It is about showcasing the venue and the facilities we have there once redeveloped.”
    “We have cut back as much as we can and it’s now about driving our revenue. Maximising our gates, getting that back to normal levels and also through the commercial boards and sponsorships too” Quinn continued.
    Munster, thanks to the IRFU and some new potential sponsorship deals in the pipeline through the commercial board are on course to break even next season. Something that three seasons ago was seen as almost impossible.
    With the restructuring of debt being a major plus, Garrett Fitzgerald, CEO of Munster Rugby has offered his thanks to the IRFU for all their assistance.
    “Going way back to the start when the plans for Thomond Park were put together when the economy was on a total high it was proposed that our ability to repay was put at 1 million euro (per annum) but that has had to be revisited and now what we’ve done is downsize the annual payment in agreement with the IRFU on the basis that they have lengthened the repayment period”
    “It impacts on the cashflow situation becuase you need to have cash to run a business like this. So it’s a huge boost for our cashflow situation and we very much appreciate the assistamce the IRFU have offered.”
    In summary, Munster will not be looking to recruitment any more players this season, coupled with cost cutting and a new Pro12 and European Champions Cup it appears that Munster will enter into a new phase of European Rugby on a stronger footing. The future, indeed, looks bright for Munster Rugby.

    The key points from last night’s AGM
    - Musgrave Park redevelopment is to commence next week.
    - IRFU debt on Thomond Park restructured from €1m a year to 100k until 2027
    - Season ticket sales for this coming season on a par with last. Seems to have plateaued at this level now.
    - Munster will continue to ‘rent’ out Thomond Park and Musgrave Park for concerts. The branch charge a set hosting fee for these events thus guaranteeing income regardless of ticket sales.
    FYI – Some interesting points from last night.
    Heineken Cup QF breakdown.
    Philip Quinn – “The Heineken Cup quarter final against Toulouse created in excess of 450k profit. The revenue from a Heineken Cup quarter final can be about 900k. Match costs are 180k, That leaves you with 720k, the visiting team gets 360k, we get 360k, the IRFU takes 180k of our 360k, so that leaves us with 180k. The IRFU takes the prize money too which would be about 450-500k. It’s very lobsided alright, but in fairness to the IRFU they are providing some financial support to us now too”
    UL Training Facility update
    “Planning permission has been submitted. UL will build the centre and then rent it exclusively to Munster over a long-term period, 15 years and upwards. It will be fully operational by July 2016.” – Garrett Fitzgerald
    Pro Team Costs
    “There was also some additional pro team costs resulting from performance related bonuses. Again, from getting to the Heineken Cup Quarter final. There is also a structure of match bonuses. The IRFU allow us (Munster) 10 win bonuses for the players. The IRFU pay all those bonuses for us. If you win more than that, the bill gets higher for the province at the end of the year. We are actually over budget on that side of things.” Philip Quinn
    Thomond Park naming rights
    This appears to be still on the table, but Munster have not approached anyone on same.
    Sky Sports kick off times announced for Pro12 next season
    Garrett Fitzgerald “Sky have come forward already with their kick-off times. They will be Saturday afternoons. They are covering 30 games and my understanding is that 22 of them will be about 3pm on a Saturday and 8 will be at 5pm or 5.15pm on a Saturday. They have already declared their hand which is a major help and I would strongly encourage the other TV channels to be progressive and long-term planning with regard to their timing with a view to helping us to have a more spectator friendly competition.

    http://gameoverballburst.me/2014/06/...ure-is-bright/

    #2
    Originally posted by hellovating View Post
    Heineken Cup QF breakdown.
    Philip Quinn – “The Heineken Cup quarter final against Toulouse created in excess of 450k profit. The revenue from a Heineken Cup quarter final can be about 900k. Match costs are 180k, That leaves you with 720k, the visiting team gets 360k, we get 360k, the IRFU takes 180k of our 360k, so that leaves us with 180k. The IRFU takes the prize money too which would be about 450-500k. It’s very lobsided alright, but in fairness to the IRFU they are providing some financial support to us now too”
    Some joke, they take all of the TV money too. The many "experts" we have had here over the years debating finances please take note.
    My computer thinks I'm gay
    What's the difference anyway
    When all the people do all day
    Is stare into a phone

    Comment


      #3
      Good news on the re-structure, and also the Sky kick off times.
      Will suit people travelling to games, and also give the Welsh something less to complain about.

      Comment


        #4
        Originally posted by sewa View Post
        Some joke, they take all of the TV money too. The many "experts" we have had here over the years debating finances please take note.

        Sure some have made that point time and time again Sewa, the point on concerts bringing in 50k appro - regardless of who performs has also been mentioned a number of times, especially by bitter.

        What would change on that concert aspect - in Thomond Park at least, is that the bars are now run by the stadium so that revenue would be additional to the set fee.

        Comment


          #5
          Originally posted by Bitter As A Lemon View Post
          Good news on the re-structure, and also the Sky kick off times.
          Will suit people travelling to games, and also give the Welsh something less to complain about.
          But you are not Welsh? are you!!!

          Comment


            #6
            Originally posted by Burgers View Post
            Sure some have made that point time and time again Sewa, the point on concerts bringing in 50k appro - regardless of who performs has also been mentioned a number of times, especially by bitter.

            What would change on that concert aspect - in Thomond Park at least, is that the bars are now run by the stadium so that revenue would be additional to the set fee.
            I am sure you know who I am referring to :)
            My computer thinks I'm gay
            What's the difference anyway
            When all the people do all day
            Is stare into a phone

            Comment


              #7
              Fantastic about afternoon kick off times!

              That's a comprehensive newsletter in all fairness, well done to all involved
              I am the million man.

              Comment


                #8
                Originally posted by sewa View Post
                I am sure you know who I am referring to :)
                Click image for larger version

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                Comment


                  #9
                  Originally posted by Burgers View Post
                  But you are not Welsh? are you!!!
                  Touche sir (doffs cap)

                  Comment


                    #10
                    Good news on the debt being restructured.
                    Excellence is hard to keep quite - Sherrie Coale

                    Comment


                      #11
                      Great news on match kick off times, should help with ticket sales and attendance. Makes it realistic for someone like me (5-6 hours travelling each way) to think in terms of getting to two or three league games a season. Fair play to the IRFU as well re the debt restructuring, which will be hugely beneficial for cashflow management.
                      Tis but a scratch.

                      Comment


                        #12
                        Originally posted by sewa View Post
                        Some joke, they take all of the TV money too. The many "experts" we have had here over the years debating finances please take note.
                        So they take a ball of money from us and then make us beg for it back in the form of a grant and we all say what great lads the IRFU are:-/
                        "Everything good about Ireland can be found in County Cork"....Lonely Planet Guide 2012

                        Comment


                          #13
                          Originally posted by sewa View Post
                          Some joke, they take all of the TV money too. The many "experts" we have had here over the years debating finances please take note.
                          We have known about the TV money, the prize money and all the distributions from the ERC being channeled to the IRFU for years.

                          We also know the IRFU pick up a fair bit of the wages tab.

                          There is not enough information in the public domain to know who is getting the better deal.

                          Comment


                            #14
                            not the most encouraging report.. at least the loan repayment is reduced to 100k a year

                            Comment


                              #15
                              Originally posted by Cowboy View Post
                              Fantastic about afternoon kick off times!
                              Originally posted by mr chips View Post
                              Great news on match kick off times, should help with ticket sales and attendance. Makes it realistic for someone like me (5-6 hours travelling each way) to think in terms of getting to two or three league games a season.
                              Remember guys, that's only for Sky and AFAIK every team will be on Sky an equal amount of times over the 30 games, so unfortunately there won't be that many home games at those times. 3 home games each for the Celts I reckon.
                              Last edited by Wallyman; 6th-June-2014, 14:23.

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