The IRFU has reported a stronger than expected financial position with the release of its annual accounts.
While the union did report a deficit of just under €1m for the year ending 31 July 2023, it was considerably less than the €7.4m deficit that had been forecast 12 months ago.
That was in large part down to Ireland's Six Nations Grand Slam success in March, the addition of Bank of Ireland as a sponsor of the November series, as well as the sale of new nine-year tickets.
Income saw a large drop in the last 12 months from €116m to €92m, which can be attributed to the government Covid-19 grant the union had received in 2022 to cover losses in 2021. Likewise, expenditure decreased by almost €17m to €93m as the cost profile returned to normal post-Covid.
The union's balance sheet remains solid, with net assets relatively unchanged at €106m and cash balances of €63m.
Today's figures don't account for the Rugby World Cup, which IRFU chief executive Kevin Potts says will have cost an estimated €10m after World Rugby's World Rugby's €5m contribution.
"One, the loss of our regular November international matches, which is not fully offset in any way by the summer warm-up games," Potts said, as he explained the World Cup costs.
"Two, the significant additional costs of preparing our team and participating in the tournament that aren't covered fully by World Rugby. These include additional training camps, additional preparation camps, additional support staff around the team, additional logistics, player costs, and additional hotel costs."
And while the CEO (above) says the World Cup will have a major impact on next year's accounts, the union remains in a strong financial position.
"So our deficit for 2023/24 is likely to be well in excess of this €10m. However, we do expect a return to close to break even in 2024/25, the following year, and at no stage in the next 10 years are we forecasting that the IRFU will go into debt.
"I often speak about the IRFU living within its means, only spending funds we have or can predict with relative certainty, and I am determined that we will continue to adhere to this in the medium- to long-term," he added.
Rugby finances in England and Wales have been a source of interest over the last 18 months, with multiple clubs in England going into administration, while the bleak financial situation in Wales has seen the budgets of the regions shrink with many of the country's top stars taking opportunities abroad.
And while Potts says Irish rugby isn't immune to financial worries, there will not be a knock-on effect in this country.
"We are resolute in our determination to manage our finances and live between our means. I probably sound like a bit of a broken record on that, but it's true.
"We work hand in glove with our provinces and a number of them are really struggling to break even and to manage or stay within the parameters that we agree with them. They work hard at it.
"We've a greater responsibility to the wider game in the longer term and if we started to spend too much money on the professional game, money we can't afford, ultimately that's going to have an impact on the long-term health of Irish rugby. That's not going to happen here, certainly not on my watch."
The IRFU chief also revealed that the future of broadcasting is the union's main "challenge" in the year ahead.
Potts explained that while they are pleased with their current free-to-air TV partnerships, they will need to see an "uplift" in TV revenue when the next rights cycle comes up in 2026.
"I mentioned we're comfortable enough running deficits for now, but all of us - the unions - the next TV cycle from 2026 onwards, and the broadcast values that are obtained at that time are really important.
"We're all working together very well on that, but that is vital. If we don't get uplifts at that time, we will have to start cutting some of our programmes. We're not expecting to have to do that, we're hoping and optimistic about that.
"The strategy is yet to be decided but what must happen is that whatever the strategy is followed, we have to get an uplift to keep us competitive, but also to be able to invest back to the game. That's not just us, it's all of us."
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