Rugby Unions’ Annual Reports - what they say

For those of a nerdy persuasion or who are interested in finances for the game, I thought I'd start this one in anticipation of annual reports being published by the various unions.  Feel free to add in information if you wish.

The Welsh Rugby Union published their reports this week declaring a turnover of £94.3m.    Their expenditure falls into 3 main areas:
1. Operational & Admin including staging costs of test matches in Principality, hospitality, hotel venture, etc.
2. Pro Game including test teams costs for players and management and funding for the 4 regions, plus Performance Rugby costs on women.s 7s, Age Grade.
3. Community Game

The costs of the men's national team was stated as £9.9m by the WRU in 2021.  I've used this figure for 2022 as they don't provide a specific figure for it within the overall Performance Rugby costs of £16.3m.

These look like this:

Well that doesnt look too promising with £94.3M revenue and £102M in costs. You really need to see the balance sheet though to see the current health and future strength of the commercial operation.

Very nearly half of WRU costs go on four teams and the national side. There's your Achilles heel right there and a comparison with other Unions could be interesting in both percentage and real terms.

Recwatcher16 wrote:Well that doesnt look too promising with £94.3M revenue and £102M in costs. You really need to see the balance sheet though to see the current health and future strength of the commercial operation.

Very nearly half of WRU costs go on four teams and the national side. There's your Achilles heel right there and a comparison with other Unions could be interesting in both percentage and real terms.

You're quite right about the balance sheet. The turnover figure doesn't include investment income monies received from CVC, for example, for stakes in URC (£7.5m)and 6N (£6.1m). However, I didn't want to clutter up the topic with references to EBITDA, etc, but the bottom line is they declared a profit of £3.2m for the year end, putting their reserves at £22.6m.

Have you looked at figures from RFU?

Ah, the famous nonsense pie charts that miss so much detail, such as stadium costs including Rodney Parade etc.

PhilBB wrote:Ah, the famous nonsense pie charts that miss so much detail, such as stadium costs including Rodney Parade etc.

The stadia costs are included in the Operational and Admin costs - £6.3m as noted by the Annual Report, - stadia because it includes Rodney Parade.  

What's the point you're seeking to make?

Pot Hale wrote:

PhilBB wrote:Ah, the famous nonsense pie charts that miss so much detail, such as stadium costs including Rodney Parade etc.

The stadia costs are included in the Operational and Admin costs - £6.3m as noted by the Annual Report, - stadia because it includes Rodney Parade.  

What's the point you're seeking to make?

The last time I pulled you up on your BS, you refused to interact with me. Now you want to play ball? Hilarious.

The point I'm seeking to make is that you're one of the worst readers of an annual report around, as I've proven to you time after time.

Others will, of course, make their own opinion of your pie charts.

PhilBB wrote:

Pot Hale wrote:

PhilBB wrote:Ah, the famous nonsense pie charts that miss so much detail, such as stadium costs including Rodney Parade etc.

The stadia costs are included in the Operational and Admin costs - £6.3m as noted by the Annual Report, - stadia because it includes Rodney Parade.  

What's the point you're seeking to make?

The last time I pulled you up on your BS, you refused to interact with me. Now you want to play ball? Hilarious.

The point I'm seeking to make is that you're one of the worst readers of an annual report around, as I've proven to you time after time.

Others will, of course, make their own opinion of your pie charts.

I see your boorish behaviour and associated commentary hasn't changed.  

We'll leave it there so.

Gentleman.....play nicely please.

The block function is your friend.

IRFU published their Annual Report during the week. They are reporting a €5m plus surplus following improved revenues from gates and sponsors with full attendances at matches, and a second tranche of Govt Covid support funding in late 2021. In addition, they've received an initial tranche of monies from the sale of 6N shareholding to CVC.

Their reported income has jumped from €84m in 2021 to over €115m in 2022.

Likewise, their expenditure has increased too. IRFU budget for 39-40% of expenditure goes to provincial branches, and 12.5% on the national men's test team.

With increased income, they incurred additional expenditure of €5m plus on the Elite Performance pathway and women's XV and 7s squads, a substantial increase for their community game, with some of the additional govt Covid funding for amateur clubs, and greater operational activity as things returned to normal.

The IRFU state they paid off their tax revenues due under the Irish government's Debt Warehousing Scheme operating during Covid and payable by Dec 2022.

Overall the Player and Management costs for the national team and funding for the provinces are down by €11m to €54.2m. This €54.2m includes:

All test team management and staff costs and test player performance bonuses - c.7m

Fixed contributions and grants to provincial branches for player salaries, senior medical staff and senior coaches using:
- Annual competition income from URC/EPCR comps - increased to €10m
- A further tranche of sale of URC shares to CVC - €10.3m
- IRFU fixed contributions/grants towards salaries - c. €27m

IRFU stated that recharges for player salaries and staff grants were only invoiced to branches for part of the year, hence increased P&M costs than normal.

IRFU predict deficits for the next three years, despite govt subsidies. Their balance sheet must be in reasonable shape.
https://www.bbc.co.uk/sport/rugby-union/63603954

Judgement Day is back for Wales this year which should generate a little more income for the WRU and the regions.

LordDowlais wrote:Judgement Day is back for Wales this year which should generate a little more income for the WRU and the regions.

If all four last that long

p.s. nice for the IRFU to not 'recharge' (cough) salaries for over 18 months now.

That's a minimum €30m boost to its branches whilst the WRU lobbed a £20m debt on to its supply chain.

And still some moan "why are the Irish better than the Welsh in the URC?"

p.s. the IRFU made a paper 'surplus' of €5.9m because the Government gave it €18m.

Whereas the clubs in England were loaned Government money

Funny how these facts counter the narrative.

PhilBB wrote:p.s. the IRFU made a paper 'surplus' of €5.9m because the Government gave it €18m.

Whereas the clubs in England were loaned Government money

Funny how these facts counter the narrative.

Supporting it through Covid as did the British Government in supporting individuals and business.

geoff999rugby wrote:

PhilBB wrote:p.s. the IRFU made a paper 'surplus' of €5.9m because the Government gave it €18m.

Whereas the clubs in England were loaned Government money

Funny how these facts counter the narrative.

Supporting it through Covid as did the British Government in supporting individuals and business.

I think the point is GAVE versus LOANED.

RugbyFan100 wrote:

geoff999rugby wrote:

PhilBB wrote:p.s. the IRFU made a paper 'surplus' of €5.9m because the Government gave it €18m.

Whereas the clubs in England were loaned Government money

Funny how these facts counter the narrative.

Supporting it through Covid as did the British Government in supporting individuals and business.

I think the point is GAVE versus LOANED.

Indeed.