RWC Provides Record Investment for World Game
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The International Rugby Board Council has underlined its continued commitment to the development of the global Game by approving a new £48 million Strategic Investment Programme for the 2009-2012 period. This substantial investment programme, which is part of a worldwide expenditure of £153 million over the next four years, will include increased funding for Tier 1, Tier 2 and Tier 3 Unions and has been made possible by the continued commercial success and growth of Rugby World Cup.
“The IRB’s financial results, from the final year of the four-year business cycle, paint a healthy picture for the Game. Net revenues for the period were £130.3 million (as adjusted for International Financial Reporting Standards). The vast majority of the revenue generated is in respect of Rugby World Cup which generated a surplus of £122.4 million, underlining the 2007 Tournament’s stature as the most successful Rugby World Cup ever,” said IRB Chairman Bernard Lapasset.
“The confirmation of the record RWC surplus will allow the IRB to continue the roll-out of substantial investment in the Game over the next four years. For the 2006-2008 period the IRB invested £30 million in the Game to fund its expansion and increase its competitiveness and now it will embark on a further £48 million investment programme over the next four years.“
“When you add additional IRB expenditure in the form of annual Union grants, tournament assistance funding and education and training programme expenditure a total of £153 million will be invested in the Game during the 2009-2012 period. This expenditure will require the IRB to draw £38 million out of its reserves,” added Lapasset.
Further details on the next round of initiatives (2009-2012) will be announced in the near future but it will mean significant funding for 22 Unions across Tiers 1, 2 and 3, and continued investment in the now established and successful IRB tournaments - IRB Pacific Rugby Cup, IRB Pacific Nations Cup, IRB North America 4 and IRB Nations Cup.
“Rugby World Cup 2007 was a significant commercial success. The surplus from the Tournament was almost double the £64.3 million generated by Rugby World Cup 2003 in Australia, demonstrating an increasing appetite for the Game both in traditional Rugby markets, but also across emerging Rugby markets such as Russia, India, China and North Africa,” said IRB Head of Finance Robert Brophy.
“This increase in surplus reflects the Tournament’s return to the European marketplace and includes increased broadcasting, sponsorship, licensing and hospitality revenues. For the first time in Rugby World Cup history, France 2007 boasted a full sponsorship inventory featuring six worldwide partners and six official sponsors, while the commercial ticketing programme was a resounding success, exceeding 100,000 sales which was more than the 1999 and 2003 Tournaments combined. There was also a significantly increased contribution from France as the Host Union. The strength of the Euro was also a positive factor,” added Brophy.
The IRB operates International Financial Reporting Standards in line with global best practice. As part of this process, all revenues in respect of Rugby World Cup 2007 are recognised within the financial year ending 31 December 2007. Under the IRB’s previous accounting policy, revenue was booked the year in which it was invoiced and revenues were accumulated incrementally for each Rugby World Cup over the four year cycle.
“The surplus figure of £130.3 million for the IRB accounts is the culmination of the four year business cycle leading up to RWC 2007 and should be read together with previously announced losses of £28.2m, £19.1m and £17.5m for 2006, 2005 and 2004 respectively. This policy is in line with international best practice,” added Brophy.
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