Revenues at the management firm of the world’s number one ranked golfer, Rory McIlroy, last year increased by 33 per cent, or $4.89 million, to $19.72 million (€18.83 million).
Accounts show that Dublin-based Rory McIlroy Management Services Ltd last year recorded the revenue jump as pretax losses narrowed by 70 per cent, from $8.03 million to $2.35 million.
The pretax loss for the firm arises after a non-cash write down of $15.7 million in McIlroy’s image rights during the year, in accordance with accountancy rules.
The accounts disclose that the net cash generated by the company from operating activities after tax and interest totalled $12.88 million for 2021, compared to $9.8 million for 2020.
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Last year was the second year that golf was impacted by Covid-19 and the 2021 revenues still lag behind the firm’s 2019 revenues of $24.2 million.
In a note with the accounts, the directors of the company said that “both the professional game and recreational golf have emerged strongly from the Covid-19 pandemic”.
The note said “the business outlook for the medium term is very promising”.
The main activity of the company is managing royalty earnings and management fees for Rory McIlroy, one of the most marketable players in golf globally.
Prize money and other such earnings are not part of the Irish company’s revenue because they tend to be treated as income and are taxed accordingly by the country where they are won.
McIlroy’s earning power was underlined in recent days when he received $12 million under the US PGA Tour’s $100 million Player Impact Programme (PIP), where high-profile golfers are rewarded for generating the most interest in the PGA Tour – measured through metrics such as media and TV sponsor exposure.
Tiger Woods received the highest PIP amount at $15 million – in August, McIlroy and Woods set up a new joint venture firm, TMRW Sports, that is t take “progressive approaches to sports, media and entertainment”.
The McIlroy management company recorded an operating loss of $666,192 last year, and interest payments of $1.68 million resulted in the pretax loss of $2.3 million.
The company recorded a post-tax loss of $3.68 million after paying corporation tax of $1.32 million.
The company’s cash pile last year increased sharply from $5.2 million to $12 million.
At the start of last year, the company had a $209.9 million book value placed on McIlroy’s image rights and it reduced to $194.24 million at the end of last year.
Rory McIlroy sits on the board with his father Gerry, Donal Casey and Sean O’Flaherty.
Last year, the pay to directors increased by 26 per cent from $2.11 million to $2.66 million.
At the end of last year the firm employed six, made up of four directors and two people in administration. Staff costs totalled $3.3 million.
