RUGBY:DESPITE A surplus of €6.7 million for the 2010/11 season, IRFU honorary treasurer Tom Grace has reiterated the perilous state of the economy and its potential affect on Irish rugby's continued success.
“This comes with a health warning,” said Grace at last night’s IRFU agm. “The surplus of €6.7 million is a paper profit only. Cash is king.
“Basically, we generated no funds from operations (last year). Looking at our balance sheet, our cash position on the 30th of April 2010 was a net profit of €1 million. However, on the 30th of April 2011 it had deteriorated to €11 million borrowing.”
The union have a loan facility of €38 million that will be borrowed in full from AIB. Thus, the importance of selling 3,700 10-year tickets for the Aviva Stadium in 2013 cannot be overstated.
“The continued deterioration of the economy in Ireland has badly impacted all aspects of society in this past 12 months and our sport has not escaped unscathed.”
Grace, who played with the 1974 Lions and is a former partner at PricewaterhouseCoopers, also referred to last November’s ticket fiasco when the IRFU admitted to overcharing for the internationals, resulting in a loss of €4 million.
“Mistakes were made and it is important that lessons be learned from these mistakes in order to avoid a repetition.”
