Gavin Cummiskydoes an question and answer session with IRFU Chief Executive Philip Browne
Q: If someone buys a 10-year ticket for the new Lansdowne Road can they legally challenge the validity of a move back to Croke Park?
A:Firstly, our existing 10-year ticket holders have access to Croke Park (note: they can purchase tickets). They don't have access to premium seats, simply access to a seat.
What you are really saying is are we going to be moving matches to Croke Park and the answer is no.
I say that in terms of the context of where the stadium is and in terms of why it is designed the way it is. It is funded on that premise by way of commercial contracts with suppliers, our 10-year ticket holders, our box holders, potentially with a naming rights holder and our catering franchise, all of whom have entered commercial arrangements on the basis that there is going to be a full set of rugby internationals and a full set of soccer internationals and a number of concerts every year.
The bottom line is if we start to unpick all of that we are effectively unpicking all the commercial arrangements which underpin the financing and business model of the stadium. So, the reality is it was never planned that we would move matches out and in fact, it was never an option and obviously, we were reading what's being said in the papers by the GAA and that's news to us.
Q: There are no special circumstances for considering the use of Croke Park, like say, Ireland co-hosting the Rugby World Cup?
A: That's something that's down the line and that's a different issue. But as regards our programme of international matches - which is our autumn internationals, Six Nations matches, Heineken Cup matches, that are all part and parcel of the normal fixture list, they are going into Lansdowne Road because if we pull them out of Lansdowne Road effectively it's costing us money to do so. We are unpicking deals that have already been done.
Our sponsors or catering franchises will have done all their projections on the basis of a full set of internationals. We start taking them out and it affects their bottom line, it affects their ability to make their contract workable and it affects the ability of the stadium up there to actually wash its face on an annual basis.
The whole thing is planned on the basis that we play our matches there. It has been planned financially, in terms of the actual design, in terms of the hospitality facilities.
In fact, we have chosen to put additional facilities in, along with the FAI, for the very purpose of making sure the facility does wash its face. We can't start unpicking all that now. It's too late.
Q: The FAI and IRFU self-funded these additional facilities (an example being an underground car park under the back pitch) by increasing the stadium budget?
A: That's right. In other words, for instance, to be trying to make that investment on a facility that is only going to be used 15, 20 days a year doesn't make a heck of a lot of sense. However, if you put the facilities in that allow it to be used for non-event days - for business meetings, for other functions . . .
Q: Like Croke Park have done.
A:Correct. We've been following the model really that Croke Park have set in Ireland and other stadiums around the world. Liam Mulvihill and Peter Quinn, when they set out on their project did exactly what we've done, which is look around and see what other stadiums have done. See how you can make the stadium wash its face. We've done exactly the same thing.
Q: Have all the corporate boxes and premium seats been sold?
A:The boxes have largely been sold. We have a few left, not many. We're very happy with that and there have been expressions of interest for the rest. The 10-year premium tickets have more or less been sold out, we have a waiting list of over 1,000. We kept some back because we felt the sponsors who decided they didn't want a box might still want seats so we've kept some flexibility of a couple of hundred tickets.
I think we're in a reasonable position on this. In fact, we've banked a considerable amount of money, in excess of over € 50 million.
Q: Is there any option to purchase 10-year tickets outside of boxes and premium?
A: No.
Q: The 50,000 capacity is the same as the old Lansdowne Road. How many tickets will be available outside of premium and corporate?
A: We would have had just over 5,000 10-year tickets which we will convert into premium seats, most of those people have supported the development of Lansdowne Road over the last 30 years so it is only right and proper that those people will be given access to premium seats.
Then we sold another four and half thousands of the "new seats" - for want of a better term - and we kept some back that we will put onto the market in due course. That covers off the box, premium seats and the visiting union allocation. It covers off the commercial requirements and VIP-type requirements as well.
The reality is we will have in and around 36,000 to go back into the club system and these will be distributed in the normal fashion, which is how it used to be in (the old) Lansdowne Road.
Q: Is there is more profit to be made by staying in Lansdowne Road?
A:Ultimately, there is. Commercially that's the way it pans out between the various contracts we have, not only with the GAA, but also with our commercial partners in the stadium.
Q: Presuming the stadium development stays on schedule for completion in April 2010, the pitch will be ready in August 2010, will the IRFU host the first game (what with talk of the FAI hosting a friendly against Argentina)?
A:In terms of when the game is going to be played, that is a difficult one. First, it depends on the pitch and the pitch depends on the roof. Until the roof goes on we can't take away the temporary support towers for the roof and they are on the pitch. The plan is they will be coming away in September of this year. If they don't and that moves on into November then we are out of the growing season and you can't seed the pitch until March. There are all sorts of variables there.
But yes, a rugby match will be the first (sporting) event in the stadium. The opening will be a non-sporting event. The reality is that trying to run an official opening at the same time as running a sporting event, it doesn't work.
Q: The IRFU have clearly got their ticket scenario in good shape, are you confident the FAI can deliver on their funding responsibilities considering their current ticket sales scenario?
A:We have no concerns on that front. Everything is moving forward as planned. It is all systems go. At the end of the day the money is flowing and everyone is comfortable with the way things have been set up.
Q: Naming rights are something you have already mentioned, Thomond Park considered it but decided not to pursue it, where are the IRFU on this at present?
A:The naming rights is no secret. We have been in the market for naming rights for about 18 months. We're in discussions with a number of parties. We would hope to have these bottomed out, certainly within the first quarter of this year. I think we have to watch this space. The current economic climate isn't the greatest but having said that we're confident enough that we'll land something which will fulfil the requirements that we have.
Q: Can you give us a figure, whether exact or approximate, of how much you hope to receive?
A:No, I don't think it would be appropriate to put figures on the table at this time. We are in the middle of a pretty delicate stage of discussions with various parties.
Q: At the agm last June IRFU honorary treasurer Tom Grace spoke at length of the problems facing the union in these challenging economic times, are you confident that the professional element of Irish rugby can be maintained current levels, on both the commercial and playing side?
A:I have no doubt that we wouldn't have embarked on this project unless we had done the business and financial modelling. We're quite confident that when the stadium is up and running that not only will it wash its face but it will be a major financial engine.
Q: Are the IRFU considering a joint bid for the Rugby World Cup, after the IRB stating a €135 million guarantee is required beforehand?
A:That's for 2019. It's about €90 million for 2015.
Q: With that in mind would this put the union off the bidding process?
A:At the end of the day there is no question that we would be a sole host or that Ireland and Scotland or Ireland and Wales could host it. Simply the population of the country wouldn't be sufficient to support and underpin that sort of competition. We would only get involved in a joint arrangement - the likelihood is it would have to be with England in order to generate the sort of guaranteed income that the Rugby World Cup need. That's where it is.
There are a lot of discussions going on regarding the financial implications of a bid. €90 million focuses the mind in terms of making a bid.
Q: Croke Park, from a financial aspect has been a success, but otherwise how successful would you perceive the whole experience?
A:The team were very happy playing there. The quality of the pitch is second to none. The atmosphere over the opening internationals, second to none and the experience for the spectator, equally, has been fine. Inevitably you get some chat about how far away the spectator is from the pitch but that is the nature of the stadium. From an IRFU perspective it has worked very well. We are thankful to the people up in Croke Park and Peter McKenna for the co-operation they showed us over the last two years.
I'd like to add that we greatly appreciate what the GAA have done for us. There was a lot of hard work done by a lot of people in opening up Croke Park for the period of the development of Lansdowne Road. We are grateful for that magnanimous gesture that they made.
