Financial Update From Munster AGM

The Munster Branch Annual General Meeting took place at Thomond RFC last night with club representatives from around the province in attendance.

Munster Rugby announced an expected loss of €;1.08M for the financial year ending June 2012 and this was broadly in line with the forecasted loss that was outlined at the 2012 AGM.

Munster’s Financial Controller Philip Quinn stated that “while the loss in 2011/12 was significant, the losses have reduced to €;650K in the current season (2012/13), and the budget for 2013/14 is for a break even position.

We were fortunate that we were able to cover the losses from prior year reserves and we are confident that we can achieve the break even target for next season. We are continuing to operate in a difficult economic climate which is a major challenge for all organisations.”

Turnover in 2011/12 reduced from just over €;17M in 2010/11 to €;14.7M as a result of a reduction in gate income and sponsors bonuses. Expenditure reduced by €;1.1M to €;15.7M from 2010/11 due to a reduction in the number of matches which was partly offset by an increase in the professional team running costs.

Munster are forecasting a loss of approximately €;650K for the current season ending June 2013 which is a reduction of over €;400,000 on the losses incurred in 2011/12. The reduction in the loss is down to a significant number of cost reduction initiatives implemented in 2012/13.

One major change announced during the season was the new retail partnership with Life Style Sports which will commence on the 1st of July 2013. Life Style will take over the running of the Munster Rugby Stores which will raise additional income for Munster Rugby through an innovative profit share arrangement.

Munster plan to get back to a break even financial position for the coming season 2013/14. This is through a combination of factors, most of which are cost focused.

Continued investment in the team remains the priority in order to ensure the team performance retains its competitiveness. The appointment of a Non-Executive Commercial Board, whose remit is to provide strategic guidance, advice and support, is also a welcome initiative.