IRFU chief executive Philip Browne has issued a stark warning on the future of professional rugby in Ireland against the growing financial muscle of the game at club level in England and France.
Calling on the Pro 12 to increase its revenue streams, Browne said that the IRFU can no longer be the “lender of last resort” as wage demands continue to rise.
As part of the IRFU’s annual report, Browne outlined the challenges facing the game here.
“All is change in the European rugby environment with the growing dominance of those clubs in France and England with deep financial pockets,” said Browne.
“The size and quality of the playing squads that these clubs can assemble from around the world has changed the balance of power in Europe to the detriment of our provinces and the IRFU who simply cannot match the playing budgets of these teams.
“An extension of this new European order is the difficulty that faces the Pro 12 as a competition operating in Ireland, Scotland and Wales – three rugby markets which are a fraction the size of those in England and France.
“The revenues generated by the tournament need to increase significantly if the participating clubs are to remain competitive with the clubs in the English and French leagues. Such an increase in values will require some radical change to the tournament and how it is structured.”
Although Browne believes there is for the provinces to increase gate receipts revenue, this will not be enough to bridge the gap on the big English and French clubs. He also pointed out that the revenue generated by the IRFU through the international game is already largely contracted out for the next number of years.
“It is becoming increasingly clear that the professional game in Ireland can no longer rely on the IRFU being the ‘lender of last resort’ as the IRFU no longer has the capacity to absorb the increasing cost of the professional game as Irish rugby struggles to respond to the inflating player market in England and France.
“The risks to the Irish professional game are potentially profound and one of the key mitigation strategies is to invest in our pathway to develop better quality players more quickly through a more effective pathway – a key element of the new High Performance strategy.”
