Grace points to threat of an economic recession

IRFU AGM REPORT:DUE TO the current economic climate, IRFU honorary treasurer Tom Grace adopted a cautionary tone when addressing fellow committee men at yesterday's agm in Dublin.

The union returned to a deficit, albeit of just €90,083, in 2007/08 for the first time in two seasons with the absence of autumn internationals to facilitate the Rugby World Cup and the decline of sterling cited as the primary reasons.

"From an IRB perspective we want to be seen to support the World Cup but, financially, it costs us money," said Grace. "The (financial) result was a reasonable one given events on and off the field during the year. The union remains on target to achieve its strategic financial goals."

He went on to note the increase of €600,000 in professional game costs, which is primarily due to improved player wages while highlighting the need "to keep this under constant review".

Overall, the IRFU were accentuating the positives and with Lansdowne Road on schedule to reopen in 2010, of the €52.5 million residing in the union coffers, €51 million will be funnelled into the stadium costs which are shared with the FAI and Government. This income was generated by the sale of corporate boxes and premium seating in the stadium.

Grace, a former international winger and an insolvency expert who spent 34 years with Price Waterhouse Coopers, conveyed the risk to Irish rugby by the threat of an economic recession.

"We are not immune to a downturn . . . and must ensure a constant review so if we need to cut our cloth, we can do it quickly. In any business you have got to identify key risks. Once that is done you can plan going forward."

Grace outlined "potential risks" as the poor performance of national and provincial teams, the "salary inflation of international players and the need to ensure we get value for money from players or anyone we employ. Another important aspect is to complete the stadium development."

This wasn't just a reference to Lansdowne Road but ongoing upgrading of Ravenhill, Thomond Park and Donnybrook.

Incoming IRFU president John Lyons reiterated this point, "There are real risks facing this union."

Perhaps to stave off any overreaction to the financial plight, Grace added: "As a former player I am proud to look over to the corner of the room and see the Magners League trophy and Heineken Cup."

The two trophies made it easier to make no reference to events in France last September. Unsurprisingly, the reign of Eddie O'Sullivan as Irish coach was not mentioned.

The outgoing IRB chairman, Syd Millar, was honoured for his contribution to the world game while Noel Murphy's service to Irish rugby was recognised as he resigns from the union and international board. Millar, however, was keen to focus on the threat to the soul of Irish rugby by the continued neglect of the club game.

"The values that determine whether people play rugby or not is learned in the schools but particularly in the clubs. Academy players don't understand the value of the clubs," he added, before calling for a review of the All-Ireland league and increasing amount of A games at provincial level. Lyons said Millar's comments would be discussed at committee level. This will hardly be taken as an impending sign of change by people who are trying to keep the club game afloat.

Meanwhile, the union's commercial and marketing director Pádraig Power confirmed discussions with South African manager Andy Marinos over a proposed fixture to be held in the United Arab Emirates. "November 1st is the only window and the Irish squad will be in camp then anyway so it would not impinge on players or provincial squads. We . . . will know within the next few weeks whether it is going to happen."