IRFU to cut Wages ..

Junior

From Today's Indo

Top rugby stars face up to 50pc cut in pay

By David Kelly
Saturday May 29 2010

Some of Ireland's leading internationals -- including Gordon D'Arcy, Peter Stringer, Shane Horgan and Marcus Horan -- are among those who have been forced to swallow pay cuts of between 30pc and 50pc as the rugby recession bites hard. Some players will see their basic salaries chopped from €200,000 to €120,000 as the IRFU seeks to radically reduce its cost base in a difficult economic environment.

And next year Ireland's leading lights -- such as Brian O'Driscoll, Paul O'Connell, Ronan O'Gara and Stephen Ferris -- will also be offered substantial pay cuts when their contracts are up for renegotiation following the Rugby World Cup in New Zealand. The Irish Independent has learned this week that the IRFU are reducing the number of centrally contracted players directly paid by them from 30 to 21 -- however, not all the players have committed to remain in Ireland.

Players whose contracts were up at the end of this season and who were either coming to the end of their careers or were else struggling to hold down starting berths for either province or country were targeted by IRFU top brass.

It is believed both D'Arcy and Stringer prevaricated when presented with the new arrangements, although both are supposed to have decided to remain with Munster and Leinster respectively. However, it is not clear whether Horan or Horgan have committed to the radically reduced new deals on offer and there are other players who are believed to be in a similar position.

The IRFU also intend to row back considerably on their financial commitments to provincial development officers at regional and community level as they adapt to their move from Croke Park and deal with the financial commitment to the new Aviva Stadium

ongarite

I wonder is this for real as the rumours of Darcy's contract stalling have been on-going for a while or is it part of the whole FTA battle with Ryan.

chupacabra

Junior wrote: »

The IRFU also intend to row back considerably on their financial commitments to provincial development officers at regional and community level as they adapt to their move from Croke Park and deal with the financial commitment to the new Aviva Stadium

Ugh, what a disaster.

thomond2006

chupacabra wrote: »

Ugh, what a disaster.

+1

JustinDee

chupacabra wrote: »

Ugh, what a disaster.

If it was true . . .

thomond2006

JustinDee wrote: »

If it was true . . .

Tell us the facts then.

sock puppet

I thought the IRFU would be making much more money from playing at the Aviva? Or do they have large debts from building it?

JustinDee

thomond2006 wrote: »

Tell us the facts then.

The fact of the matter is that the development programme continues as it is.
I don't know what this journalist is on about.

sickpuppy

Horgan Horan and and Stringer are well past there best,
however players still young and in there prime like
Ferris would be a huge loss if they upped sticks and went to England or France where the irfu would have less control over them.

pappyodaniel

200k down to 120k. Have you any info on what the average wages would be in Eng and France? I really do love the structure in Irish rugby (unfortunately at the loss of the AIL) and would hate to see our big players tempted to play overseas for financial reasons.

Sangre

I think I'll wait on any player or IRFU statement before I pay too much attention to this.

themont85

Interesting that we had both this story and the non story about Leinster in debt during the week. Provincial crowds have been growing year on year and the IRFU clearly signed a nice big deal with Puma. I call BS on this one.

Shelflife

Its not much of a story really, horan,stringer and horgan are not what they once were and therefore their respective paypackets will take a wallop.

if they were still guaranteed their international places they would be in a stronger position.

Their careers are relatively short so when they are at their prime they will have big pay packets, when they are on the wane or unsure of their places then the bargaining shoe is on the other foot.

basic business really.

Junior

There was a second story in the Indo as well, I'm just wondering is it scaremongering with the whole FTA thing in the background..

Next stop europe for Ireland's golden generation

End of IRFU gravy train risks exodus of Irish stars

By David Kelly

Saturday May 29 2010

Perhaps now we know why leading Irish rugby stars like Brian O'Driscoll and Ronan O'Gara have spoken so endearingly of potentially leaving Ireland to take up lucrative contracts in France following next year's World Cup.

For, if the recent revelations are correct concerning the IRFU's scything of national contracts for older players coming to the end of existing deals, then the leading lights of the golden generation -- O'Driscoll, O'Gara and Paul O'Connell -- could be in for a rude awakening when they sit down with IRFU top brass to thrash out new playing contracts next year.

And you can be sure that clubs all over Europe and beyond -- Jamie Heaslip, for example, has spoken of his desire to spend a year in the Super 14 -- from Toulon to Toulouse and Leicester to Wasps, will have their ears pr**ked should Irish rugby's gravy train jolt to a shuddering halt.

The exact figures are difficult to discern, but amid the fraternity of the Irish international players, where comparisons and contrasts are percolated like gossip at Sunday mass, the percentage drop in basic income, already felt by up to 10 of Ireland's leading players, is anything between 30pc and 50pc.

Hence, the apparent reluctance of both Peter Stringer and Gordon D'Arcy to pen new contacts in recent weeks, now that it has become apparent that their contracts will no longer be funded by IRFU HQ.

They are among what is believed to be a significant minority of players who will see their basic incomes slashed for what remains of their careers in Ireland as the game wakes up to a financial reality many of their supporters have painfully endured following the collapse of the Celtic Tiger.

And, for others who are currently mulling over the radically reduced financial terms on offer for maintaining the rest of their limited careers, including players like Shane Horgan and Marcus Horan, the decision must now be whether to stay or go.

The example of Horan is an especially poignant one, given his incredible recovery from a potentially career-ending medical problem to recapture his starting position for both club and country.

Should he decide to remain playing for Munster, it seems like he will be forced to do so on vastly reduced financial terms.

The only alternative would be to seek alternative employment on foreign shores, either in France, where the budgets are multiples of the Irish provinces, or at somewhere like newly-promoted English outfit Exeter Chiefs, already home to an Irish colony of five players.

The writing for many of these players should have been on the wall when the IRFU announced earlier this year that the staff at Connacht were being placed on one-year deals; effectively putting the whole project on a one-year trial as they ruminate a putative downgrading of Ireland's perennially neglected, fourth proud province.

However, the IRFU have already managed to play hard ball with other leading Irish players of a thirty-something vintage, whose contracts expired over the last two summers, effectively managing to reduce their salaries by significant degrees.

It's not a new topic, as the IRFU have managed to do this from as far back as the mid-2000s. As the central contractor, they seek to reduce their exposure on players, particularly when they are approaching the end of their playing careers.

Like any professional outfit, it makes sense to offer a sliding scale of terms appropriate to both age and profile; hence the whopping deals available to the leading lights of O'Driscoll, O'Connell and O'Gara, who between them reportedly top a collective salary of €1m per annum before bonuses and personally negotiated endorsements.

However, what is intriguing is the timing of the current raft of pay cuts, arriving, as it did, before the IRFU went public in a highly emotional and personalised attack on Minister Eamon Ryan's proposals to re-designate the Heineken Cup as a free-to-air sporting entity.

The IRFU were at pains to demonstrate, via a variety of media cheerleaders, that some of Ireland's best talent could be forced to flee overseas should Ryan's proposals come to fruition.

And yet at the same time as the IRFU were complaining about an apparently unwarranted intrusion into their own financial arrangements, they were already immersed in a widescale measure of cost-cutting which would affect those very same players.

And that is not all. Already throughout the provinces, there is anecdotal evidence that the domestic game budgets are being targeted as the IRFU focus on a significant scaling back of the funding directed at this vital area of player development.

Although the IRFU announced a €2m surplus last year, it also indicated that the commitment to the new Aviva Stadium would require a capital commitment of some €77.5m, requiring the Union to go into debt until at least 2013.


Despite success on the field last season, thanks to the Grand Slam and Heineken Cup, advertising revenue did not match those achievements and commercial income slumped by some €560,000, while their pension liability rose startlingly from €6,000 to over €1m.

Hence, treasurer Tom Grace warned in last summer's Annual Report of potentially crucial decisions that may have to be taken in the months ahead.

"For the coming year and, indeed, subsequent years, the state of the Irish and world economies will impact on the Union and this and, indeed, all of the other risks facing the Union are carefully monitored and taken into consideration in the Union's financial planning and decision making.

"That said I am pleased to report that the Union continues to be on target to meet its medium and long-term financial goals especially in relation to the Aviva Stadium development.

"The Union are also carrying out a full cost review with the aim of reducing the Union's cost base without affecting current prog-rammes."

That current cost review is reaching areas seemingly immune during the golden generation of Irish rugby and, if the current financial outlook globally is taken as even a vaguely accurate barometer, the reductions may have to continue for some time yet.

Not even Irish rugby can escape the feral clutches of global recession.

- David Kelly

Irish Independent

Fatscally

jaysis and I thought the price of the tickets went up.

JustinDee

Fatscally wrote: »

jaysis and I thought the price of the tickets went up.

Ticket prices went down last year.

theKramer

JustinDee wrote: »

Ticket prices went down last year.

Theres no point talking about ticket prices going down in an 80K+ seater stadium last year when they're set to start at €100 when they move back to Aviva (Lansdowne Rd) which is a 50K seater stadium.

There is less than 30000 tickets for rugby clubs in Ireland in the new Aviva, whereas in Croke Park apparently there was approx 50,000.

I think that could hurt rugby in the long run as it will be seen as being elitist again. I was told by my club that I would need €600 for the 6 games in Aviva (4 autumn intnls and the 2 6N games) :eek: :eek:

Ahhh, no

JustinDee

theKramer wrote: »

Theres no point talking about ticket prices going down in an 80K+ seater stadium last year when they're set to start at €100 when they move back to Aviva (Lansdowne Rd) which is a 50K seater stadium

The poster said that ticket prices went up last year. They didn't. I just corrected this point.

I don't know how much tickets will be next season and don't know how much clubs sell their allocation for.

Dave Joyce

Theres no point talking about ticket prices going down in an 80K+ seater stadium last year when they're set to start at €100 when they move back to Aviva (Lansdowne Rd) which is a 50K seater stadium.

Well, I'm sure back in the hayday of the Celtic Tiger, capacity didn't factor in the minds of the suits in the IRFU, as to me, it was more aimed at selling out the affluent corporate sector rather than the "ordinary" supporter.

TBH, I find the whole situation very depressing, what with speculating about wage cuts, provincial cut backs and then no Churchill Cup participation and no chance of a rugby World 7's team either. How much further can they expect to go with some of these proposals without fuvking up the whole game here structure and all.

Heroditas

JustinDee wrote: »

The fact of the matter is that the development programme continues as it is.
I don't know what this journalist is on about.

The Leinster Branch let half of their RDOs go last year.
While it's true to say that the programme will continue as it is, it has been substantially scaled back in the last year or so.
Also, the issue with free-to-air TV is worrying them because if revenue is reduced, it's schemes like these that will be the first to suffer.

GSOIRL

pappyodaniel wrote: »

200k down to 120k. Have you any info on what the average wages would be in Eng and France? I really do love the structure in Irish rugby (unfortunately at the loss of the AIL) and would hate to see our big players tempted to play overseas for financial reasons.

Not sure but I heard the minimum wage in the Guinness Prem for a 1st team squad player is £70,000. They also have a level between academy and 1st team. A friend of mine is getting around £45,000 on this. He started 2 games this season in the Prem.

Don't know much about France.

JustinDee

Heroditas wrote: »

The Leinster Branch let half of their RDOs go last year.
While it's true to say that the programme will continue as it is, it has been substantially scaled back in the last year or so.
Also, the issue with free-to-air TV is worrying them because if revenue is reduced, it's schemes like these that will be the first to suffer.

I know what has happened in the restructuring that started last year. I mentioned it briefly earlier in another thread. The journalist said that changes were rumoured to be looming when in fact they were already in place.

Peter B

I just can't understand the massive cut the IRFU are talking about. It's not as if their move back to Lansdowne was any sort of surprise.

Lansdowne cost 7 times more expensive per seat than Thomond park. Why did they build such an expensive stadium? Did they not foresee interest rates (which were unusually low during the boom) going up? Could they really afford it?

Also do they really expect the numbers following rugby to remain this high. I might be wrong but I feel rugby's popularity may start to diminish with Irish teams not performing to expected levels in the next few years.

They must of factored in these things when budgeting for the future

lobber

Am still gobsmacked that they went ahead to build such a low capacity stadium by international standards. another example of Irish short sightedness in project planning. Lansdowne should have been 80k+ capacity

We have a system of central contracting that is the envy of other countries national teams as it allows adequate player management and it is in jeopardy of falling apart because the governing body's lack of hindsight on its revenue streams

JustinDee

lobber wrote: »

Am still gobsmacked that they went ahead to build such a low capacity stadium by international standards. another example of Irish short sightedness in project planning. Lansdowne should have been 80k+ capacity

Its been explained time and time again why the stadium cannot be an 80,000 stadium or even a 60,000 stadium (cannot be built down into surface, cannot expand outwards etc).
The alternatives to building at Lansdowne road were also discussed (Newlands cross etc).
As was the original agreement with the GAA on the use of Croke Park (in effect: You can use Croke Park until your stadium is finished. When that time comes, you are back home).
And of course the reality that attendance minus ground hire fee does not equate to a simple net profit as it doesn't take into account outsourcing of contracts and cross-contracting.

Peter B

JustinDee wrote: »

Its been explained time and time again why the stadium cannot be an 80,000 stadium or even a 60,000 stadium (cannot be built down into surface, cannot expand outwards etc).
The alternatives to building at Lansdowne road were also discussed (Newlands cross etc).
As was the original agreement with the GAA on the use of Croke Park (in effect: You can use Croke Park until your stadium is finished. When that time comes, you are back home).
And of course the reality that attendance minus ground hire fee does not equate to a simple net profit as it doesn't take into account outsourcing of contracts and cross-contracting.

Good points. Also for anyone who thought we should have sold the Lansdowne site for mega bucks to some wealthy business, this could never be the case. Lansdowne Road is zoned as a green field area and if sold could only be used as a green field area therefore highly reducing its value.

Shelflife

What people have lost sight of is the other side of the story, the likes of Heaslip, Earls, Healy , if their contracts were up then you can be sure that their wages would be going up.

Its simple supply and demand.

RogerThis

If any player wants to leave Ireland, good luck to them. They are paid plenty here, and if that's not good enough, they can go somewhere else. This will help the younger players get first team game time, instead of getting 26 year old's like McLoughlin breaking through late.
Sure I could be getting paid twice as much as I'm on, if I moved to Dublin. But it's just not worth it for me.

rockman15

frankly clearing out the older lads might be a good thing for the future. the decline in wages is natural economics. its happened in every other industry, so why not sport?

at the very least, if the old guard move on, the next generation are brought through for province and country. maybe we should put more trust into these young lads? anyone remember Paris in 2000?

shawpower

JustinDee wrote: »

The fact of the matter is that the development programme continues as it is.
I don't know what this journalist is on about.

It's David Kelly. Says it all.