Six Nations: IRFU chief Browne says CVC deal will boost Irish rugby by £48m over five years
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IRFU chief Philip Browne said last September that the "very existence of professional rugby" in Ireland was under threat because of the global pandemic
IRFU chief Philip Browne says the Six Nations' £365m deal with private equity company CVC will boost Irish rugby by up to £48m over the next five years.
The news has been welcomed by the Irish governing body who suffered losses of almost £31m last year largely because of the Covid-19 crisis.
"The partnership will serve to increase the ambition, scope and attractiveness of the tournament," said Browne.
However, he warned that the IRFU remains in financial difficulties.
"The total capital proceeds to Irish Rugby, if the deal is approved, will be up to £48m over this period, with approximately £6m net of costs due when the deal closes, later this year.
"It is also expected that annual long-term revenues from the Six Nations will increase.
"This deal demonstrates the strength and attraction of the Six Nations Championship, of which Ireland is an integral part, and yet, ironically it serves to highlight the extremely precarious financial situation in which the IRFU currently finds itself because of the Covid pandemic.
"Put in context, today's announcement comes against the backdrop of record losses for the IRFU in 19/20 of some €36m (£30.81m) and similar ongoing significant revenue losses expected this year.
"In real terms the initial funds received from this deal will simply deliver the funding required to keep Irish rugby going for little more than a month."
CVC already has Premiership and Pro14 deals
The overall deal sees CVC further strengthening their hand in rugby union by finalising a £365m deal for a 14% share in the Six Nations.
The deal has been two years in the making, and comes after CVC bought a stake in the Premiership and Pro14.
The money will be split on a sliding scale between the unions, with the Rugby Football Union receiving £95m, the Welsh governing body (WRU) some £50m and Scottish Rugby to benefit to the tune of £44.5m.
The deal incorporates the Women's and Under-20s tournaments, plus the autumn international series, with the six unions recently centralising their ownership and operational activities.
The Six Nations say the objective of the partnership with CVC is to "invest to grow and develop the game", with an aim to "attract a new more diverse and global fan base".
The Six Nations have insisted that deal will not result in them relinquishing undue control of the game's oldest championship as a result.
"Under the terms of the agreement, the six unions will retain sole responsibility for all sporting matters as well as majority control of commercial decisions," added the statement.