IRFU optimistic provinces will survive financial crisis engulfing English club game

IRFU chief executive Kevin Potts says Ulster, Leinster, Munster and Connacht should continue to operate on a "sustainable basis"

The Irish Rugby Football Union says it remains optimistic the four provinces will survive the financial crisis engulfing the English club game.

Wasps and Worcester have each been suspended from the Premiership after entering administration.

The IRFU reported a 5.9m euro (£5.17m) profit for the year ended 31 July.

While the governing body forecasted deficits for the next three years, it expects Ulster, Leinster, Munster and Connacht to pull through.

"I don't really want to comment on the specific clubs, but it's really important for professional rugby that you operate with the funds you have with certainty," said IRFU chief executive Kevin Potts.

"I don't believe it will have any impact here as long as - and I believe it will be the case - the four provinces and ourselves operate our models on a sustainable basis."

He added: "Obviously we have sympathy for all of the players who are coming out of contract or losing their jobs because of this but in a strange way it might have a deflating impact, perhaps, on player costs in general.

"In professional sport, if you don't have a sustainable model you are going to run into trouble.

"That [a sustainable model] is what we are determined to ensure is the case here."

The IRFU had predicted a deficit of 4.9m euro (£4.2m) for 2021-22 having endured combined losses of almost 47m euro (£41m) in the previous two years during the pandemic.

The better-than-expected 2021-22 results, announced on Friday, were a result of fans returning to Ireland Test matches sooner than expected after the start of the pandemic, the receipt in arrears of 18m euro (£15.7m) in Irish government assistance for Covid-19 income losses, and a 44.6m euro (£39m) cash injection from CVC Capital Partners' Six Nations deal.

However, CVC's investment comes at a cost of a permanent reduction of 14% of future Six Nations and Autumn Nations Series income.

Munster beat South Africa A at Pairc Ui Chaoimh on Thursday, but Potts ruled out Ireland senior men's Test matches being played away from the Aviva Stadium

"We are forecasting deficits over the coming three years, but that's on the expectation that after three years there should be an uplift in broadcast revenues in the next cycle from the Six Nations," added Potts.

"If that doesn't happen, we'll have to look at our cost base again. We are clearly concerned, very aware of the economic situation, the energy crisis and the cost of living issues, and we're very aware of what's gone on in other jurisdictions with some of their clubs.

"We will live within our means, ourselves and the four provinces, and that's the key to getting through any of these issues in the future.

"This makes for challenging times but I do believe Irish rugby will rise to these challenges."

'Ireland team must play in the Aviva'

Meanwhile, Potts ruled out the prospect of Ireland senior men's Test matches being played away from the Aviva Stadium after Pairc Ui Chaoimh, the home of Cork GAA, hosted Munster's win over South Africa A on Thursday.

"All Irish internationals will be played here in the Aviva Stadium, which is the home of Irish rugby and of Irish soccer," said Potts, who was appointed IRFU CEO last December.

"The Ireland team must play in the Aviva and all of our various contracts would require that to be so.

"I always enjoy working with the GAA, we have a great relationship with them.

"Last night's game was absolutely phenomenal. It really is up to the provinces, if Muster wish to play more games at Pairc Ui Chaoimh, that's a matter for them.

"There's no obligation for any provinces to play at the Aviva Stadium, so if Munster wish to do that, or other provinces do something similar, that's up to them."