THE IRFU HAS officially confirmed a change to its central contracting system ahead of next season, with the provinces contributing up to 30% of the value of national contracts.
Often referred to as ‘central contracts,’ national contracts are the deals in which the leading players in the country have had their salaries paid in full by the IRFU up until now.
That has meant a nationally-contracted player’s province hasn’t had to contribute any of their own provincial budget towards that player, who would be a relatively expensive one given that they are a leading Ireland international.
However, the IRFU has confirmed a change following a review of the union’s funding model which was launched last year, with the provinces now contributing up to 30% of the national contract for the first time. That level of contribution will be reviewed annually.
Leinster are set to have 10 players on national deals next season, with just one in each of Munster, Connacht, and Ulster, which had led to concerns in some quarters about a lack of financial balance between the provinces.
Following the review of its funding model, the IRFU has pledged funding of around €40 million to the four provinces “on a more transparent and equitable basis.”
The union said there will be “new incentives based on future growth of income from EPCR and URC competitions,” as well as a new “matched funding programme” aimed at helping the provinces to increase fundraising efforts and investment in the domestic game.
“Last year, I announced a review of our funding model and today I am pleased to announce that this review has been completed,” said IRFU CEO Kevin Potts.
“With 80% of the Union’s income derived from our men’s national team, it is imperative that we protect that income at all costs as it is essential to delivering our expanding women’s rugby programme and ongoing support of our domestic game.
“At the heart of our existing model is the central control of player contracting and management, which is admired by many. A key change to the funding model will see provinces contribute up to 30% of the cost of a national contract for their players, with this level to be reviewed annually.
“We hear loud and clear from our players that Ireland is the best place for them to play rugby, owing to our exceptionally high player welfare standards and game management, and that is something of which we are immensely proud.
“The strength of rugby in Ireland is aligned to having four healthy, competitive provinces and the IRFU remains committed to delivering this in a financially sustainable manner.
“In essence, this new model is simpler, more transparent, more equitable and delivers better incentivisation and alignment.
“We will however continue to review the model annually which will also need to take account of the pending release of new strategic vision for rugby in Ireland. I would like to thank all the provinces for their support and participation in this review and we look forward to implementing these changes for the betterment of rugby in Ireland. “
