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Following Rugby World Cup 2015 in England and Wales World Rugby have announced record financial results for 2015 and a record investment programme for 2016.
World Rugby reports that the revenue is higher than expected with nearly £345 million. This is on the back of improved broadcast and sponsorship markets for Rugby World Cup 2015 and a higher tournament fee from the RFU.
Such results mark an annual profit of £189.5 million, as adjusted for International Financial Reporting Standards (IFRS). Under IFRS, World Rugby defers all revenues and direct expenditures for RWC 2015 until the year of the tournament. All funds received from Rugby World Cup 2015 will be reinvested in the game through World Rugby’s programmes.
The results represent a position ahead of forecast, driven by a 70% growth of Rugby World Cup commercial revenues during the four-year tournament cycle and reflects commercial, broadcast and participation growth in rugby worldwide, particularly in major and emerging rugby markets.
World Rugby Chairman Bill Beaumont said: “Rugby continues to experience record global participation growth and these record financial results will underpin our game-wide investment programme that is a proven catalyst for year on year participation increases and will ensure that we can build a strong and sustainable global game in partnership with our unions and regional associations.”
“World Rugby’s strategic mission to grow the global rugby family is reflected by the organisation’s diligence in maintaining operating costs and strategically investing in the game for the next four years through targeted programmes, including training and education, player welfare, tournaments and high performance and assistance with preparation costs for Rugby World Cup 2019.”
“Rugby World Cup 2015 was a very special event on the field and we are delighted that its record-breaking commercial success is enabling World Rugby to deliver record investment in 2016 and beyond. As the source of 90 per cent of our revenues, we need to ensure that the Rugby World Cup model continues to evolve to deliver the long-term financial platform for a sustainable and thriving sport.”
World Rugby Chief Financial Officer Robert Brophy said: “World Rugby was delighted with the financial outcome from Rugby World Cup 2015 in every respect and this has allowed to us increase our investment in all aspects of our sport as we look forward to the next four-year business cycle, and to Rugby World Cup 2019 in Japan in particular.”
