MUNSTER RUGBY HAS offered voluntary redundancies to its staff as the province looks to tighten its belt amid financial challenges.
The 42 understands that Munster Rugby employees were called to a meeting yesterday at which plans for voluntary redundancies were outlined.
It remains to be seen exactly how much of the Munster workforce leaves the organisation, but the news has naturally come as a huge blow for those employed by the province.
It’s believed that Munster’s senior professional players and coaches will not be directly affected by these measures, although there was a pre-existing plan for the southern province’s squad to have slightly fewer players in it next season.
The plan initially involves a call for voluntary redundancies and the hope appears to be that Munster Rugby will not need to move to an involuntary process.
Munster Rugby is understood to have suffered losses of up to €1 million last season, a campaign in which the senior side didn’t secure a lucrative home game in either the URC or Champions Cup knock-out stages.
Munster again failed to earn a home tie in the Champions Cup knock-outs this season, instead falling into the Challenge Cup play-offs, and Clayton McMillan’s team may struggle to get a home quarter-final in the URC.
However, this decision has not come solely on the basis of senior team performances. It is thought to have been influenced by a challenging time with commercial and sponsorship revenues, which haven’t been as high as hoped for.
Munster and the IRFU have both spoken in the recent past about the ever-growing financial challenges involved in rugby.
Last year, the IRFU launched an “organisational efficiency review” of Irish rugby in conjunction with Portas, a sports management consultancy.
The IRFU said the review aimed to “ensure that every Euro is working as hard as it can to support the game and deliver on our strategic ambitions.”
It’s thought that each of the four Irish provinces has also undertaken similar reviews of their financial operations, with this decision by Munster seemingly coming on the back of their review.
“Munster Rugby can confirm that we have initiated a Voluntary Redundancy Programme and have begun consultation with our staff,” reads a statement from Munster issued to The 42.
“Revenue has trended below forecast in the context of a challenging economic environment and this is the next step in aligning our cost base with income in order to establish a sustainable financial position.
“Our priority is to communicate with and support our colleagues first. Munster Rugby will be making no further comment at this time.”
The IRFU added that it will continue to support Munster amid the financial challenges.
“The IRFU works closely with all four provinces on an ongoing basis to address the shared challenges facing the game, including long‑term financial sustainability,” said the IRFU in a statement to The 42.