GAA coffers suffer €5m 'gate' decline

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sheepshagger
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GAA coffers suffer €5m 'gate' decline

Post by sheepshagger »

GAA gate receipts tumbled alarmingly by more than €5m in 2008 as Croke Park grew much more dependent on revenue from rugby and soccer international matches.

Figures released by Croke Park yesterday reveal a dramatic slide in the number of paying customers through the turnstiles last year, a situation that the Association's financial director, Tom Ryan, has described as "disquieting".

With a further 10pc drop forecasted for '09, the GAA is budgeting for a €6m reduction in its overall investments and costs.

The figures also reveal how Pairc an Chrocaigh Teoranta -- the company that runs the stadium -- now enjoys a far more substantial take from hosting rugby and soccer internationals than it does from its staging of all GAA games.

INCREASE

In '07, the percentage of overall revenue accrued from GAA games was 26pc, with internationals in the first year of the arrangement with the IRFU and FAI amounting to some 24pc.

But the increase of international games, allied to the slide in attendances at GAA fixtures, has witnessed a sizeable shift in those percentages with Gaelic Games now just 20pc of Croke Park's income, with international revenues in '08 soaring to 34pc.

Ireland played three Six Nations internationals in '08 at Croke Park and also hosted New Zealand and Argentina in the autumn series.

In addition to this, there were four soccer internationals.

The value of those internationals to the GAA in '08 alone was a colossal €11.7m, bringing the overall revenue from the decision to amend the then Rule 42 in '05 to €18.7m.

Croke Park was in a position to hand over €15m to central funds at the end of the year, which has been specifically ring fenced for various capital projects across the country.

The size of the central level (All-Ireland championship, qualifier and club games and National League) gate receipt slide in '08 -- which dropped from €31.46m in '07 to €26.35m -- is alarming and is sure to have a knock-on effect in the coming year on what money can filter down to provinces, counties and clubs.

GAA officials have, however, been encouraged by figures at the turnstiles since the start of the year with the new- look Hurling League proving a success.

The damage to the overall balance sheet from falling gate receipts was offset by a climb in other revenues, chiefly sponsorship under the new vehicle for championships, allowing an income rise of 2pc, up to €64.31m from €63.22m in '07.

Stadium manager Peter McKenna, announcing an eighth-consecutive year of profit for the company, did however warn in his report of "tough days ahead".

With international fixtures heading back to Lansdowne Road's new Aviva Stadium in late 2010, revenues for the stadium will shrink, with increased competition from the southside venue for concerts and other activities.

"We will not be immune to its effects," explained McKenna of the economic downturn.

Pairc An Chrocaigh Teoranta -- which also oversees the running of corporate seat sales, commercial sales, etc -- reported a profit of €20.1m, a rise of 18pc from €17.1m, with three concerts also providing considerable revenue.

It has been able to set aside €3.2m in a sinking fund that will allow for maintenance repairs such as seat replacements and an overhaul of corporate areas.

With 12 major finals in 21 match days, nine international days and two concerts, some 1.9m people visited the stadium in '08. But tellingly, average attendances at GAA matches was substantially down to 43,472 from 50,367 in '07. The average gate for the previous four years was 49,785.

This is the firmest indication that gates are suffering badly and are now back to '06 levels. A price freeze has been put in place for the year, but there is no intention to cut admission fees to attract more crowds.

The National Leagues saw the biggest relative decline in attendances, dropping from 3.6m customers to 1.9m in football and from 1.5m to 1.1m in hurling.

"The Leagues were disappointing in '08. There was uncertainty over Cork, some games were put off because of bad weather and we had no Dublin/Tyrone League opener in Croke Park as there was in '07," said Ryan.

Gates are still the biggest earner for the GAA at 41pc, but commercial revenues and Croke Park rent are creeping up all the time at 26pc and 27pc respectively. With State funding certain to decline from the current €3.7m, Ryan stressed the importance of improving gate receipts.

"We are still in a stable position, but '09 will be about getting value for money in everything we do," he said.

The loss of potential early championship replay revenue could impact this season, but there will be no review on the decision to play extra-time in all provincial championship quarter-finals, legislation brought in as part of the burnout package.

"The figures are worrying, but since the start of the year they have picked up and with a new-look Leinster championship, we may be able to hold our own," said GAA Director General, Paraic Duffy yesterday.

The GAA recycled 78pc of the money it made back to provinces, counties and club, a figure of some €52m.

http://www.independent.ie/sport/other-s ... 84911.html

I've said it once and i'll say it again, even when Aviva opens there still still be the odd rugby game played in Croker. . . . the GAA are not immune to the recession just like everyone else!
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Re: GAA coffers suffer €5m 'gate' decline

Post by Slipper1 »

That is some money machine. Fair play to them. But I dont think we have seen the end of foreign sports in "headquarters", the recent easily acceped request for a club match is testament to that.


and long may it last by the way - not trying to get at the GAA at all, it seems obvious to me that if you have the facilities, then they should be used as much as possible.
Get in the f%~king bag.
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Kyle
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Re: GAA coffers suffer €5m 'gate' decline

Post by Kyle »

Slipper1 wrote:That is some money machine. Fair play to them. But I dont think we have seen the end of foreign sports in "headquarters", the recent easily acceped request for a club match is testament to that.


and long may it last by the way - not trying to get at the GAA at all, it seems obvious to me that if you have the facilities, then they should be used as much as possible.
Completely agree with you, there's no way that we'll never see rugby in Croke Park again, soccer is a different story cause they cant fill the stadium.

I just wonder giving the odd 30,000 extra seats that Croke Park will have on the new Lansdowne what will happen when teh likes of England and France are playing here and Croke Park is free to be used by the IRFU?
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Re: GAA coffers suffer €5m 'gate' decline

Post by alterego »

Kyle wrote:
Slipper1 wrote:That is some money machine. Fair play to them. But I dont think we have seen the end of foreign sports in "headquarters", the recent easily acceped request for a club match is testament to that.


and long may it last by the way - not trying to get at the GAA at all, it seems obvious to me that if you have the facilities, then they should be used as much as possible.
Completely agree with you, there's no way that we'll never see rugby in Croke Park again, soccer is a different story cause they cant fill the stadium.

I just wonder giving the odd 30,000 extra seats that Croke Park will have on the new Lansdowne what will happen when teh likes of England and France are playing here and Croke Park is free to be used by the IRFU?
It's amazing the amount of uninformed nonsense that's continually trotted out on this site.

Philip Browne stated clearly, earlier this year, that Croke Park would not be a viable financial option for the IRFU when Lansdowne re-opened. There is no finanical benefit to the IRFU, to switch "big" matches to Croker.

What will probably happen is that the GAA/Croke Park Ltd. will seek planning permission for a change in use of the stadium in order that it can hold more concerts, throughout the year, given that its revenue stream will dissipate by a further 26-28%, on the re-opening of Lansdowne, and that revenues from its own events are falling sharply.

Either way, this is the most opportune time for the IRFU to ringfence its own receipts and stop bolstering an organisation that considers itself to be "in competition" with all other sports.
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Re: GAA coffers suffer €5m 'gate' decline

Post by suisse »

Kyle wrote:
Slipper1 wrote:That is some money machine. Fair play to them. But I dont think we have seen the end of foreign sports in "headquarters", the recent easily acceped request for a club match is testament to that.


and long may it last by the way - not trying to get at the GAA at all, it seems obvious to me that if you have the facilities, then they should be used as much as possible.
Completely agree with you, there's no way that we'll never see rugby in Croke Park again, soccer is a different story cause they cant fill the stadium.

I just wonder giving the odd 30,000 extra seats that Croke Park will have on the new Lansdowne what will happen when teh likes of England and France are playing here and Croke Park is free to be used by the IRFU?
Except Irish matches of course. What have Hibernian Aviva forked out €40 million for? The rights to a stadium that will host the School's Cup Final every year? Not to mention the premium seats, other sponsorship and catering contracts.

I heard somewhere that of the remainign seats left over in Aviva Stadium, not gong to Premium or sponsors, the IRFU will charge a €150 flat fee - irrespective of where the seat is in the ground. Since they sell Hill 16 tix for €38, and Davin, Hogan and Cusack for €90, I'm sure they'll make up the loss of 30,000 ans easily enough.

the days of the school boy section are gone for good :cry:
thecoolfreak
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Re: GAA coffers suffer €5m 'gate' decline

Post by thecoolfreak »

I can't see them charging €150. There is no way they could justify such prices for a game of rugby. I think €100 is the max they could get away with
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claire_m
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Re: GAA coffers suffer €5m 'gate' decline

Post by claire_m »

thecoolfreak wrote:I can't see them charging €150. There is no way they could justify such prices for a game of rugby. I think €100 is the max they could get away with
I think the RFU is charging £80 odd for an England game. During the 6 Nations this year, their home games weren't all sold out and tickets went on general sale. This has never happened before. Whilst some people will continue to pay those kind of figures, I know so many people who just won't.
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Re: GAA coffers suffer €5m 'gate' decline

Post by alterego »

claire_m wrote:
thecoolfreak wrote:I can't see them charging €150. There is no way they could justify such prices for a game of rugby. I think €100 is the max they could get away with
I think the RFU is charging £80 odd for an England game. During the 6 Nations this year, their home games weren't all sold out and tickets went on general sale. This has never happened before. Whilst some people will continue to pay those kind of figures, I know so many people who just won't.
Goiven the Grand Slam, they could probably get away with charging the same amount as they charge for Croker matches, given that an additional 26% of the ticket revenue will be retained. Approximate average revenue of €4m per match, if tickets stay at €80, as opposed to €2.9m at the moment. That figure does not account for sponsors freebies or higher revenue corporate packages. Smaller venue = less supply and a greater willingness on the part of patrons to pay higher amounts for the privilege of supporting their team.
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