Revenues at Rory McIlroy's firm last year tumbled by 71pc to €5.5m
Revenues at superstar golfer, Rory McIlroy’s management and image rights firm last year tumbled by 71% to $6.29m (€5.5m)
That is according to new accounts which show that Rory McIlroy Management Services Ltd last year recorded operating profits of $3.2m.
The firm enjoyed the operating profits before non-cash amortisation costs of $18m are taken into account.
After the non-cash amortisation cost of $18m and interest payments of $1.92m are factored in, the company recorded a pre-tax loss of $16.6m.
The pre-tax loss of $16.6m was a fraction of the $105m pre-tax loss sustained in 2016 and this was mainly due to a non-cash write-down of $99m in image rights.
The drop in revenues at the firm coincided with injury last year limiting McIlroy to only 14 US PGA Tour stars in 2017.
Despite McIlroy’s indifferent form on the golf course in 2017, McIlroy’s commercial appeal showed no sign of slowing down as he signed a number of deals in 2017.
Nike signed McIlroy to a 10-year extension for apparel last year while the Northern Irish golfer also entered a long-term deal with TaylorMade in 2017.
Other endorsement partners include Omega and Upper Deck while McIlroy replaced Tiger Woods as the face of Electronic Arts' golf video game in 2015.
The main activity of the company is managing of royalty earnings and management fees for the golfer.
The directors of the company state that “income levels were in line with expectations”.
The company’s cash pile tumbled during the year going from $6.7m to $829,219.
At the start of last year, the company had a massive $280m book value placed on McIlroy’s image rights and it reduced to $261m at the end of last year.
Rory McIlroy’s father, Gerry sits on the board with MD Donal Casey and Sean O’Flaherty who was appointed on July 1st 2017. Mr O’Flaherty replaced Barry Funston.
Pay to directors last year increased from $711,141 to $1.056m.
At the end of last year the firm employed six made up of three directors and three in administration. Staff costs last year reduced from $1.85m to $1.78m.
The firm generated its $6.29m in income from royalties and management fees - down from the $21m earned in 2016.
The company trading as Rory McIlroy Inc, was established towards the end of 2013 by McIlroy.
The McIlroy company, headed by Mr Casey, manages all the royalty payments from the golf star's various endorsements.
McIlroy works in many countries but opted to locate everything to do with his brand and intellectual property in Ireland by setting up the firm here as part of a strategy to simplify his business affairs.
Prize money and other such earnings are not part of the Irish company's revenue because they tend to be treated as income, and taxed accordingly by the country where the championship was won.
In setting up the firm in the Republic, McIlroy spurned the route often taken by superstar sports personalities by creating a complex structure that would have located his management company in the United States while protecting his wealth with tax havens such as the Virgin Islands or Bermuda.