Wind-up cost of European Rugby Cup firm expected to top €3.8m
The wind-up costs of the Dublin based company that oversaw the runaway success of the Heineken Cup are to total over €3.83m.
That is according to the directors of The European Rugby Cup Ltd (ERCL) after the firm last year lost the rights to operate the Heineken Cup and the European Challenge Cup after a power struggle with English and French clubs.
The new accounts for ERCL for 2013 show that the Heineken Cup continued to be a provide a bonanza for European rugby in 2013 with €44.35m donated to participating clubs and unions.
The Irish provinces have benefited greatly from the competition.
Underlining what was at at stake in the battle that has resulted in a revamped European Rugby Champions Cup and European Rugby Challenge Cup this season, the €44.35m donated in 2013 was marginally down on the €45m donated to the unions and clubs in 2012.
The accounts just filed with the Companies Office show that revenues at ERCL dipped by 1.3pc from €51.66m to €50.98m in the 12 months to the end of June 30, 2013.
ERCL's revenues were mainly derived from TV and sponsorship income.
The firm - which operated the Heineken Cup since 1995 - has never paid any corporation tax as the company "is engaged in an exempt activity and as a result, its profits are exempt from Irish corporation tax".
The projected €3.83m exceptional cost from the wind-up of the company this year resulted in the firm recording a pre-tax loss of €4m in 2013.
The figures show that the 19 employed at the firm were well remunerated in 2013, receiving pay of €1.797m or on average €94,578 each.
The firm ceased its main trading operations on June 30.
However, as part of a one-year service level agreement to June 30 this year, ERCL is currently assisting the organisers of the new competitions, European Professional Club Rugby to run the new competitions and after that will wind down its operations later this year.
The firm's cash pile reduced from €6.9m to €4.72m in 2013.