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EXCLUSIVE: "If we have to cut wages, we have to cut wages" | Philip Browne on the likelihood of pay cuts for players

IRFU CEO Philip Browne says pay deferrals for professional players are not a 'long term solution'...



Rugby

EXCLUSIVE: "If we have to cut wages, we have to cut wages" | Philip Browne on the likelihood of pay cuts for players


IRFU CEO Philip Browne says pay deferrals for professional players are not a 'long term solution', with pay cuts on the horizon because of the pandemic.

The governing body of Irish rugby is facing a financial crisis with a loss of up to €20 million expected if the Six Nations isn't completed and if the autumn internationals do not take place in 2020.

Browne exclusively told OTB's Keith Wood and Ger Gilroy on Keith Wood's State of the Union that the game is facing an existential crisis and professional players may have to bear some of the pain.

"With the agreement of the players, we have a salary deferral scheme in place, so we're in the second month of that.

"We cannot simply build up a set of deferred salary liabilities, potentially in the knowledge that we're not going to be able to pay them. I don't see that that's a long term solution. At the time when the crisis first hit in March, everyone thought - 'well we'll be back training in June and we'll be playing out the end of the season in July and August'. That's all changed now.

"I think the salary deferral scheme is something certainly we need to be looking at.

"Ultimately if we have to cut wages, we have to cut wages, if that's what's going to help us get to the other end in one piece, and unpalatable as it is, we wouldn't be the only organisation in the country who is having to face up to these issues."

Browne says the IRFU need to get activity going again with inter provincial games scheduled to take place on August 22nd and August 23rd at the Aviva Stadium.

The union says they may have to ask for financial support from the Government until rugby returns to some semblance of normality.

"It's easy to switch it all off. It's much harder to switch it back on again. If you lose an NGB or if you start losing clubs, at that stage it becomes very difficult to put it all back together again.

"Professional sport is a marginal business. We don't bank huge reserves. We spend the money we earn in terms of keeping four professional teams going, keeping the national team going, the women's team going, the sevens team going and also supporting the amateur club game to the tune of about €10-11 million a year.

"We are a not for profit organisation. The reality is that the cash is limited. Yes, you could go off and borrow, but nobody should get engaged in borrowing funds unless they have some idea as to how they are going to repay them and at this point in time, I have no idea how we would repay any debt we took on."

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