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The GAA has announced acute losses of 34.1 million euros for 2020 as the effects of the Covid-19 pandemic hit hard.
Central finance posted 15.6 million euros in the red, and when the deficit of 10.2 million euros of the Croke Park stadium was accounted for, the injury fund plus other exceptional costs (1.3 million euros) and the county / province losses of € 7 million, the association suffered a total deficit of € 34.1 million, compared to a national surplus of € 8 million in 2019.
The news came in the GAA’s annual statement, which ended on October 31.
The association’s income was reduced by 57% (€ 73.9 million to € 31.4 million), and more than half of those revenues came from state funds of € 18.5 million.
CEO Tom Ryan noted in his annual report that “the GAA simply could not have sailed safely through 2020 without significant support from the governments of the north and south” and told RTÉ Sport that similar assistance may be needed this year. .
“A provision was made in last year’s budget for the sports sector this year,” he said. “We have already spoken with Sport Ireland and the Department about the principles of that, emphasizing that we are not out of the woods yet. We don’t like having to rely on the public purse (but) we point out with them as this year is going to be a challenge. .
Ticket sales accounted for 48% of 2019 record revenue, but the absence of fans for the inter-county championships last year represents a € 32.4 million drop in ticket revenue to € 3.6 million .
Commercial revenue fell by more than 56% to € 8.65 million, while sponsorship and media income decreased from more than € 20 million to € 9.1 million as contracts had to be renegotiated. and the last stages of the championships were delayed until November and December.
Game development allocations (€ 6.38 million, down 52%) and capital grants (€ 2.78 million, down 64%) were significantly reduced, while administration costs fell 1 , 9 million euros to 9.4 million euros; saved 1 million euros in salaries due to 30% deferral payments that requested a part last year, as well as the use of the government’s wage subsidy scheme.
On the other hand, a profit after tax of 6.3 million euros was declared after the sale of part of the Clonliffe College land to the Hines real estate group, but that was partially offset by the cost of 5.5 million euros of transfer 50% ownership of the new National Handball Center to the local community
In his report, Ryan wrote: “The past year was very detrimental to the association from a financial point of view, with the aftermath likely to be felt for a few years.
“2020 presented us with many difficult decisions, not least financial. We may not have had income, but we still had responsibilities. So, as far as possible, we played, promoted health initiatives, made facilities available, did our best. Ironically, this came at an ongoing cost when we could least afford it.
“When it first became apparent that a Covid threat was emerging, we did not anticipate the scope or duration of what was to come. The initial shutdown of our activities in late March was in the sincere expectation of a difficult few months and nothing. more, and hopefully you can weather a brief outage.
“But what followed was more difficult than we could have imagined. We did everything possible to live up to our responsibilities to the Association and to society. We did not always do everything right, and we did not fully comply in all respects, but we believe that we behave reasonably well and fulfill our responsibilities. “
Chief Financial Officer Ger Mulryan expects 2021 to be equally difficult, warning that GAA revenues may not recover until “summer 2022 at the earliest,” but added that “our centrally consolidated balance sheet is strong and I am confident that we will be fully capable of meeting the economic challenges presented, head-on. “
“Losses are currently forecast at similar levels and additional sources of financing will be required to support these losses,” he said.
“The Government has been contacted regarding support for 2021 and initial feedback is positive. Separately, our banking partners have indicated confidence in our ability to recover when our games resume and have committed a line of credit.
“However, we will need to manage and be responsible for our own financial affairs and we will have to reduce our
Basic cost base even more to protect the long-term health of the Association.
“The launch of the vaccine will directly influence when our games can fully return to normal and is not expected to be completed until the end of 2021. Our ability to generate revenue will continue to be challenged and may not return to normal. Previous levels through Summer 2022 at the earliest.
Mulryan suggested that last year’s cap on panel sizes to 32 players, and restricting the number of training sessions and backroom staff members allowed to attend games, offered a way forward, as the expense in the preparations of the teams between the counties decreased from 29.7 million euros to 18.8 million euros. .
“I think we may have landed on a formula that will serve us when we return to a normal playing schedule.”
When asked about the long overdue redevelopment of Casement Park in Belfast, which finally got the go-ahead last October after years of legal wrangling, Tom Ryan insisted the GAA remains committed to him and other long-term projects.
“Our goals and priorities have not changed,” he said. “What could have changed is our ability to achieve them in the short term, or our speed of delivery. But not our ambition.
“It’s still in the cards. There was progress this year. There is still a bit to do in terms of permits, I understand, and even cost, etc. But Casement is still a priority.
“We’ve been talking to counties that have significant ambitions to do things in terms of specific county land, and they understand the constraints that we are facing now, but at the same time, we understand what was good to do on county land. Two years ago, three years ago, it’s still a good thing to do. So our ambitions are the same. “
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