Agency split costs Rory dear, despite revenue rise

REVENUES at the Dublin-based firm that manages Rory McIlroy’s business affairs soared fivefold last year to nearly £20m.

However, new accounts show that the four-time Major winner from Co Down has been left counting the cost of his expensive break from his former agents.

His firm, Rory McIlroy Management Services Ltd, plunged into the red to record pre-tax losses of $17m (£13.5m).

Early last year McIlroy reached an out of court settlement reported to be around $25m (£19.8m) with Conor Ridge’s Dublin firm, Horizon Sports. The new McIlroy accounts refer to the settlement but don’t provide the cost of it to the firm last year.

The directors’ report states that they “are pleased to note that litigation involving the company was settled in the early part of the year. It was agreed by all parties that the terms will remain confidential, save where disclosure is required by law”. However, the accounts show that the firm’s administrative expenses last year toenter talled $39m (£30.1) compared to $6m (£4.76) in 2014.

The largest part of the administrative expenses concern the non-cash write-down of $21m (£16.6m) relating to McIlroy’s brand, which has a whopping book value of $400m (£317m).

The value of the McIlroy brand is underlined by the fact that it persuaded the likes of Nike to a reported $250m (£198m) 10-year deal with the 27-year-old.

Taking account of the $21m non-cash write-down, the firm recorded a profit on an operational basis of $4m for the year.

The firm’s cash pile during the year increased from $250,758 (£199,000) to $3.8m (£3m).

Last year it paid $397,533 (£315,000) in corporation tax.

According to the directors, “income levels were strong and in line with expectations”.

“The ankle injury sustained by Rory resulted in him missing his Open Championship defence but he finished the year strongly winning a third Race to Dubai title.”

The golfer is unlikely to be too perturbed by the pre-tax loss last year, with Forbes magazine earlier this year estimating that McIlroy earned $42.5m in the past 12 months — broken down between $35m from endorsements and $7.6m in winnings. In September McIlroy walked away with $11m following his USPGA Fed Ex Cup and the Tour Championship — this easily eclipsed the €2.97m McIlroy has earned on the European tour alone this year.