Finances to suffer
Revenue loss unavoidable for G.A.A.
SHOULD THERE be no games either at club or inter-county levels during 2020, Wexford G.A.A. will be facing into a huge financial hit.
If another long spell without games due to the Covid-19 outbreak is on the cards, it points to a bleak financial scenario for the Association in the county.
The lack of games could hit the G.A.A. directly in the pocket, given sponsors will have no games to promote their company around, either at club or inter-county level.
This year Wexford G.A.A. welcomed new sponsors on board, with Zurich Insurance signing up as the county’s main sponsors.
Meanwhile, Chadwicks assumed the sponsorship of the Wexford Park ground, with the new ‘big two’ joined by many more sponsors that are supportive of the Association in the county at various levels.
Games are what the G.A.A. promotes, so without them there is little other opportunity for companies to get their message across, and this could create quite a troublesome situation.
Of course, it is not as serious when compared to what is facing the general public out there, with the loss of jobs, and families being devastated by the loss of loved ones, so it needs to be put into perspective.
While the G.A.A. both at local and national level remain hopeful that there will be games at some stage this year, as the days and weeks roll on, it’s becoming increasingly unlikely that one will see full championship campaigns for the foreseeable future.
At this point there is even speculation that we may have to wait until 2021 before competitive games return to our playing pitches, although the announcement of An
Taoiseach, Leo Varadkar, on Friday night did paint a more positive picture than that dreaded scenario.
There is a huge potential loss to Wexford G.A.A. should they lose championship games, as it would leave so much of their income in doubt, particularly the loss of gate receipts.
At inter-county level, a reduced National League return along with the loss of ground rent from their home round robin championship games would constitute a huge revenue deficit.
Last year gate receipts came in at €453,236, all from county championship fixtures at adult level, Coiste na nOg and the four Districts, coupled with €87,340 from season tickets.
The National Leagues generated €136,101, with hurling bringing in the sum of €92,954, while the football share was €43,147.
While the leagues generated a decent return, this year’s would be down considerably as the knockout stages of the hurling have been left uncompleted.
In addition, there was still two rounds of football league games remaining, when the pandemic brought a sudden halt to all sporting activities.
Now it has been decided that the G.A.A. in general faces some sort of hit from the sale of season tickets, with the Association now committed to a percentage refund dependent on the number of games played, which in turn will see a reduced return from the sale of season tickets.
While one will expect a statement at some later stage as to the county’s likely loss of commercial income, the hit could be heavy this year, if not into next year.
In the event of games falling by the wayside, no doubt all commercial contracts and sponsorship will have to come up for renegotiation.
The impact, should companies have paid for the 2020 season, will likely be felt for the year 2021, and while there can be some mitigation, companies will be negotiating a new contract to take them into next year.
Sponsorship at the moment is in limbo as it is largely centred on inter-county activity or club championship games, so in the absence of games and any activity they cannot be expected to hand over the full amounts due.
Otherwise, should this have already occurred, any company in that position will no doubt seek a restructuring of their sponsorship for 2021.
The commercial and fund raising income for the Association in Wexford generated some €989,739 in 2019.
The main sum of €548,714 came through sponsorship, commercial and fundraising income, while the Model County Draw, which has not been run off this year so far, generating €209,434.
Rent received came to €99,711 which would have been helped by the inter-county championship games.
Other income generated €468,491, with the main sum coming from summer camps (€299,087), while expenses amounted to €206,129. It’s also expected that income from associated bodies will also take a hit.
Sources within the G.A.A. expect that teams’ expenses will drop considerably. Last year the total for teams’ expenses came to €928,331, but with fewer league games, and the expected lack of championship games both at under-age and adult levels, this figure should show a dramatic drop.
The figures for the maintenance of grounds - Wexford Park (€174,373), St. Patrick’s Park (€19,968) and Ferns Centre of
Excellence (€63,522) - are also expected to drop given the lack of games and training.
Administration expenses last year amounted to €468,667, and that included €280,249 for staff costs.
That could also show a drop for this year, while the figure of €45,992 for tickets will be reduced considerably too, given the lack of games at club and inter-county levels.
With little enthusiasm being generated for matches to be held any time soon, there is less chance of monies been recouped in the short term.
In fairness to the G.A.A., they are biding their time and not shedding any real light on when games will be resume, as they have stated that they will quite correctly be guided by the advise coming from the HSE and the Government.
Wexford’s exposure to the loss of such revenue will now most likely put the resurfacing of the Chadwicks Wexford Park pitch, along with the floodlighting of the grounds, on hold for the foreseeable future.
Few remain hopeful that championships will be played this year, despite the G.A.A. emphasising that should there be a return to competitive games, clubs will be given priority.
All of the financial repercussions will come into focus should there be no championship. A championship behind closed doors also seems unlikely, while added to this is the important point that many players are seeking clarity on the measures to be taken to protect their health should games take place.
It’s a huge decision for the G.A.A. to take, if it has to take it: should there be a championship at all in 2020, either at club or inter-county level?