The International Rugby Board (IRB) announced a new tournament fee structure for Rugby World Cup 2015 and 2019 bidders to give an added boost to the competitiveness of the process.
The decision was made to reflect the current economic environment and subsequent feedback from the nine Member Unions who are tendering to host these tournaments.
IRB Chairman, Bernard Lapasset, said: “In light of the current economic environment the IRB has decided to take a pragmatic approach on the tournament financial modelling to assist Unions in their future discussions with their respective governments and their delivery of competitive tenders.”
“The IRB Council has agreed that the minimum tournament fee for 2015 be reduced to £80 million from £100 million and that the minimum tournament fee for 2019 be reduced to £96 million from £120 million. The IRB has also agreed to incentivise the Host Unions by building in a profit share formula for any tournament surplus it generates that exceeds the minimum guarantee.”
“We are still looking to achieve a tournament fee of £100 million from 2015 and £120 million from 2019. The revised minimum requirements are just that, minimums. There is nothing to prevent one Union bidding the minimum guarantee of £80 million for RWC 2015 and another bidding £100 million.”
“That would lead to a very interesting decision making process next year when the host Unions for Rugby World Cup 2015 and 2019 will be decided in July,” added Mr Lapasset.
