Rugby - Ireland - May 2004

SUMMARY

The advent of professional rugby in 1995 has allowed the sport to become a world-class competitive sport, making money for clubs, players, sponsors and Ireland itself. However it has also highlighted the need for significant expenditure to keep Irish rugby competitive on the world stage.

Mintel's new report provides a detailed analysis of the business behind this key sports market. Where is investment needed? How can the industry foster and grow the enthusiastic playing base?

Analysing the size of the market, the key companies involved and finding out exactly what consumer are demanding, as well as the future opportunities for the industry, can your business afford NOT to have this data at your fingertips?

This report has been produced as part of Mintel's Irish Series and is sold in Ireland exclusively through our sales agency, OCO Consulting, based in Belfast.

TABLE OF CONTENTS

Introduction and Abbreviations

• Geographical, national and regional definitions
• Methodology and acknowledgements
• Conversion factors
• Population
• Exchange rates
• BMRB Target Group Index sample sizes

Abbreviations

Executive Summary

Rugby since professionalism

Fostering the playing base

Developing top class facilities

Significance of regions

The future

Market Factors

Rugby as a participation sport

Health and fitness

Demographic influences

Media influence

Supply side factors

Facility development

Youth development programmes

Government funding

Sponsorship

Market Size and Segmentation

Rugby players in Ireland

Club fees and affiliation to IRFU

Regional differences in popularity of rugby

• Figure 1: Domestic profile of Irish rugby, by region, 2003
• Figure 2: Number of IRFU affiliated clubs per branch, 2003
• Figure 3: Rugby clubs, by counties and divisions, 2003
• Figure 4: Percentages of AIB AIL clubs per county
• An opportunity for development
• Adult participation in sport
• Figure 5: Adults who belong to or visit sports clubs regularly, NI, 2002 and 2003
• Figure 6: Adults who belong to or visit sports clubs regularly, RoI, 2002 and 2003

The Supply Structure

Rugby administration in Ireland

• The National Stadium

Rugby teams

• International level
• Provincial level
• Club level

Competitions

• Allied Irish Banks All Ireland League
• Celtic League
• Schools Cup
• European Rugby Cup Heineken Cup
• Royal Bank of Scotland Six Nations
• Rugby World Cup

Profitability of the Game

Is Irish Rugby in profit?

• Figure 7: IRFU cumulative operating deficits, 2000-04
• IRFU income
• Figure 8: IRFU income, by source, 2002-03
• Funding the professional game
• Figure 9: IRFU Expenditure, by category, 2002-03
• Figure 10: IRFU professional game expenditure, by category, 2002-03
• Generating more income

Rugby Marketing and the Media

Professional rugby and the media

Sponsorship and endorsement

• Main Sponsors of Irish rugby
• Figure 11: Main sponsors of Irish rugby, 2004
• Provincial sponsorship
• Figure 12: Provincial rugby sponsorship, 2004
• Case study: Grafton Belfast Harlequins RFC
• Figure 13: Harlequins sponsorship, by cost of various packages, 2004

Merchandising

The Internet

The Consumer

Demographics of the rugby audience

• Figure 14: Level of interest in rugby union, NI, 2002 and 2003
• Figure 15: Level of interest in rugby union, RoI, 2002 and 2003
• Figure 16: Adults who have paid to watch/Like to watch on TV/read about rugby union in NI, 2002 and 2003
• Figure 17: Adults who have paid to watch/like to watch on TV/read about rugby union in RoI, 2002 and 2003

Active participation in sport

• Figure 18: Active participation in sport or exercise by adults in RoI and NI, 2003

Spectating

• Television spectators
• Figure 19: Adults who have paid to watch sports, games and activities in the last 12 months, RoI, 2002 and 2003
• Figure 20: Adults who have paid to watch sports, games and activities in the last 12 months, NI, 2002 and 2003

Rugby audience lifestyles

• Figure 21: Positive responses to lifestyle statements by all adults and all adults who follow rugby union in NI, 2003
• Figure 22: Positive responses to lifestyle statements by all adults and all adults who follow rugby union in RoI, 2003

Audience awareness of advertising

• Figure 23: Awareness of advertising at sporting events in RoI and NI, 2003

Levels of drinks experimentation

• Figure 24: Experimentation with new drinks by adults in RoI and NI, 2003
• Figure 25: Loyalty towards beer brands among adults in RoI, 2003

Irish financial awareness

• Figure 26: Uptake of professional financial advice among adults in RoI and NI, 2003
• Figure 27: Awareness of personal finance amongst adults in RoI and NI, 2003
• Figure 28: Understanding of customer needs amongst banks in RoI and NI, 2003

The Future

IRFU assesses the future...

...and identifies strategic goals

Prospects for Connaught team hang in the balance

A national stadium to reflect rugby's new importance

Importance of the major tournaments

Development effects on numbers and revenue

• Ulster considered best supported team