IRB reduces rugby World Cup bid costs - Sports News - Fanatics - the world's biggest events

IRB reduces rugby World Cup bid costs

By Julian Guyer 27/11/2008 07:07:07 AM Comments (0)

Tournament fees for the 2015 and 2019 Rugby World Cups are to be reduced in response to concerns from tender nations worried about cost implications caused by the worldwide credit crunch, the International Rugby Board (IRB) announced.

IRB chairman Bernard Lapasset, in a statement issued from the governing body's Dublin headquarters, said on Wednesday: "The IRB council has agreed that the minimum tournament fee for 2015 be reduced to STG80 million ($A190.39 million) from STG100 million ($A237.98 million) and that the minimum tournament fee for 2019 be reduced to STG96 million ($A228.46 million) from STG120 million ($A285.58 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," added the Frenchman.

Lapasset explained the IRB had decided, "in light of the current economic environment", 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."

Last month Francis Baron, the chief executive of the Rugby Football Union (RFU) warned it would consider withdrawing its bid to stage the 2015 edition as the figures then being quoted by the IRB "made it unlikely that England could actually make a profit out of hosting a World Cup".

The 2007 World Cup in France delivered the IRB a profit of some STG90 million ($A214.18 million).

July's announcement will be the first time the hosts of two Rugby World Cups will have been revealed simultaneously.

An aim is to make the bid process fairer for an emerging nation after Japan controversially lost out to New Zealand in the race to stage the 2011 edition.

The draw for the pool stage of the 2011 World Cup, where South Africa will defend the title they won last year, takes place in London on Monday.

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