Rory McIlroy’s management firm achieves $ 9.37 million in revenue

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Last year, the management and rights company in the image of golfer Rory McIlroy suffered a pandemic of 9.37 million dollars (8.32 million euros) whose revenues fell by 38.7% from $ 24.2 million to $ 14.8 million.

Accounts show Dublin-based Rory McIlroy Management Services Ltd recorded a pre-tax loss of $ 8.03 million last year. That widened to an after-tax loss of $ 8.9 million after paying corporate tax of $ 888,731.

However, this loss arises after a $ 15.7 million non-cash impairment of golfer image rights during the year in accordance with accounting rules.

Net cash generated by the company from operating activities after taxes and interest paid totaled $ 9.8 million for 2020.

In a note attached to the accounts, the directors said that “counterintuitively, the Covid-19 pandemic has served to highlight the resilience of tournament golf, professional golf activity and wider participation in the game.”

They add that “revenues in 2020 have been somewhat impacted by the compressed touring schedule but the medium-term impact on the rights held by the company has undoubtedly been positive.”

The main business of the company is the management of royalty income and management fees for Mr. McIlroy, one of the most marketable players in world golf.

Prize money and other such income are not part of the income of Irish society as they tend to be treated as income and taxed by the country where the income is earned.

During the Covid-19 disrupted US PGA tour in 2020, McIlroy recorded tour income of $ 4.4 million and this year McIlroy’s US PGA tour revenue totals $ 4.39 million.

Last year, the company’s cash flow fell from $ 15 million to $ 5.2 million.

At the start of 2020, the company had a book value of $ 225 million placed on McIlroy’s image rights, which was reduced to $ 209 million at the end of last year.

Rory McIlroy sits on the Board of Directors with his father, Gerry, Donal Casey and Sean O’Flaherty.

Last year, director compensation edged down from $ 2.28 million to $ 2.1 million.

A note attached to the accounts indicates that administrative expenses include $ 1.4 million paid to Mr McIlroy “to equalize the business income he was required to report in the UK”.

The company operating as Rory McIlroy Inc, was formed in late 2013 by McIlroy. The golfer has chosen to locate everything related to his brand and intellectual property in Ireland by setting up his business here as part of a strategy to simplify his business.

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