Connacht's naming rights deal to offset over €40 million cost of redeveloping Sportsground

Connacht Rugby CEO Willie Ruane.

THE COST of developing the Sportsground has jumped by €10m since it was announced in 2018 and it will now cost over €40m when it is built over the next two years.

But a new 12-year naming rights for the venue is going to help offset the cost of the increase for Connacht Rugby.

The venue known as the Sportsground since it was opened in 1927 will from this Friday morning now be Dexcom Stadium following confirmation of the sponsorship deal with the US multinational medical company which is about to start work on developing its first European manufacturing plant in Athenry.

The stadium has been rebranded overnight and the Dexcom logo will be displayed throughout the venue for this evening’s Champions Cup clash with Bristol Bears.

Capacity is currently just over 6,000 with a facility to bring it up to 8,000 by installing temporary stands behind each goal. The new capacity, when the stadium is fully open during the 2025/26 season, will increase to 10,000 with a further 2,000 extra behind each goal as before.

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The development also includes a modern high-performance centre, while the new North Stand will have conference facilities and other non-matchday earning potential.

The proposed redevelopment was impacted by Covid but Connacht chief executive Willie Ruane said that the extra time allowed them to increase the finance pot for the works, with over €6m set aside from their share of the CVC buy-in to the Six Nations, and while the Dexcom deal is not front-loaded and will come in the form of annual payments for the next 12 years, it has allowed them greater stability, while they are also availing of additional credit facilities and donations.

This has allowed them to deal with the massive jump in the cost of the project, which was initially priced at €30m when it was announced in 2018. Government funding was confirmed for €20m, with Connacht raising the remaining €10m through their own funds and credit facilities.

The IRFU are not making a direct financial contribution but Ruane said they were supportive on many other fronts and were key to the project. Contracts were signed last week for the project so the cost of just over €40m is now set in stone and Ruane said they were confident they had the financial package sorted.

“It is in excess of €40m. It is a significant jump but what it did was enable us to increase our own funding as well,” he said.

Work will start in March on building the new high-performance centre, which will be attached to the existing standalone gym. Then, when the season is over, the Clan Stand and existing office blocks, which were developed two decades ago, will be knocked down. That side of the ground will be out of commission for all of next season and into the 2025/26 season until the works are complete.

The capacity of the ground will be reduced to between 3,500 to 4,000 next season. Office staff will work from home similar to the Covid period, while temporary dressing rooms will be introduced for players to continue training at the venue and for matchday.

The new North Stand, which really will be the fulcrum of the redeveloped stadium with bars, shops and catering facilities, will have a capacity of around 7,000. This will include a standing terrace at the front for 1,900, then 4,000 seats at the next level, while on the upper level, there will be corporate facilities catering for around 900 and this will also be the venue for non-matchday conferences.

“It’s the non-matchday revenues which could have some of the most significant potential to be able to move us to another level in terms of our revenues,” added Ruane.

He said the deal with Dexcom, a company that has its headquarters in San Diego and is renowned for manufacturing glucose monitor devices, which help manage diabetes and is about to create 1,000 jobs in its new Athenry plant, is key to the whole development.

“It is a critical enabler of the whole project for us. We are delighted that we have managed to develop a relationship with Dexcom and that we have them as partners going forward.

“We are very proud to be associated with them. The product they make is a product which affects lives and we have members of staff who use that product and it has transformed how they manage diabetes in their lives,” added Ruane.