Golfer Rory McIlroy's management and image rights firm last year suffered a pandemic $9.37m (€8.32m) hit to revenues.
That is according to new accounts which show that the Dublin-based Rory McIlroy Management Services Ltd last year recorded a pre-tax loss of $8.03m.
However, the pre-tax loss arises after a non-cash write down of $15.7m in the golfer's image rights during the year in accordance with accountancy rules.
The accounts disclose that the net cash generated by the company from operating activities after tax and after interest paid totalled $9.8m for 2020.
Revenues at the company last year declined by 38.7% or $9.37m from $24.2m to $14.8m.
The directors of the company stated that "counter intuitively, the Covid-19 pandemic has served to underscore the resilience of tournament golf, the business of professional golf and wider participation in the game".
They added that "revenues in 2020 were somewhat impacted by the compressed tour schedule but the medium term impact on the rights held by the company has undoubtedly been positive".
The main activity of the company is managing royalty earnings and management fees for Rory McIlroy, one of the most marketable players in world golf.
Prize money and other such earnings are not part of the Irish company's revenue because they tend to be treated as income, and taxed accordingly by the country where the earnings are won.
On the Covid-19 disrupted US PGA tour in 2020, McIlroy recorded tour earnings of $4.4m and this year McIlroy's US PGA tour earnings total $4.39m.
The company recorded an operating loss of $6.3m and interest payments of $1.73m resulted in the pre-tax loss of $8.03m.
It recorded a post tax loss of €8.9m after paying corporation tax of €888,731.
But the company’s cash pile last year slumped from $15m to $5.2m.
At the start of last year, the company had a $225m book value placed on McIlroy's image rights and it reduced to $209m at the end of last year.
Rory McIlroy sits on the board with his father Gerry, as well as Donal Casey and Sean O'Flaherty.
Last year, the pay to directors decreased marginally from $2.28m to $2.1m.
At the end of last year, the firm employed five people, which was made up of four directors and one in administration. Staff costs totalled $2.9m.
A note attached to the accounts states that administrative expenses includes $1.4m paid to Rory McIlroy "in order to equalise the company income he was required to report in the UK".
The company trading as Rory McIlroy Inc, was established towards the end of 2013 by McIlroy.
The McIlroy company manages all the royalty payments from the golf star's various endorsements.
Rory McIlroy works in many countries but opted to locate everything to do with his brand and intellectual property in Ireland by setting up the firm here as part of a strategy to simplify his business affairs.
In setting up the firm in the Republic, McIlroy spurned the route often taken by superstar sports personalities by creating a complex structure that would have located his management company in the US while protecting his wealth with tax havens such as the Virgin Islands or Bermuda.
