The reality for the IRFU is that the branches are not making the revenues to support their running costs - specifically the branches contribution to player salaries. All of them are being cut back, and squad numbers reduced for next season with lower cost personnel. The IRFU budget for a total spend of €38-39m each year for their test squad and costs of the four branches. The branches incur a further €12m of additional/top-up salary costs for players/management/coaching resources which the IRFU pay upfront and then re-charge that to branches at season end.
During Covid, the absence of fans meant the IRFU had to pay for everything and used CVC PRO14 investment funds and a government grant to cover the extra cost. Subsequently, both Munster and Ulster have been unable to repay due to missing out on knockout games, and their debts were eventually converted to long-term loans. But the IRFU is still picking up the 'extra' salary bill and they seem determined to reduce that and make the branches operate to more realistic budgets.