The four Irish provinces will have to contribute 40% to Ireland’s national player contracts from August 2026 – as opposed to 30% – the Irish Rugby Football Union (IRFU) has announced.

With Leinster having by far the biggest number of nationally contracted players, the Dublin-based team will be the most financially affected by the decision.

The IRFU said that funds generated by this change will be invested in the player pathways of Connacht, Munster and Ulster, overseen by performance director David Humphreys.

Ulster head coach Richie Murphy welcomed the move to help the province close the “massive gap” to Leinster.

“We don’t have any central contracted players so we are not paying out for them so if there is money coming back in and it comes to us that will have an impact, so it sounds like a positive move for Ulster,” he said.

The altering of the funding model comes following an IRFU review into what it described as the “evolving financial landscape of Irish Rugby and the need to maintain the competitiveness of the national and provincial teams”.

“Since last year, we have worked tirelessly with the provinces, players, and our various stakeholders to design a funding model that balances the demands of national and provincial success,” said IRFU performance director Humphreys.

“This adjustment follows our initial commitment in May 2024 to review the funding percentage, ensuring the model remains equitable and financially sustainable for all parties involved.”

The IRFU said that the updated funding model would be monitored “on an annual basis”.

The governing body’s statement added that it had also “commenced an organisational efficiency review”.

“Financial sustainability is a global challenge for the game, and we are not immune to that,” said IRFU chief executive Kevin Potts.

“We may not be able to continue to do everything that we currently do and deliver on our strategic ambitions. As stewards of the game, it is our responsibility to ensure that we are managing our resources in a way that secures the future and ongoing success of Irish Rugby.”