Welsh rugby’s struggles have been well documented, as have the WRU’s own issues.
But the body’s stark financial situation has been laid bare.
It was stated there is a £35m funding gap for the regions over the next five years, putting the future of all four regions in doubt. However, that particular sum has now been revised as £29m.
Broken down, the WRU estimates a £1.45m gap in funding per year, per regional team over five years, taking the total to £29m, not £35m.
Meanwhile, the WRU is currently carrying £20m worth of debt, which it states “is not an unusual number for a £100m business”.
The WRU added: “It is not de-stabilising. The business is in a stable condition.
“However, there is value to be gained from refinancing this debt and this will help us to bridge the funding gap in the professional game we describe.”
The WRU confirmed the debt is held by the regional clubs, adding that it “has an impact on their ability to raise additional debt finance”.
As with many businesses, the Covid pandemic added to the WRU’s financial issues.
The Welsh Government awarded Welsh rugby £13m in grants to help it through the pandemic.
The WRU has already identified £3m of savings in the professional game in Wales.
A WRU statement read:, external “This money is saved by the introduction of a shared services collaboration with the four regional clubs in an agreement which forms part of the ‘One Wales’ strategy.
“This is an annual cost efficiency and has been considered in calculating the funding gap described.
“A new head of commercial growth officer appointment will oversee this shared services work as well as seek to grow the commercial value of the professional game in Wales – to further bridge the funding gap.”
