By Paul Jones

A headline strategy for the entirety of Welsh rugby – long on ambition, but short on detail – has been unveiled by the Welsh Rugby Union with stark warnings about the financial obstacles that must be overcome.

The Union have outlined five key targets for the next five years: ensuring the men’s and women’s national teams consistently rank in the top five globally, having the regions contend in play-offs, increasing the number of active participants, achieving financial sustainability at all levels, and enhancing the percentage of the Welsh public with a positive view of Welsh rugby.

In October, the WRU will release its comprehensive strategy, where major decisions will be made.

The primary focus is clearly on funding the professional game in a way that ensures success.

This will depend on the Union and regions’ ability to grow income and reduce debt. Failure to do so significantly could result in a seismic shift for Welsh rugby.

At a Principality Stadium briefing on the 25th anniversary of the first game at the venue, chief executive Abi Tierney and chair Richard Collier-Keywood spelt out the WRU’s financial difficulties.

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They said the union has been operating well beyond its means with an annual deficit of £15m as it struggles to pay off £24m of debt, largely blamed on Covid.

The pair conceded regret that the previous WRU regime had sold some of its share of United Rugby Championship (URC) and Six Nations media rights.

They also confirmed there is a £35m funding gap for the regions over the next five years, putting the future of all four regions in doubt.

WRU chair Richard Collier-Keywood acknowledged the financial challenges the governing body faces due to the Covid-19 pandemic.

“The WRU was running a financial deficit of around £15m per year which was funded by the disposal of WRU assets, reducing our income potential for the future,” he said.

“We will shortly publish the final version of our accounts for the year ended 30 June 2023 which will include some substantial changes, but which now give us a sustainable financial starting point.

“Covid had been a major cost for the professional and community game in Wales and despite the £13m of grants from the Welsh Government in total, to the four regions and the WRU, we have been struggling to recover from the approximately £20m of debt incurred by rugby in Wales.”

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While announcing the strategy, CEO Tierney stated: “We have created something that we can all be really proud of, something which will see us rise sustainably to new heights by 2029.

“We have challenged ourselves to be ambitious, but also realistic and rigorous in our decision making.

“One exciting aspect at the heart of the strategy is a commitment across all elements of the professional game to share resources and expertise, meaning we, across the regional clubs and the WRU, will collaborate much more closely on and off the pitch.

“This will include the new ‘head of growth’, who will help us to grow our revenues and bridge the shortfall in the funding required for our teams to thrive and compete at the highest levels.

“Above anything, we will ensure this strategy is achievable in every aspect, with the ability to show the scope and range of our commitments and to cost them accordingly. We will be completely transparent in this process and announce more detail in the months ahead.

“An increase in financial discipline, process and rigour is an immediate focus for us, as we know we have been spending more than we have been bringing in in recent years. This strategy is about professionalising all aspects of how we operate and govern the WRU.

“Together with these plans to right-size the organisation and ensure our spending is in line with our income, we must also grow in core areas, to reinvest in all aspects of the game.”

Two major takeaways on the former and current WRU regimes;

– Steve Phillips & co did such immense damage to Welsh Rugby, it’s difficult to overestimate.
– Abi Tierney & co seem to have no idea how to increase revenue, only cut, cut, cut.

Tough times.

— Cardiff Rugby Life (@CardiffRugbyWeb) June 26, 2024

As part of the wide-ranging plan, the WRU will explore options for income growth through a comprehensive review of every facet of the professional game over the coming months, aiming to make progressive choices that will challenge past practices. The complete five-year plan will be published in October.

Cardiff, Dragons, Ospreys and Scarlets saw their funding slashed by £2m each last season and will see it cut further to £4.5m for 2024-25.

But the WRU anticipates each team requires a further £2m each year to be competitive.

“The level of investment required to make four regions competitive is significant and we have a significant gap to close,” said Tierney.

“There are ways to address that, by growing income or restructuring the debt, but if we can’t do that, then perhaps we need to look at the regional structure.

“That could involve looking at different funding models, of two having more money than the other two, or three and one, but the priority is closing the gap.”

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