Welsh rugby’s funding row is finally ended
THE regions have finally reached an agreement with the Welsh Rugby Union over the funding they will receive from the governing body over the next two seasons.
The professional game in Wales has been embroiled in a long-running financial dispute, which has made it virtually impossible for the teams to plan for next season.
It is believed they were holding out for a payment of £26 million next season but the agreement, which was passed by the WRU board earlier this month, will see them receive £23m next season and £23.5m the following year.
They will also now be receiving £5m for year ending June 2021. They were previously due only to receive £3m.
The money will now be distributed to each individual region by the Professional Game Board (PRB), which includes representatives from all four regions. The amount each region receives is based on a number of different criteria, including how many players each team contributes to the Wales squad, for example.
Whilst a longer term clarity over the payments will be welcome - it has previously been done on a year-by-year basis - and allows the regions to plan more effectively, the figures are still subject to the Professional Rugby Agreement (PRA).
That means that if the WRU have another disastrous year financially, as they did in the last 12 months due to
Covid, then the payments are unlikely to remain as quoted above.
“The PRB has worked hard on this latest agreement and we are confident we have found a solution that meets the short term requirements of each of our four regional sides,” said WRU CEO Steve Phillips.
“The WRU Board is delighted to approve this solution to provide further stability to the professional game, in these most extenuating circumstances.
“The projected funding described is naturally subject to fluctuation depending on circumstance - as we all know well from recent experience - but it is also acknowledged by all parties that parameters, within which we can all operate, must be set as far in advance as possible, in order to facilitate the necessary planning process.”
Whilst news of the payments is welcome, there is still nothing on the proposed restructuring of the £20m loan that was taken out by the WRU to help the regions survive the pandemic.
Under current arrangements, the regions themselves will be tasked with repaying that £20m over a five year period.
The WRU insist they are attempting to renegotiate the terms of the loan to stretch the repayments out over a longer period, easing the financial burden of it.
But there has been no news over whether or not those talks have been successful.