Davies demands fair share of funding to save game
PROFESSIONAL rugby in Wales is facing a fight for survival with the regions calling for a £30-40m injection to keep them alive.
Last week the chief executive of Cardiff Blues, Richard Holland, led the call for Welsh Government support. Now one of the most respected figures in the game, Ospreys chairman and current PRB board member Rob Davies, has demanded a “fair and proportionate share of state funding” to help keep the professional game afloat.
“We’re all in the cart together and we’ve got to fight together to find a way out of a financial crisis that is not unique to us here in Wales,” Davies told TRP.
“We’ve seen the other nations in the UK and in Ireland receive their fair share of government funding. My view is that while they’ve already been given financial certainty in Ireland, Scotland and England, it should be our turn next.
“To ensure we receive the state aid that should be due to us, we have to be aligned. Funding of around £35m£40m in grant and loan is needed to help to move the professional game forward in Wales.
“We opted to take out a £20m loan as an urgent interim solution to give us space to examine our options for the future. Now we need to the right level of funding to be able to play on a level playing field with our PRO14 rivals.”
WRU interim chief executive Steve Phillips sought to keep Cardiff Blues, Dragons, Ospreys and Scarlets afloat by negotiating a £20m loan with NatWest.
That loan must be paid back by the regions over the next five years, while WRU funding to the regions has dropped to just £3m this year due to the pandemic.
The WRU’s annual report for the last financial year published on October 11 revealed a turnover of £79.9m, but the impact of Covid-19 had caused a loss of £5.3m.
That turnover is set to decrease dramatically over the next 12 months with no crowds at either international or regional matches.
Welsh rugby’s current funding model was agreed by the regions, who each have a representative on the PRB. But now the private equity firm, CVC, has taken a 28 per cent share in the PRO14 and is set to change the face of the professional club game.
The WRU annual report detailed the governing body had received £4.9m from CVC’s PRO14 investment. Already there are plans to expand the PRO14 by introducing the top four South African Super Rugby teams and Phillips this week explained the complex issues of the new investment to regional boards and progress with Welsh Government on funding.
“Of course we need more money, but at the same time we have to try to maximise our income by improving our product and our marketing,” added Davies.
“We need £35-£40m to give us a fighting chance and if Steve Phillips or the WRU board needs any assistance from experienced regional directors to help the game through this period I’m sure between the four of us we could find some for him. We have to plan a course out of this pandemic.”
While Holland and Davies are singing from the same hymn sheet, there are others who aren’t as happy with the fact there is a loan facility hanging around the necks of the regions at a time when their income has fallen through the floor.
A top ranking Welsh rugby official claimed: “The four Irish provinces are more successful than the Welsh regions because Ireland are spending £40m on their provinces. They have been for years and that figure excludes the money spent on their academies.
“The WRU have got to help us find ways to push the funding up to £30m as a minimum and get rid of the loan. If this doesn’t happen, Welsh rugby could be set back 20 years.
“When the British & Irish League happens, we won’t be ready for it. What is more dangerous is our best players won’t be playing in the best tournaments because we won’t be qualifying for the Champions Cup as we’ve set the teams up for failure.
“If you look at the other governing bodies, they aren’t doing that. Scotland are getting their act together, Ireland are miles ahead, Italy are close to overtaking us while South Africa are joining the PRO14 which will mean four other teams ahead of us for Champions Cup qualification.
“Wales have got to wake up. CVC at the top are pragmatic investors who just want the best teams. They aren’t going to care if there are no teams from Wales who aren’t good enough. They just want the best teams in the tournament.”