WRU chief says time is running out for a deal

WELSH Rugby Union chief executive Steve Phillips says the financial impasse between the WRU and the regions has to be resolved soon as time is running out.

Negotiations have been going on for a number of weeks now over the payments the WRU will be making to the four pro teams for next season.

The regions have been hoping for £26m, whereas it’s understood the governing body have been talking about an amount closer to £23m.

Essentially, the figure is an estimate of net surplus income.

So that’s total WRU income (from international rugby and commercial activity etc) minus their costs (community game funding, the women’s game, stadium and staff costs etc).

That surplus, which varies year on year, is distributed to the regions by the Professional Rugby Board.

It’s a payment from the WRU for services provided, primarily access to regional players for all international squad duties.

That payment was slashed from £26m to £3m for this season because of the financial impact of Covid-19, resulting in the Union taking out a £20m bank loan to keep the pro game afloat.

The regions will have to start paying back that loan from July, making their payment from the WRU for next season all the more significant.

The issue remains what the final figure will be.

It’s an impasse that has dragged on, leaving regional coaches still in the dark over what their playing budgets will be for next season, even though we are into late May.

Now WRU chief executive Phillips has provided an update on how the discussions are going.

“I think we are making progress,” he said. “The conversations are positive. I don’t think we are far apart.

Should the WRU meet the regions’ demands? Have your say in the comments section”We have to have a resolution soon because we are running out of time, if nothing else.

“It’s not that long until the start of next season.

“We have estimates on the income that is expected over the next year and we are pushing the boat on those.

“Let’s just say there are challenging targets for us. It’s fair to say we are trying to make every penny we can available to the regions. That, to be honest with you, is what the PRA tells us to do.

“We are definitely in that space. “Whether that gets to perhaps where the regions want us to get to is a different question. But we are definitely trying as hard as we can to make the funding available.

“The best example, leaving aside the rugby benefit, is the New Zealand match in November.

“That makes a huge difference.”