Welsh Rugby Union is facing £35m hit to its income due to virus

THE Welsh Rugby Union Group has reported losses of £5.3m fuelled by the impact of having to postpone the Six Nations match against Scotland, but said if all of Wales’ forthcoming autumn games and home matches in next year’s Six Nations have to be played behind closed doors it could hit income by £35m.

The union said is was on track to break even for its last financial year to the end of June 2020, before the pandemic struck in March, but said a number of measures taken, including putting on hold nonessential capital investment, reducing staff salaries and utilising the UK Government Coronavirus Job Retention scheme, helped to mitigate the financial hit.

While there remains uncertainty, with numerous outcomes still possible, based on a scenario of no crowds for the rearranged Scotland game at the end of this month, which will almost certainly be the case, and the three home games in the Autumn Nations Cup, the WRU could see a loss of revenue of up to £21m from ticket, hospitality and other match day related spending like on beer and food.

If Covid restrictions continue into next year with the two Six Nations games at the Principality Stadium against England and Ireland having to also be played behind closed doors, that could result in a further up to £14m loss in revenue — resulting in a total £35m revenue hit from international games.

Chief executive of the union Steve Phillips said that based on no crowds for home international games this season this could see the union making losses of another £5m for the current financial year — assuming it doesn’t receive any government financial support for the game, which it is hopeful of.

The cancellation of the Six Nations game against Scotland at the Principality Stadium back in March, with lost TV and related match day income, induced an £8.1m revenue hit for the union. The television income from the game will though flow into this year’s financial accounts with the match being played at Parc y Scarlets on October 31.

It also lost revenue last season through the cancellation of Judgement Day, involving derby matches featuring the four Welsh regions and a Rammstein concert.

For the year it posted a turnover of £79.9m (£90.5m 2018-19) with pre-tax losses increasing to £7.9m (£4.2m losses 2018-19). The union’s retained loss for the year was £5.3m (£4.3m loss in 2018-19), following deferred and tax credits of £2.6m.

Mr Phillips said a decision on whether the home game against England in the Autumn Nations Cup as well as the finals day game of the competition, will be played in London or in Wales, should be known in around two weeks’ time.

If no crowds are allowed, the two games are expected to be played in Wales. The game against Georgia has already been confirmed for Parc y Scarlets.

Mr Phillips, the former union finance director, recently succeeded Martyn Phillips as chief executive in an interim capacity.

If restrictions preventing any crowds continue into next year, he said: “It’s an ongoing work stream, but if there are no crowds for the two games in the Six Nations 2021 the ballpark range is something between £12m and £14m in terms of what we would not get and would ordinarily have expected to have received if there was no Covid.

“With England and Ireland we would have full expectations of selling out both games and on hospitality too. If you look at the Scotland game and three home Autumn Nations Cup games, that would be a loss of revenue on what we would have ordinarily expected of around £19m to £21m.”

On losses for the current financial year he said: “If you assume no crowds and government support, we could lose up to another £5m, but there are so many what ifs in that.”

He added: “While we have sufficiently robust banking facilities, there is no doubt that the 2020-21 financial year is when the full impact of this pandemic could be felt.

“However, we can be proud of what we have achieved so far and, under present circumstances, only making a £5.3m loss in year end 2020 can be viewed in a positive light, but there is also much hard work ahead, just as there is for all in the sports, leisure and entertainment industries.”