Regions soon to hear loan repayment deal
WELSH Rugby Union chief executive Steve Phillips is confident negotiations over the refinancing of the £20m CLBILS loan will be concluded within the next three weeks.
The WRU negotiated the Coronavirus Large Business Interruption Loan Scheme for Wales’ four professional sides at the start of the pandemic to avoid financial collapse.
But the terms of the loan were not favourable to the regions who were originally expected to pay it back over a three-year period.
The WRU made the interest payments which Cardiff Rugby, Dragons, the Ospreys, and the Scarlets will have to pay back once the loan is renegotiated.
“We are pretty much agreed in principle, and I’m very optimistic,” said Phillips. “It is agreed, and we are now at the documentation stage.
“Let’s just say we’ve been delayed two to three weeks due to crowds or no crowds etc. It’s all in hand, and it’s imminent that we’ll be concluding this. I’m hoping to do it in the next two or three weeks.
“We had to do the CBILS at the time because that was the only thing available to us.
“CBILS will get refinanced with the Welsh Government hopefully over the next couple of weeks, and then the deal becomes effectively a refied nance with Welsh government.”
The regions have questioned the morality of the Union taking out a loan in their name and expecting them to pay it back on unfavourable terms.
Last year the payments they received from the WRU fell from £20m to £3m despite providing a significant number of players to the national side.
But Phillips has defendthe WRU’s stance and insists if he hadn’t taken out the loan the regions could have gone to the wall.
“I’m pretty confident that would have been the answer,” said Phillips when asked if the regions would have gone bust without the loan.
“In terms of the structure that is now in place that was all agreed at PRB level.
“There’s documentation reflecting it. In terms of what we are now doing it’s everything we discussed and agree at PRB (Professional Rugby Board) level.
Before Christmas Welsh rugby was rocked by the news that the chair of the PRB, Amanda Blanc, was leaving.
Blanc is also CEO of Aviva and was recently listed inside the top 30 of Forbes’ most powerful women of 2021, even above the Queen.
And despite many rumours surrounding her departure Phillips refused to be drawn on the point.
When asked if Blanc left because she disagreed with the corporate governance at the Union, Phillips replied, “Not that I’m aware of.”
He added: “I think what we have to recognise is that Amanda has done a great job in very challenging circumstances. She came in straight into the pandemic. She’s been great, so I think Welsh rugby owes her a massive sense of gratitude. A head-hunter has been appointed to find her successor, and we want it resolved as soon as possible.”