\n<\/p>\n
Welsh rugby’s struggles have been well documented, as have the WRU’s own issues.<\/p>\n
But the body’s stark financial situation has been laid bare.<\/p>\n
It was stated there is a \u00a335m funding gap for the regions over the next five years, putting the future of all four regions in doubt. However, that particular sum has now been revised as \u00a329m.<\/p>\n
Broken down, the WRU estimates a \u00a31.45m gap in funding per year, per regional team over five years, taking the total to \u00a329m, not \u00a335m.<\/p>\n
Meanwhile, the WRU is currently carrying \u00a320m worth of debt, which it states “is not an unusual number for a \u00a3100m business”. <\/p>\n
The WRU added: “It is not de-stabilising. The business is in a stable condition. <\/p>\n
“However, there is value to be gained from refinancing this debt and this will help us to bridge the funding gap in the professional game we describe.”<\/p>\n
The WRU confirmed the debt is held by the regional clubs, adding that it “has an impact on their ability to raise additional debt finance”.<\/p>\n
As with many businesses, the Covid pandemic added to the WRU’s financial issues.<\/p>\n
The Welsh Government awarded Welsh rugby \u00a313m in grants to help it through the pandemic.<\/p>\n
The WRU has already identified \u00a33m of savings in the professional game in Wales.<\/p>\n