The Welsh Rugby Union Limited (“WRU”) today published its Annual Report which confirmed that re-investment into the game by the governing body is at record levels.
During the last financial year the WRU allocated £22.5m into rugby an increase on the previous period at £22.1m.
In this year’s report the WRU also posted a profit before tax of £2.4m on a turnover of £58.5m for the period.
The total rugby allocations for YE14 stand at just over £4.3m for the community game, £1.1m for the Principality Premiership and £17.1m for the Regions in Wales.
These figures are supported by spending on operating costs which last year stood at £4.3m for the elite game, £2.7m for community rugby and just under £5.0m for the Millennium Stadium.
During the year the repayable bank debt was reduced to £15.0m.
Throughout the year the WRU maintained a focus on the grassroots game and, included in the allocations above, announced a one-off Participation Points Scheme to allocate £750,000 worth of equipment to clubs and a facilities grant of £500,000 to help clubs improve.
The WRU Board also approved a 13% increase in funding to community rugby to £2.6m per annum for the 2014/15 season.
The investment levels were achieved despite a slight reduction in turnover from the previous year.
Other highlights across the year included:
* The announcement of a new rugby strategy to revive the schools game and boost club participation.
* The confirmation of Warren Gatland as Wales Head Coach until 2019.
* Plans announced and progressed for a new Desso Grassmaster pitch at the Millennium Stadium.
* Sam Warburton signed as Wales’ first National Dual Contract player.
* A National League structure unveiled for grassroots rugby.
* Hosting of the last Heineken Cup Final at the Millennium Stadium.
* The successful negotiation of a new Rugby Services Agreement.
During the year the positive effect the Millennium Stadium has on life in Wales was substantiated in an independent survey commissioned by the WRU which reported that the venue delivers a £130m economic impact to the wider Welsh economy which supports some 2,500 full time jobs.
Substantial work was carried out during the year to build on events and projects which will also benefit Welsh rugby and Wales in future.
Eight games from Rugby World Cup 2015 will be played at the Millennium Stadium and the WRU has bid to host the 2018 Rugby World Cup Sevens.
A new WRU National Women’s Rugby Manager will start work to boost the women’s game at all levels in Wales and the WRU will work with Sport Wales and other governing bodies to introduce a number of 3G pitches at key locations.
The Group Chief Executive of the WRU, Roger Lewis, said: “I am delighted that our financial performance across the past year registers clear evidence of the strength of the governing body as a business.
“Yet again we have managed to achieve a turnover which allows us to re-invest record amounts into the game of rugby in Wales.
“The figures show that we are strategically focused on both striving for excellence in the elite game and working to promote increased participation at the grassroots level.
“The levels of re-investment are hard facts which serve to prove that Welsh rugby is determined to maintain its status as the national sport of Wales.
“It is important to emphasise that the money we put back into rugby is all aimed at very clear strategic
priorities.
“We have to re-invest in success at the professional and international level because a successful Wales team is the financial engine which drives our business, but we have to have a strong community game to ensure we bolster our talent pool and support for the game in general.
“I am delighted that our Head of Rugby, Josh Lewsey, has been able to unveil a new rugby strategy which will revolutionise the game in Wales.
“By introducing WRU funded Rugby Officers into our schools we can focus on engendering a love of rugby in our children who we can then be encouraged to enter the community game through our grassroots clubs.
“Our schools and junior fixture schedules have been changed to accommodate this new alignment and we can now concentrate our resources on where the biggest benefits can be achieved.
“Although we continue to live in economically challenging times this Annual Report offers clear evidence
that the WRU has the strength to meet challenges and seize opportunities.
“I want to pay tribute to all our staff, our players and everyone involved in the community game for the incredible volume of hard work which is being achieved for rugby in Wales.”
The WRU Chairman, David Pickering, said: “The financial results for the last year prove that the business of rugby in Wales is in good shape.
“Over recent years we have seen the WRU achieve stability by working efficiently, with a focus on our remit to sustain and develop the sport of rugby in Wales.
“The future prospects for us in Wales are truly exciting with a World Cup looming and eight games from that tournament set to be played here in our capital.
“There is no doubt the WRU and Welsh rugby punches above its weight and I am confident that success will continue.
“Although I am departing as Chairman in the Autumn I look back with pride on the achievements of our Union in recent years and now I urge everyone involved in Welsh rugby to go forward in unity to continue the good work.”
The Group Finance Director of the WRU, Steve Phillips, said: “I am pleased to be able to report that our financial performance remains at a level which continues to support the re-investment levels we want to achieve.
“We operate to a focused rolling financial and strategic five year plan which matches our aims for the business with the income levels we earn.
“During the last year we were able to increase our re-investment to the four Regions and to the community game.
“The level of re-investment we can be rightly proud of as the end result provides a stronger foundation for rugby in Wales.”
