WRU announces record £64m turnover in annual report

The Welsh Rugby Union had a record turnover of £64.2m last year - its highest ever, its annual report shows.

With the Rugby World Cup just days away, it is a £3.2m increase for the WRU on last year's figure of £61m.

The report says the Millennium Stadium debt, which was about £75m when it was built in 1999, is now £14.2m.

In his last profit announcement before stepping down, WRU chief executive Roger Lewis said the success was down to a "clear strategy".

"I am delighted to be able to announce such a strong financial position before I step aside from my role within the group," he said.

"The past year has yet again proved that our success is based on detailed planning aligned to a clear strategy and a focus and commitment on achieving success."

The WRU reinvested £22.6m into the sport, including £4m for the community game, £1.4m for the premiership and £17.2m for regional rugby.

"We have been able to invest record sums into the game at all levels in the last year and record sums into the Millennium Stadium as well," Mr Lewis told the BBC.

ANALYSIS by Sarah Dickins, BBC Wales economics correspondent

Three Six Nations championships, two Grand Slams and a 2011 World Cup semi-final.

But as well as successes on the pitch, as Roger Lewis steps down after nine years leading the WRU, he can look back on his financial record.

His final annual report shows that Welsh rugby now has record results on turnover, record earnings, record reduced debt and record distribution of support to the game.

Turnover stands at £64,208,000 - 9.7% higher than 2014 but actually not that much higher than in 2012, the previous record turnover.

Pre-tax profits , when an exceptional item has been excluded, stand 37% higher than last year at £2,921,000.

That "exceptional item " is a new financial arrangement with Barclays Bank. The WRU is paying back £10m of debt in return for the bank holding a share in the business.

Mr Lewis strongly denies that there would have been more money for the game had the WRU not put as much emphasis on paying down debts, which stood at £55 million in 2004.

He also denies that getting the debt ratio down was a personal target set for him for which he would be given a bonus or other sorts of financial remuneration.

Another interesting development is the establishment of a subsidiary, MSEL, which in effect takes catering in-house. It is a joint venture with Compass Group but WRU Group owns more than 80% of it. MSEL had a turnover of £8.2 million this year.

Mr Lewis said the WRU would be increasing the number of schools it works with to improve the game from 40 to 80 in the next month.

"Dare I say, if we wanted to be, we could be debt-free very, very quickly but debt is a good tool of business and we can work with the bank to leverage that relationship."