Welsh Rugby Union: Outgoing chief executive believes organisation will require bailout

Departing chief executive Martyn Phillips (left) with outgoing WRU chairman Gareth Davies

Departing Welsh Rugby Union (WRU) chief executive Martyn Phillips told the annual general meeting he believes the organisation will eventually need a government bailout.

Phillips issued the stark warning as he outlined how the WRU were coping financially with the effects of the coronavirus pandemic.

Ex-Wales captain Ieuan Evans is also in line to be appointed to the WRU board.

This was the WRU's first virtual AGM with more than 240 clubs logging on.

New interim chief executive Steve Phillips had previously raised the prospect of government intervention and suggested the WRU could lose £35m of revenue if the home autumn programme and 2021 Six Nations were played behind closed doors.

The WRU executive board have taken a 25% pay cut, while other staff members had taken a 10% wage cut.

At the AGM, Martyn Phillips praised the efforts of the WRU but, stressed his opinion, the organisation was coming towards the end of their own collective financial efforts and it was almost inevitable the WRU would require government help.

The WRU has already negotiated a £20m loan from NatWest Bank to help regions survive over the next 12 months.

Steve Phillips gave a financial presentation for the year ended 30 June 2020 which has shown a loss of just over £5m.

"We are pleased to welcome our new and returning board members and look forward to working closely together in the years ahead," said Phillips.

"Welsh rugby, like many other sports and organisations around the globe, is enduring difficult circumstances at the moment but our strength is in our member clubs, the collaboration and passion of volunteers up and down the country and our collective dedication to the pursuit of success in the professional game.

Martyn Phillips at the 2020 Welsh Rugby Union annual general meeting

"We made a £5.3m loss in the year ending 2020 and the true impact of the current pandemic may not be felt until the conclusion of the year ahead, but we will be doing all that we can to mitigate its effect in the days, weeks and months to come.

"It is our stated ambition to ensure all member clubs and the whole of Welsh rugby survives this crisis intact."

Martyn Phillips also said he believes tournament structures will change and the women's game in Wales will become professional sooner rather than later.

The meeting was held entirely online due to the social distancing restrictions currently in place.

There were addresses from new president Gerald Davies and farewell speeches from departing chief executive Phillips and chairman Gareth Davies, who lost his seat on the National Council last month to Ieuan Evans.

"I know I speak for both myself and Martyn when I say we are proud to leave with the WRU's reputation, both at home and globally, enhanced and are honoured to have served," said Davies.

"We are proud to have conducted ourselves with the utmost honesty and integrity throughout our every action and achievement at the helm of Welsh rugby over the last six and five years respectively.

Ex-Wales wing Ieuan Evans was a member of the 1989, 1993 and 1997 British and Irish Lions

"I know I will be followed as chair of the Welsh Rugby Union by someone who also has Welsh rugby's best interests at heart. It is a job that demands this and I wish my successor every success for the future."

At the first meeting following the annual general meeting, the 19-strong WRU Council officially elect or re-elect four of its members - including one of the National Council Members - to join the 12-strong WRU board.

No official details were given of the board appointments at the AGM but Evans is favourite to be elected.

The board will then elect a new chair, and if Evans is selected onto the board, he will be in the running alongside other candidates like Rob Butcher for the top WRU role.