WRU chief executive Steve Phillips hopes for £30-£40m package by end of January

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Steve Phillips has worked at the Welsh Rugby Union since 2007Image source, Chris Fairweather/Huw Evans Agency
Image caption,

Steve Phillips has worked at the Welsh Rugby Union since 2007

Welsh Rugby Union (WRU) interim chief executive Steve Phillips says he is hoping for a Welsh rugby financial package of between £30m and £40m from the Welsh government.

Phillips is hoping any deal could be agreed by the end of January.

That would cover the whole game in Wales that has been affected by Covid-19.

England, Ireland and Scotland's rugby authorities have been offered financial packages by their governments.

The UK government's package last month saw £135m pledged to rugby union in England as part of the £300m winter survival package.

Provisionally the Rugby Football Union (RFU) - which governs the sport in England - is set to receive £44m, Premiership Rugby clubs are expected to get £59m, Championship clubs £9m and community clubs £23m.

Rugby union in Scotland will receive £20m. Of that £5m is in loans and £15m in grants.

Sport Wales will represent Welsh sporting bodies in the process. It is the national organisation responsible for developing and promoting sport and physical activity in Wales and is the main adviser to the Welsh government on sport.

"I would like to think we have probably something in good shape by the end of January possibly, but a lot of things still have to happen by then," said Phillips.

"I think we are looking between £30m and £40m and that would align with Scotland. We have more professional teams and have a bigger turnover.

"If we can get something in place by the end of January it gives us plenty of time to work through the detail and be in a good place for the start of next season.

"When I say £30m to £40m, it's a collective package. It's not just the WRU or the regions or the community game only. It's a conversation within Welsh rugby on how that resource is best deployed."

The WRU posted a £5.3m loss for the last financial year. The situation is now more acute with the WRU facing the prospect of no crowds for the 2021 Six Nations home games against Ireland and England.

That would mean a £14m revenue loss to add to the £21m already suffered in the autumn internationals, a shortfall of £35m for an organisation that turned over £80m last year.

No Six Nations change

Phillips has said the tournament is locked in for early next year whatever happens, with Wales hosting Ireland on 7 February and England 20 days later.

"We've got no real expectation of crowds. I can't even think that conversation is going to begin until the end of January," added Phillips.

The WRU initially negotiated a £20m bank loan to help the four professional regions survive over the next 12 months.

The money has to be paid back by Cardiff Blues, Scarlets, Ospreys and Dragons over five years. The regions were expecting to share £25m this year before the pandemic but that dropped to £3m.

The WRU has been accused of lagging behind the other home nations. It is something Phillips refutes.

"I would push back on statements saying it has taken so long," said Phillips.

"The journey began back in April when we were actively talking with government about addressing the issues.

Image source, Getty Images
Image caption,

The Principality Stadium, Cardiff, was transformed into a field hospital to treat coronavirus patients before being decommissioned

"We were encouraged to get sufficient information systems in the commercial market, which we did but that's evolved now.

"We are in regular dialogue with the Welsh government and Sport Wales who are now administrating the process.

"I think we will see a package put together by government for sport in Wales and we will be a substantial part of that.

"There's nothing wrong with being the last as well but I don't think we're behind anybody.

"We've seen announcements elsewhere but that's all they are. We're about to get into the same sort of place.

"It is about getting a fair, proportionate package in a timely manner. That's the issue but I wouldn't accept we are way behind."

Cardiff Blues chief executive Richard Holland had earlier this month called on the Welsh government to rethink its financial offering. There are signs the regions were getting impatient.

"It is not a matter of appeasing them, it's more working together," said Phillips.

"They are probably getting a little bit [impatient] but it's a fair point they are raising because from a regional perspective you're seeing the announcement to PRL."

The WRU had been liaising with the RFU in the initial process before the Department for Digital, Culture, Media and Sport (DCMS) pledged the £135m to the English rugby governing body.

"When the announcement came out from DCMS it was always going to be about English rugby because the sport is devolved in Wales and Scotland," said Phillips.

"I think the RFU did a good job of clearing the path bearing in mind it was UK government that went first.

"It's a lot easier now for us to tread the same path if you like that England have done. Scotland and us will do exactly the same thing.

"There was no real expectation we would have been included in the UK government's announcement, but we've all seen stranger things, so why wouldn't I stay in the conversation? It was the right thing to do.

"But the fact the DCMS announcement came out as England only was no great surprise."

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