The Welsh Rugby Union is facing some tough decisions
Marshall says the Principality Stadium is “an expensive asset to run”(Image: Huw Evans Picture Agency)
The Welsh Rugby Union’s chief financial and operating officer, Gavin Marshall, has outlined the governing body’s true financial position and the areas it needs to invest in.
As things stand, the WRU is planning to reduce the number of professional men’s clubs from four to three. The WRU says it cannot afford to fund four to a level where they can be successful and also make the necessary investments into the pathway.
The WRU posted a turnover of £106.1m last year, leading many critics to claim the governing body could afford to fund four strong sides if it cut elsewhere – but Marshall denies this.
JOIN OUR WALES RUGBY FACEBOOK PAGE Latest news, analysis and much more
“That’s the headline figure in terms of the turnover but a lot of that is in terms of our expenditure,” Marshall told the Welsh Rugby Union podcast.
“So, we have the investment in the hotel which brings an associated cost of running that hotel, whether that’s matchday or non-matchday. We have the cost of that and we have the cost of running the stadium.
“It’s 27 years old and while it is a fantastic asset, it is an expensive asset to run. When you look at our turnover number, you should be looking at our EBITDA and the profit we are able to generate from that turnover.
“It’s around £30m-35m in terms of that EBITDA. We need to invest in capital expenditure in the stadium.
“We choose to support the community game. We provide grants and funding for the community game and what we’ve got left we invest in the professional rugby game.
“After CAPEX on the stadium and after funding the community game, that figure is more around £20m.”
Marshall admits the WRU have historically underinvested in many key areas but insists the governing body wants to correct that.
Win free tickets to watch Fiji v Wales in Cardiff this summer
“I think we recognise that we’ve underinvested in a number of areas over a period of time,” he added.
“We’ve certainly underinvested in our pathways, our coaching programme, developing coaches and in the women’s game we’ve identified we need to invest more.
“We also recognise that with the clubs it is becoming increasingly expensive to run professional rugby clubs.
“Their costs are going up and we need to balance funding those clubs correctly, because they are geared to success but also enable us to invest in those areas we believe we need to invest in for the long-term health of Welsh rugby.”
Follow all of our channels to ensure you stay up to date with the latest Welsh rugby news. Sign up to our free daily newsletter here and our WhatsApp channel here for all the breaking news.