The Welsh Rugby Union (WRU) has announced plans for cost savings in 2025 despite record investment in the sport in 2023. Figures released show a total investment of £65.3 million, a £2.4 million increase on the previous year.
However, the WRU has also acknowledged that there will be "cost savings" in 2025, with the organisation citing the need to "ensure the long-term sustainability of the game in Wales". The exact nature of these cost savings has not yet been specified.
The WRU's statement on cost savings comes alongside a clarification regarding the financial performance of the organisation in 2022 and 2023. The WRU has stated that changes to the reported profit and loss figures for these years are due to "technical reasons" related to "fair value movements in the options and investments associated with CVC Capital Partners transactions with the Six Nations".
This refers to the controversial £365 million investment deal signed by the Six Nations in 2021, which saw CVC Capital Partners acquire a 14.3% stake in the tournament. The WRU is a shareholder in the Six Nations.
"For technical reasons, the group's recorded loss in 2023 and profit in 2022 are different after fair value movements in the options and investments associated with CVC Capital Partners transactions with the Six Nations, where the group is a shareholder," said the WRU in a statement.
The WRU has also emphasised its commitment to reinvesting profits into the game. "The WRU has a stated policy of maximum reinvestment into the game annually, rather than retaining profits," they added.
While the recent investment figures are positive, the WRU's focus on cost savings raises concerns about the financial health of the organisation. The potential impact of these cost savings on Welsh rugby remains unclear.
The WRU's Chief Executive, Steve Phillips, has sought to reassure fans and stakeholders about the financial situation, stating that the changes to the financial figures are "historical" and have "little effect on our ongoing business".
âThese adjustments are historical and there is little effect on our on-going business due to restatements made,â Phillips said. âThey are set firmly in the past and do not impact the trading performance of the group. We should also note that we are not alone as a rugby union in this, with other unions around the UK and overseas in similar positions.â
The WRU's announcement comes at a challenging time for Welsh rugby. The national team has struggled in recent years, and the sport in Wales faces competition from other sports and leisure activities. The WRU will need to navigate these challenges while ensuring the long-term sustainability of the game in Wales.
