Welsh EGM - Battle Lines

Next Sunday the WRU will experience its first EGM in six years. It is arguable that an earlier EGM back in 2003 led to many of the problems that this EGM will aim to solve. The 2003 EGM created the regions and with it, some of the problems that Welsh rugby is now trying to solve. Only four years before this EGM the WRU built the magnificent Millennium Stadium. This in many ways was the root of the problem. The debt that the WRU incurred as a result of building the venue has been something they have been forced to juggle ever since.

These problems have come to a head in the last year as the crisis affecting Welsh rugby has dragged on and on. The root of the problem is that there is not enough money in the Welsh game and what money there is, many claim isn't being fairly distributed. These money problems have filtered down affecting the clubs and regions far more than those at the top with the WRU and Wales. David Moffett has released an article outlining the financial problems facing the Welsh game and the shortcomings of the WRU themselves.

As the EGM draws closer, this article comes at an important time as it adds more evidence to Moffett’s claims. As he outlines the issues with the WRU, it shows why the clubs have become so keen on the EGM.

The WRU have been repaying this 15-year stadium debt much faster than is neccesary, with many accusing the union of neglecting its clubs. Moffett sees this as a wrong move by the WRU. The clubs were forced to face austerity measures as their funding was cut by the WRU. Moffett states in his article that “the clubs were not consulted” on this issue.

Although the clubs funding has been cut in recent years, the wages within the WRU have increased. Roger Lewis the CEO of the WRU has seen his salary rise in recent years. Lewis has been the target of much of the abuse in the last year from pro-club members of the rugby community. His salary has “risen by 67% from £229,000 to £383,000 between 2007 and 2013.” All these statistics come from David Moffett’s article which he has taken from the annual report by the WRU and is in the public domain.

Moffett’s main concern is with the financial plan of the WRU which has seen them drain the funding of the clubs in order to pay off debts earlier. Moffett argues that if the “WRU had followed the financing plan that existed when I left back in 2005, they would have had approximately £16.6 million more cash at their disposal.” This is money that could go to serious use in the Welsh game.

Moffett says that he would have used £11 million of the £16.6 million mentioned to invest in Welsh rugby. His basic maths works it out as £34,375 going to each club. He then runs down a list ways that the money could have been used to improve the game in Wales. Giving teams kits, creating 3G pitches, helping to subsidise the cost of council pitches and utility bills are all on his agenda. These funds may be made available in the future, but right now the money simply doesn’t exist as there “are no cash reserves in the WRU.” A situation that Moffett finds incredible for a company turning over £60 million.

These proposals from Moffett contrast sharply with the reality and current funding plans from the Union. The WRU have announced plans for a 13% increase in funding for the community game. The £2.6 million sum, due to be injected from July 2014, works out at just an additional £938 per club.  

   Therefore, on one hand, Moffett outlining plans for non-existent money provides no real help to the problems of Welsh rugby and how he will raise those funds is much more the burning issue. However, he does offer an alternative as to how things could be run by the Union, if a large

 scale overhaul of their outgoings was to take place.

This information has been released at a time when Welsh rugby stands at a crossroads; the clubs can have a huge say in deciding the future of the Welsh game. David Moffett seems to have saved his trump card for the final round and the figures in this article paint a grim picture of the WRU. Moffett says the heads of the WRU knew that “if this information got out there would be wholesale revolt.” Perhaps it is unsurprising that Moffett is the one releasing the information as he attempts to force change with his EGM on Sunday 15th June.

It is yet another chapter in the politics of Welsh rugby. The day of reckoning will come next Sunday and as forceful as Moffett’s reasoning is, expect many more twists in the tale yet. This is Welsh rugby after all and will never be a simple story.