'Future-focussed' Wales report financial results

NEWS: Despite a ‘challenging year’, the Welsh Rugby Union reported a increased turnover in its latest annual report.

Group Chief Executive Abi Tierney has told the Welsh Rugby Union’s member clubs ahead of Sunday’s Annual General Meeting that turnover has increased to £102.7m (2023: £97.9m) during the last financial year and that investments into the game at large totalled £60.4m.

The Group’s operating profit before distributions decreased slightly from £23.5m in 2023 to £22.7m in 2024.

The on-going impact of Covid allied to high inflation played their part in affecting the figures, with operating costs rising from £67.1m in 2023 to £75.1m in 2024.

Increased costs for the senior men’s national team in a World Cup year, along with strategic investment into women’s and girl’s rugby, added to the increase in operating costs.

Payments to the four professional regional clubs over the year totalled £28.7m, down from £35.5m in 2023. This is largely down to payments made to the regional clubs in line with the new Professional Rugby Agreement.

The WRU Group divested the Dragons during the year for a nominal cash consideration of £1. The Dragon’s financial results have been classified as ‘discontinued operations’ within the WRU Financial Statement, contributing to the post-tax loss of £2.6m to the Group (2023 £9.2m).

“This year’s annual report comes against a backdrop of a challenging but incredibly future-focused time for Welsh rugby,” said Tierney, who will complete her first year at the helm of Welsh rugby in January 2024.

“As my first year as your Group CEO comes to a close we have already laid out our direction of travel for the next five years with the publication of our headline ‘One Wales’ strategy this summer.

“The need to establish financial stability features at the core of the strategy and is essential to shaping a sustainable future for the game. As we continue to rebuild following Covid inflationary pressure, the necessary continued investment into rugby and the stadium has increased the Group’s operating cost base.

“The WRU has been presented with a number of financial obstacles this year and previously, including a period of high inflation. The high interest rates and a high inflation economy has had a direct impact on consumer spending trends and a reduction in disposable income which has been felt across the UK, not just in Wales.

“This in turn has affected ticket sales and match income. Our aim, as ever, is to maximise the re-investment into rugby each year and despite the current financial position £60.4m was re-invested into Welsh rugby over the financial year.”

Reporting on other aspects of the Group performance, Tierney was delighted to outline a growth in commercial partnerships.

“Our commercial partners and sponsors have shown unwavering commitment and dedication to Welsh rugby. We are very grateful to them. This is an exciting space with so much potential and currently represents over 17% of our total income and has seen an increase in the year,” added Tierney.

“We all know the benefits of sport are far reaching, and the benefits of rugby on local communities, and for Wales on a wider global scale are also far reaching.

Our new strategy is underpinned by a ‘One Wales’ view, drawing on large-scale ambitions and uniting in our collective passion for the game to drive success both on and off the field.

“Despite a challenging climate and rising costs, we completed our first full season of rugby post-Covid and recorded the highest number of registered players across the girls and boys, and men’s and women’s games.

“I’d like to take this opportunity to recognise and thank the team, along with the army of volunteers that enable our grassroots game to not only continue, but flourish.

“Our ‘One Wales’ strategy will provide a clear direction that will take Welsh rugby on a journey to a prosperous, flourishing and sustainable future by 2029. We will be guided by it and held accountable to its ambitions, which are underpinned by a mission and a commitment to ‘work together to create exceptional experience and opportunities for everyone through our game.'”