Part III: The finances driving the game
About the ‘In focus’ Series
On the 1st of September, the WRU launched its consultation into the future of elite rugby in Wales and started a month-long conversation giving supporters, players at all levels, rugby volunteers, clubs and communities their chance to help shape the next chapter of the game. Throughout this period, our ‘In focus’ series will take a closer look at specific elements of the consultation and provide a more detailed look at key elements of the WRU consultation document and help provide further clarity on why we feel that change is needed.
Introduction…
This week we will look at the finances driving the game
Finances are the foundation upon which every part of rugby in Wales depends. The ability to invest in players, competitions, facilities, and the community game is only possible if the WRU has a sustainable financial base.
Eighteen months ago, the picture was stark. Without urgent intervention, the WRU was on track to exceed its banking facilities and compromise the future of the game. Today, thanks to decisive leadership and difficult decisions, the picture has changed. The WRU has stabilised, is growing revenues, and has the opportunity to reinvest with confidence.
This turnaround is the backdrop to the consultation. It means we are no longer simply asking how we survive but asking how Welsh rugby is to thrive. In this ‘In focus’, our Chief Commercial Officer, Leighton Davies, looks to the finances underpinning Welsh rugby, the turnaround achieved so far, the current pressures facing the professional game, and the choices financial stability allows us to make.
Where are we right now with…
Finances
The last financial year has shown clear progress:
* In April 2024, shortly after the appointment of Abi Tierney as Chief Executive (in January 2024), the WRU faced a projected overspend of £11m, even after including money from the deal done with CVC. Immediate steps from Abi and the Executive team, which included a ‘root and branch’ review of the WRU cost base and operating structure, brought that down to £7.8m by June 2024, powered by the strongest event calendar in Principality Stadium’s history
* Turnover for 23/24 was £102m and for 24/25 £104m (subject to audit), an increase of around £2m year-on-year which is exactly in line with the challenging plan the new WRU Board had called for – an ambitious plan for a turnaround of finances, to drive growth and getting the business back on track.
* Trading profit, before distributions to professional and community clubs, grew from £27.6m to £36.5m in the year to June 2025. That is a 32.5% increase and a significant turnaround in the first year. This EBITDA (earnings before interest, tax, depreciation and amortisation) figure, of £36.5m, is expected to grow again next year to more than £41m (25/26).
* The WRU Group continued to make losses in the last financial year, but these have been reduced from£10.9m in the year to June 2024 to £4m (24/25). The underlying trading is a significant turnaround.
* The WRU’s cost base in 2023/24 was £75.2m, this was reduced by £7.3m to £67.8m last year, by applying commercial acumen and stronger procurement principles. That was also set against around £900,000 worth of inflation on the stadium through utility and general inflation costs facing the business.
* Distribution to the regional clubs went up by 7% during the year and funds given to community clubs also rose slightly during the year
Looking forward, the union is tracking to deliver record revenues of £117m in the current financial year to the end of June 2026.
This is a genuine turnaround. A business that was in danger of slipping backwards is now stable, refinancing its debt and looking to enter a growth period and capable of investment.
WRU Chief Commercial Officer, Leighton Davies, says: “In a year under the leadership of Abi Tierney, we’ve gone from fighting to survive to financial stability.
“I am confident that next year we will improve a step further, as most of that revenue has already been locked in when you think of the concerts we’ve already confirmed with Metallica, Take That just announced, and another big act still to confirm.
“Our calendar for next June is already pretty busy for events at the stadium. With the growth coming in this financial year we are looking at a record turnover for the WRU of £117m and generating cash.
“The numbers show real resilience – not just in stabilising our position, but in building the kind of growth that means we can put more back into rugby across Wales. The most important question now is how best to invest that money.
“This underpins our business strategy to drive growth from a sustainable financial foundation and when you consider the challenges facing the global game, we are pleased with the progress made so far.
“Today, it’s about how we use our financial strength to unlock the game’s potential. This is a huge shift, and it gives us the confidence to look ahead with ambition.”
What does the consultation document say on…
Financial sustainability
The consultation document is candid. While the WRU itself is on firmer ground, the professional game faces significant challenges. Rugby is arguably facing a perfect storm of financial pressure worldwide. Broadcast and commercial revenues are under pressure, operational costs are rising, and fans have more competing demands on their time and money. Many unions are finding that former income streams are no longer enough to cover the growing cost of running the professional game.
In Wales, these global headwinds hit hard. The consultation notes that our professional clubs are “not funded at a level where the men’s teams can compete,” with costs rising faster than income and a growing reliance on private investors. At the same time, Welsh-qualified players are often tempted abroad because of pressures on the financial marketplace, weakening competitiveness at home.
In summary the game in Wales is facing the following challenges,
* Broadcast and commercial revenues are in decline, placing pressure on regional clubs.
* Operating costs continue to rise, including employment taxes and insurance.
* The financial modelling suggests that under current arrangements (PRA25) private investment would have to increase from an initially predicted £22m over five years to £41m over five years, in order to maintain the status quo.
* We have therefore reached the conclusion that the pre-existing financial model of four equally funded professional clubs is not sustainable in the long-term.
The WRU has already been able to make investments in Super Rygbi Cymru, women’s rugby and pathways. But in totality we believe the system is stretched too thin. Without reform, the pressures felt now will only deepen, which is why the consultation document set out options for more sustainable, competitive, and focused professional structures. The consultation looks at options ranging from maintaining a four-club model but with differential funding, to reducing to two professional clubs.
A proposed optimal system, that has at its core a two-club, four team model (with both men’s and women’s rugby a central focus), was identified as offering the best balance of financial stability and performance as it would concentrate resources, ensure competitiveness, and create headroom to invest not just in our elite teams, but further in pathways, Super Rygbi Cymru, and the women’s game.
WRU Head of Rugby and Elite Performance , Dave Reddin, adds: “The consultation is honest about the pressures facing the professional game. We believe the professional club model as it stands is too stretched. We need to look at how best to use our resources so we can enable our teams to be competitive on the pitch and be sustainable off it.”
Investing just in the elite game might solve performance problems in the short term, but it would leave us unable to invest as much as is necessary in the longer term to grow the whole game and create an efficient system for professional rugby both on and off the pitch.” How the financial turnaround changes our options
The improved WRU finances are what make this conversation possible. Two years ago, there was no capacity to invest differently, only to cut and contain. Now, the WRU can look at rebalancing investment and funding across the system.
This means:
• Decisions can be made on long-term sustainability, not just short-term survival.
• Resources can be targeted not just at professional clubs but also at pathways, academies, and community rugby.
• Growth areas like the women’s game can receive increased and consistent investment.
• The WRU can maximise Principality Stadium as a national asset, hosting world-class events while reinvesting revenues into rugby.
The turnaround does not remove the tough choices – but it ensures those choices can be made from a position of financial stability.
WRU Chief Commercial Officer, Leighton Davies, says “We’ve turned a financial corner, and that enables us to have a conversation through this consultation that gives us the chance to work together on a new model that is sustainable, competitive and sets us up for long-term success. I hope everyone with an interest in Welsh rugby, will take part and share their views”
What happens next?
The WRU consultation into elite rugby in Wales runs until the end of September, with findings presented to the WRU Board in October. The outcome will shape the professional structure of Welsh rugby and determine how new financial stability is used to support the whole game. Outside of the consultation, the WRU is due to announce its full financial picture as part of the WRU Annual Report, which will be released in November.
The report, which is currently being audited, will look at how the WRU delivered on its plan for the year ending June 2025 with record turnover of £117M expected and the busiest events calendar in Principality Stadium history also record. That began with the first two nights of the Oasis’ reunion tour on July 4th and was quickly followed by the Stereophonics’ homecoming a week later – underlining the ambition to maximise the stadium asset.
The WRU is also further increasing funding to the community game, and investing further in the development of the women’s game as part of its 5-year plan.
How can you get involved…
Have your say on the future of Welsh rugby
• The consultation on the future structure of the professional game runs from the 1st to the 30th of September. This is your chance to shape the direction of rugby in Wales.
• On the 20 of August, we released the full proposal, you can read that and watch an interview with Abi Tierney and Dave Reddin on the One Wales strategy website.
• On the 1st of September, our public survey went live, giving every fan the opportunity to share their views directly with the WRU. This survey closes on 26th September
• Engagement sessions with key stakeholders will also take place during the consultation period.
• Before completing the survey, we encourage you to read the consultation document, which sets out the challenges and options for the future of Welsh rugby.
Take part today – your voice matters in shaping the future of our game