Wru Requests Covid Loan Break

The Welsh Rugby Union (WRU) has asked Welsh ministers for three years of ‘breathing space’ on interest payments from an £18m Covid recovery loan.

The WRU Chair, Richard Collier-Keywood, has claimed that changes it is making to the organisation following a damming report into its culture will suffer due to the running loan repayment costs.

In November, an independent report found aspects of the Welsh Rugby Union (WRU) culture were sexist, misogynistic, racist and homophobic and not properly challenged.

Now, the organisation is looking to cut costs that will ensure it corrects the cultural issues.

On Wednesday 23^rd January, Collier-Keywood and new WRU Chief Executive Abi Tierney appeared before a Senedd committee and made the requests.

The Welsh government provided an £18m on-commercial terms loan to the union in 2022, which it passed on to the four professional sides.

Speaking to Senedd’s Culture and Sport Committee, Collier-Keywood said, “We have asked the Welsh government to reconsider its position in relation to those loans.

“The rationale for that is that we think we need a little bit of breathing space to get this new strategy in place, to get new income streams and to get the benefit of some of the commercial expertise which we’ve now got round the board table to deliver a better financial outcome for the WRU.

“But it’s really hard to do that instantly.

“The only way you can do that it by cutting costs in an organisation, and I think it would be a great shame to cut into some of the good things that are currently being done by the WRU.

“So we have asked for some breathing space in relation to the Welsh government loans and they have said they will go away and think about that.”

Collier-Wood also stated that loan repayments were having a “very severe” effect on the four Ospreys, Cardiff, Scarlets and Dragons, the four professional Welsh sides.

It is thought the clubs are spending £2m a year on repayments and interest.

Collier-Keywood also cited more favourable terms in UK government loans for clubs in England as he looked to build his case.

It is unclear when a decision on the loan repayments will be made. A Welsh government spokesperson, said, “An initial discussion has been held and we will consider the information presented.”