October Chairman’s Comment
I’m sure member clubs will join me in welcoming our new technical partner Macron to Welsh Rugby on the day when the new international kit range has been revealed in all of its glory. Our new Wales jersey, from Macron is a striking representation of Welsh Rugby tradition and we are delighted to have been able to begin our new seven-year partnership with Macron in such a spectacular way.
The Italian sportswear manufacturer and technical supplier have a tried and tested rugby pedigree. The first rugby kit they produced worldwide was for Neath RFC in 2008 and they not only supply over 50 clubs from the community game, including the likes of Merthyr, Bedwas and Llandaff, already but also two of our regional sides in Cardiff Blues and the Scarlets. The deal has also seen Macron take over the WRU’s merchandising operation – just as it has done for the Blues and Scarlets - running its vibrant online shop and flagship store at Cardiff’s Principality Stadium.
But it is the unique community element to this new partnership that excites us all the most. Over the following six years, starting in 2021/22 season £1m worth of Macron kit will be made available, each year, to the community game at no charge. More details will follow on the mechanisms we will employ to get this kit to the areas most in need throughout Welsh Rugby, but this direct investment in our community game is most welcome at this time given the ongoing pandemic situation.
The WRU Group Annual Report was published at the start of this week and it describes how managing the impact of Covid-19 down to a £5.3m deficit would not have been possible without the efforts of the Board, Council Members, employees, our commercial partners and the wider rugby family – our member clubs. We had expected to show a break even result for the current year and were on track to achieve this up until the business and economic disruption that was caused by the pandemic.Its impact on the Group has meant an unanticipated loss, but we expect to be able to retain profits over the medium term to be able to offset this loss and return net assets to previous levels.
The Group has a healthy business, with a strong balance sheet and adequate liquidity. Immediate measures were taken to reduce costs and protect our financial position with the outbreak of the pandemic.However, it is too early to quantify the full impact of the Covid–19 pandemic on future financial performance and the Group will continue to closely monitor the developing situation.
We are all delighted that international rugby will return this autumn but the prospect of playing without spectators has an obvious and directly negative influence on our ability to generate revenue and, of course, we want to be in a position where the whole game can return without restrictions. We have contingencies plans in place, for example for the prospect of home matches in the 2021 Guinness Six Nations having to be played in front of part capacity crowds, due to social distancing, but no crowds will present severe challenges.
We have sufficiently robust banking facilities but there is no doubt that YE21 is when the full impact of this pandemic could be felt.I believe we can all be proud of what we have achieved so far and, under present circumstances, only making a £5.3m loss in YE20 can be viewed in a positive light, but there is also much hard work ahead, just as there is for all in the sports, leisure and entertainment industries as we continue to navigate through the uncertainties arising from the current pandemic.
Stay safe,
Steve Phillips
WRU CEO