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'Have the WRU issued an explanation?' - Former Wales lock Andrew Coombs slams union over £20m loan to regions

The CEO of the WRU has decided not to step down.

Former Wales second row Andrew Coombs has questioned the nature of a £20 million loan taken out in 2020 by the Welsh Rugby Union (WRU) to underwrite the survival of professional rugby in Wales.

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The £20m loan was taken out by the WRU on behalf of the regions by way of the Coronavirus Large Business Interruption Loan Scheme (CLBILS), with £5.5m going to the Scarlets, £5m to Ospreys and Cardiff Blues, and £4.5m to the Dragons.

The loan was in part to cover the shortfall in the normal payments that the regions enjoy for the provision and ongoing production of players to the union. In a normal year the payment is around £25m, and is significantly more than the revenue generated by television broadcast right, ticket sales and general commercial revenue.

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Big Dev and Big Jim, a chat among locks:

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Big Dev and Big Jim, a chat among locks:

Coombs – who won 10 caps for Wales between 2013 and 2014 – says that the WRU are now rebranding their annual payment to the Welsh regions for services rendered as a loan that the sides must now pay.

Coombs wrote: “1. The WRU are a customer to the regions. 2. In normal times they pay the regions £26m for their services. 3. The effect of Covid reduced their payment from £26m to £3m. 4. WRU borrow £20m to distribute to regions but expect them to pay this back with interest. 5. Why?! How?!”

“The regions have not changed or reduced the service they provide to the WRU! It’s not the fault of the regions that the WRU have to borrow to pay their customer! I’m struggling to understand how this debt is being passed on. The regions provided a Championship winning squad!” continued Coombs.

“It’s the equivalent of walking into a Mercedes garage, buying a new car with finance and telling Mercedes they have to make the repayments for me.”

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The former Dragons forward has now demanded an explanation from the union on the matter: “Have the WRU issued an explanation and their reasons for passing on this debt to the regions? If so where can I find them please?”

Last month the Welsh Rugby Union chief executive Steve Phillips said he is in the process of renegotiating the loan.

“In consultation with Welsh Government, we acted quickly and found a solution –- with a £20m CLBILS loan from NatWest providing the Cardiff Blues, Dragons, Ospreys and Scarlets security in the immediate term,” said Phillips in February. “This was at a time when government had other priorities, a direct focus on containment and saving lives around the country. Of course, subsequent to that, the £13.5m grant for the professional game has been both welcome and timely.”

“A final piece in the jigsaw for our professional game will now be to re-address the terms contained within the CLBILS loan. More favourable terms will allow our Regions the opportunity to not only consolidate but remain competitive when the current pandemic leaves us and create the necessary resources to ensure – our stated aim – that Welsh rugby at all levels, survives intact, is competitive and sustainable.”

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The row comes as the performance of the Welsh regions is once again in the spotlight after a dire weekend in Europe in which all four Welsh sides lost. The losses come just over a week after Wales were officially crowned Guinness Six Nations champions, once again drawing attention to the gulf in performance between players on national duty compared to the less glamourous regional circuit.

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J
JW 4 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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