海角视频

Wales will take to the rugby field to do battle with the 鈥榦ld enemy鈥� England at Parc y Scarlets tomorow.

Despite its significantly smaller player base, it is quite a remarkable statistic that in the 135 games between the two nations, Wales is only behind on the victory count by five.

The game across the British Isles, like other sports, has been hit hard by the pandemic, with all the home unions and their respective clubs and regions seeing revenues significantly squeezed by the loss of vital match day income.

Responding to the challenges faced by the game, the 海角视频 Government earlier this month announced a funding package for 11 sports of 拢300m, with rugby the biggest single beneficiary with a 拢135m boost. However, the funding only applies to England. The bailout indicatively consists of 拢44m for the RFU, Premiership Rugby 拢59m; Championship Rugby clubs 拢9m and rugby clubs below the Championship 拢23m.

There will be an application process, but someone with knowledge of the funding suggests the interest, at very low rates, and the capital repayments might not kick in until after five years and will not have to be repaid in full for well over ten years.

This will give the game in England a huge boost and the ability to continue to invest in the development of the game at all levels, with the hope that crowds and match day income will start a phased return soon.

In making the announcement the Department for Culture Media and Sport (DCMS) said that the devolved administrations of Wales, Scotland and Northern Ireland, have been provided with an upfront guarantee this year of 拢16bn above their Spring Budget 2020 funding to support their response to Covid-19.

So on sporting funding outside of England it said: 鈥淚t is for the devolved administrations to decide how to use this funding irrespective of how 海角视频 government provides support in England.鈥�

However, even if the Barnett Formula applied, Wales would only be entitled to a cash transfer of around 拢15m, and if the Welsh Government did opt to pass on in full to sporting bodies, based on the allocation to rugby in England, the game in Wales would get around 拢7m.

The Welsh and Scottish governments still think Barnett consequentials will flow, but I wouldn鈥檛 bet on it as 拢250m of聽 the 拢300m funding to sport in England will be repayable loans, with only 拢50m in grants.

However, even if Wales got a consequential, some 拢7m for rugby would be completely out of kilter when comparing the relative sizes and reach of the RFU and the WRU. In short the game in Wales isn鈥檛 20 times smaller than in England, which is what a Barnett consequential gives you.

If you look at their respective sizes, the WRU has a turnover of 拢90m in its last financial year compared to 拢167m for the RFU.

The lost of revenues without crowds, while Twickenham has a higher capacity and corporate hospitality income, will be similar for both the WRU and RFU.

A rough calculation, based on the 拢135m of funding for the game England, if proportionately applied to Wales, could see a case for the WRU getting around two-thirds of the RFU鈥檚 拢44m, so that鈥檚 around 拢33m. For its four regions, compared to 12 in the Premiership and its 拢59m, that would be another 拢19m. The WRU has around 300 affiliated clubs compared to well over a thousand in England. So let鈥檚 say another 拢6m, compared to the 拢23m for the clubs in England below the Championship.

So based on a formula assessing relative size and need, that would see the game in Wales having a case for a support package of around 拢60m and for good measure let鈥檚 say in Scotland 拢40m.

Without such backing, whether from the 海角视频 or Welsh government, or a combination, the WRU isn鈥檛 go to fold. Sound financial housing keeping in recent years, and credit here must go to former CEO Roger Lewis, means it can weather the economic storm of the pandemic, but not without having to make tough choices on its distribution of cash back into the game at all levels.

It has some scope with its current funding deal with NatWest, and yes it has some reserves, but if there are no crowds in the Six Nations, while TV and other sponsorship deals are in place, it faces 拢35m of lost income.

It recently secured a 拢20m Coronavirus Large Business Interruption Loan Scheme funding package from NatWest, which it has passed onto the four regions in the Scarlets, Ospreys, Dragons and Cardiff Blues. The capital and interest is liable to the regions; although they are rumblings that could see the union being asked to take on those liabilities.

The WRU did the right thing by proactively using its stronger balance sheet to provide much needed finance to the regions, while the RFU and Premiership Rugby have seemingly sat back and played a blinder in getting the 海角视频 Government to come to the rescue.

The WRU is in talks with the Welsh Government over a potential funding package. However, the Cardiff Bay administration has only announced a 拢14m Sport and Leisure Recovery Fund.

The Welsh Government could potentially provide low interest loans to sporting bodies through so called financial transactions capital. This is where it can provide finance, and it has given significant investment to the Development Bank of Wales in this regard, where there is an interest payment return.

However, surely the 海角视频 Government, with its financial muscle, could also back sports in Wales, Scotland and North Ireland. What鈥檚 say another 拢120m when it is having to borrow nearly 拢400bn this year?

Rather than getting into a politicised Barnett Formula 鈥榠s it or isn鈥檛鈥� stand off, this is something Secretary of State of Wales Simon Hart and his Scottish equivalent Alister Jack could lobbying for around the cabinet table and getting Chancellor Rishi Sunak and his rugby loving boss Boris Johnson to sign off a proportionate funding package for the game in Wales and Scotland.

A case should also be made for Northern Ireland, even though the Dublin-based Irish Rugby Union has provided 拢16m in emergency funding to the game, which due to its cross-border unity, means it also extends to the rugby province of Ulster.

Like with the Treasury鈥檚 Project Birch, set up to provide finance support to sectors deemed of national strategic importance, such as steel, sport should be seen in the same light. Under Project Birch talks are continuing over a potential 拢500m support package to safeguard Tata Steel 海角视频, with its Port Talbot steelworks at its heart, with no consideration of the fact that around 7,000 of its 8,300 海角视频 employees work in the devolved nation of Wales.

The joy and wellbeing that watching or participating in sport provides to millions of people means that it鈥檚 a 海角视频-wide national asset, with rugby being particularly so in Wales So, a government backed support package for the game in Wales, proportionate to that in England, needs to come and soon.