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'Have the WRU issued an explanation?' - Former Wales lock Andrew Coombs slams union over £20m loan to regions
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.
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?!”
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?! ?? https://t.co/a34KRnytjs— Andrew Coombs (@Coombs_A) April 4, 2021
“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.
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!
— Andrew Coombs (@Coombs_A) April 4, 2021
“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.”
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 ?????
— Andrew Coombs (@Coombs_A) April 4, 2021
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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?”
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? https://t.co/OElVj0avTJ
— Andrew Coombs (@Coombs_A) April 5, 2021
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.
Comments on RugbyPass
Thanks Nick, and on the money. We tend to be apathetic until something REALLY BAD happens, then we aren't! At least this applies to the Reb players and coach, if not the spectators. They seem to be getting very quick ball at times. Have they altered something, or is it just all of the skills coming together at the right time? It seems almost the opposite of the Reds, who started the season with quick ball, but haven't been showing that in the last 3 losing games. Is it attitude (McDermott hasn't looked “right” to me for 3 weeks), or something else?
9 Go to commentsGood summary. As said, Sevu Reece has been electrifying for the Crusaders. Great try and he has been everywhere. Amazing he is now equal with Caleb Ralph , club record of 52 tries for the Crusaders. That record beckons. Good to see Dallas McLeod getting regular starts at last. A big few weeks are ahead.
3 Go to commentsGood article/interview.As was said Christian Lio-Willie was barnstorming when he came on for the Crusaders. What happened at the end, self-explanatory.Captain fantastic Scott Barrett is due back soon as well, once they are back from Aussie. Great to see Ethan Blackadder back last week.
1 Go to commentsYou must have been watching one team, Andrew - and even then you missed the brightest star in the Chiefs pack - Naitoa Ah Kuoi, 2 turnovers, genuine line-out presence and grunt around the field, and the soft hands of a back.
3 Go to commentsHaha what a crock of sh!t these headlines are. Moorby’s best year was that first. Still doesn’t seem to have the same game about him as when he was fresh but has bounced back well this season to be playing consistent tight accurate footy
1 Go to commentsIt’s even dumber than Bernard Foley not kicking the penalty to touch in the Melbourne Bledisloe in 2022.
2 Go to commentsYes, they are traveling well but it’s early days. The Chiefs were in front with 20 to go while they snatched a last minute win v the Reds. Keep calm.
1 Go to commentsThe failure of the Irish system / rugby playing style to produce their own backs has them looking elsewhere for innovation and flair - not that Jordie has much flair. He’s a converted fullback. The Canes have plenty of other younger options.
9 Go to comments1.Watch Wallace Sititi be the wild card AB. A genuine full time no 8 2. Luke J like Sotutu has not delivered. 3. Chiefs have all the right cattle but badly miss the leadership of Webber. LJ is about as unconvincing as Sam Cane when under the pump. They had the winning of that game in the second half then fell apart.
3 Go to commentsYes the Rebels are showing signs of life because they are literally playing for their live -lihoods and thanks to their Australian attack coach. However they are still playing an essentially dull boring south african style for the rest of the time. And Geoff Parling must be the most useless lineout coach ever. Worse than Steve Hansen even. Interestingly we are starting to see more cheap shots and attempts to get away with cheating by Australian players, now they are being influenced by Joe Schmidt. It was exactly the same when Rennie started out as Wallaby coach and thru his tenure. Trying to teach Australians to play like kiwis doesn’t work, as the last 20 years has conclusively demonstrated. Especially when we are not as good at it as kiwis. Which of course is the whole idea …..
9 Go to commentsGreat signing, not sure where he’ll fit in though. As for him ‘playing alongside RG Snyman, that’s highly debatable given the likelyhood that the latter will spend most of the season on sick leave.
9 Go to commentsWowee!
9 Go to commentsEvery team that has played a game in Africa this Champions Cup season is already out of the competition - including the SA teams. Could be a concidence.
30 Go to commentsthat should offer some experiences for Jordie.
9 Go to commentsJust remember: He is not a winger. Took Ian Foster 2 years to figure that out.
9 Go to commentsExcellent article, Nick. We (your RP colleague Brett McKay and my 8/9 Combo cohost), are going to have LSL on our podcast later this month. He has shown consistent excellence as a leader and lock. I’ll chat with you offline about a line of questioning if you have time. H
9 Go to commentsSo no Irish fan or journalist suggested JGP was as good as DuPont. Then even the guy who supposedly did is from Wales and said JGP would be the best around if it was t for DuPont. Right, so what is this story about again
17 Go to commentsGreat news for the URC. Leinster will always attract top talent. Another huge name added to their stable
9 Go to commentsWhen you look at Australian Rugby you can see the talent coming through. There’s young players everywhere. They have the makings of a strong Wallaby team for years to come if they trust their young players. There might be some short term pain but after 30 or 40 caps together a Wallaby group comprised of the current youngsters will really be top class. It seems like the threat of going under has focused the Rebels both on and off the field. They are having a go like a team with nothing to lose and winning back the fans whilst silencing their detractors. Its funny how an existential threat can spur a team on to new highs. Taking rugby back to the communities will help to build support and create a true team for the community and one rooted into it. It may just work and save the Rebels and if they can get the financing then maybe let them have a go at reinvention. I do feel though that Australian Rugby has one too many franchises. If the Rebels die all these solid young players get infused into other franchises who will have more money, depth and resources. It would make the Australian Rugby franchises so much stronger and they may come to achieve parity with the best franchises from NZ. Super Rugby is throwing up some really entertaining games. Not too much good defence but certainly high pace, try scoring magic on display. Melbourne are no exception to this.
9 Go to commentsMost articles (none Irish) said JGP might be second best globally (after Dupont). Anyway, he is playing great. Different player but maybe he is equal to Dupont in how he is reading games now. He is also running a lot of Dupont support lines and scoring a lot of tries. Dupont is best scrum half but JGP in next pack.
17 Go to comments