The Welsh Rugby Union has "put investment before profit as it looks to build up the game at grassroots level and bolster its four regions," which have all struggled in Europe and the Pro12 in recent seasons, according to Paul Rees of the London GUARDIAN. The WRU enjoyed a 13% increase in turnover last year to a record £73.3M, "allowing it to increase investment in the game" to £33.1M ($42M), an 11% rise. Debt, which stood at more than £60M little more than a decade ago, has been reduced to £11M ($14M) "and no longer has conditions attached." WRU Chief Financial Dir Steve Phillips said, "We are pleased with the results, all the more given that it was a World Cup year. We have invested the increase in turnover in our game which is what we are here to do and we have put record amounts into the regional, Premiership and community levels. ... Debt is a business tool and there is no contractual obligation or pressure to reduce it and whether we do will be a management decision" (GUARDIAN, 10/5). WALES ONLINE's Sion Barry reported the total investment in community clubs increased by 16% from £6.8M ($8.7M) to £7.9M ($10M), "principally due to the investment in the school club hub programme," in digital strategy costs associated with a decision to better promote the community game and facility grants. The investment in the Premiership increased by 14% to £1.6M ($2M), "while investment into the four professional regions rose" 12% to £19.3M ($24.5M). The group welcomed 346,000 ('15: 395,000) rugby spectators to Principality Stadium during the year. It was "partly able to reinvest more into the game as a result of a refinance deal with Barclays" in the summer of '15, which released a long-term £10M ($13M) liability in "the unlikely event of the union selling the Principality Stadium or refinancing the debt with another bank." While most of its major TV and sponsorship deals are in place for the long-term, "the current shirt sponsorship deal with Admiral expires next summer." The union is "currently talking to a number of interested parties over a new deal," which potentially could see Admiral renew for the third time. The union is "also exploring utilising hospitality boxes at the Principality Stadium not let out for the long-term, as serviced accommodation space for businesses" (WALES ONLINE, 10/5).
