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Cancelled matches could cost WRU £50m, says chief exec Phillips

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Published in Rugby
Wednesday, 06 May 2020 09:22

The Welsh Rugby Union could lose £50m of revenue if it does not host autumn internationals and Six Nations games, chief executive Martyn Phillips says.

Rugby has not been played since March because of the coronavirus crisis.

Wales are scheduled to host seven Test matches from October 2020 to March 2021 - four autumn internationals and a possible three Six Nations games.

"If we did not play any autumn or Six Nations, you probably would be looking at £50m of lost revenue," he said.

Rugby Football Union boss Bill Sweeney said it will have revenue losses of £107m if the 2020 autumn internationals are cancelled because of the coronavirus pandemic.

The WRU's group income in the 2018-19 financial year was £90.5m - with half of that, £44,5m, coming from Principality Stadium match income.

Hospitality and catering at those games and other events staged at the stadium provided an extra £14m.

Wales could host Scotland in a rearranged 2020 Six Nations match in October and face Fiji, Argentina, New Zealand and South Africa in November. Ireland and England are scheduled to visit Cardiff in the 2021 Six Nations matches.

"It is always difficult to predict individual games but when you see the annual report you see the reliance of international matches," said Phillips.

"We are less reliant on international income than the RFU but it is still the lions share of your business.

"Events are probably a bigger part of the mix for us because of the roof and it's something we've built up over a number of years.

"It's possible that will come back next year but the big swing factor here will be the Six Nations. That's such a big part of our income."

Autumn crowds 'unlikely'

World Rugby has released its 'return to play' Covid-19 guidelines this week but has not stated if matches will have to be played behind closed doors until a vaccine is available.

This strategy will be determined by individual national legislation but Phillips admits it is unlikely Wales will be playing in front of a crowd this year.

Each home international traditionally provides a minimum of £4m in ticket sales alone.

"My expectation is it's unlikely we will play in front of a crowd in the autumn," said Phillips.

"If we can get the games on in some form, that would be great, but I'm expecting it to be behind closed doors.

"We are nervous about the autumn and you want to be playing those games if you could, but as every week goes by we make inroads into how we come out the other side of that.

"If you start then going into the Six Nations - and if those games either don't go ahead or don't play in front of a crowd - it becomes extraordinarily difficult to see your way through.

"We have six to eight months to do something about it and that is what we working towards.

"I just then hope in eight to 10 months' time, we will back playing those games in front of some form of a crowd at least."

Phillips admits if there was no international rugby until the summer of 2021, the WRU could seek support from the Welsh government.

"It's the obvious place to go," said Phillips. "If there are no events in the stadium it's more than a ripple effect out into the south Wales economy.

"My first port of call is always self-help. Our job is to deal with what is thrown at us, but like any organisation it can be taken beyond the point where you can deal with it yourself.

"So the ramifications would be far beyond rugby if, for example, the Six Nations doesn't happen."

The Principality Stadium has been turned into a field hospital and Phillips has said even if the venue was available for internationals behind closed doors, the WRU could switch games to other venues if there would be no spectators.

"Realistically you'd probably try to keep it within rugby, the regional venues would be the obvious choice," said Phillips.

"You could potentially look at the football grounds but there'll be a backlog of football to be played.

"We could do it within the stadium, that still has the potential. It boils down to the quality of the pitch and the off-field facilities, playing and broadcasting. The regional grounds cater for that anyway and it's a few months away.

"North Wales is one we've talked about dependent on the number of games.

"If you had supporters there we'd consider it but if it's behind closed doors it's probably not an awful lot of value, you'd favour the south from a convenience point of view."

Wales' summer tour of Japan and New Zealand, scheduled for June and July, has yet to be officially called off but is unlikely to go ahead.

Phillips outlined the expected chain of events which starts with the expected government announcement on Sunday as to how lockdown rules might be relaxed.

"Like most of the country, we're waiting for Sunday and the meat on the bone from the government [on easing lock-down]," said Phillips.

"I am expecting rugby to be at the back end of the return to sport.

"The July tour announcement I would think would be imminent and with the autumn there are three factors.

"Who the opposition is, playing behind closed doors or not and whether the games simply don't go ahead."

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