The Welsh Rugby Union Group has issued its accounts for the 2002/2003 financial year to its member clubs and affiliated bodies. The loss reported for this period before extraordinary items is Â£1,336,826. This compares to a profit of Â£214,656 in the 2001/2002 year and is due mainly to a fall in turnover.
While the WRU's net loss for the year was Â£1,336,826, due to the fundamental reorganisation of the professional game in Wales, Â£1,944,996 was provided against impairment of investments in Premier Division Clubs with a further provision against Club indebtedness in the sum of Â£500,000. These figures combined to create an overall deficit for the year of Â£3,781,822.
However, with the inclusion of Millennium Stadium Plc. and Gowerpark Ltd., the WRU Groups consolidated loss totalled Â£2,599,195 compared to a profit of Â£296,053 for 2001/2002 Financial Year.
The fall in turnover is accounted for by the reduced number of Six Nations fixtures, from 4 to 2, with a further direct impact on hospitality revenue. Although there was a reduction in sponsorship income, television rights increased over the period by Â£992,428.
Costs were cut across the board, which are reflected by the reduced National squad costs, along with the dropping of the Wales A team fixtures enabled a total saving in excess of Â£300,000.
David Moffett, Chief Executive of the WRU Group, said: "The figures are obviously not as we would like them, but we have been through an extraordinary 12 months. Many of the decisions we have taken in the past year will help us to improve the financial performance of all strands of the Group.
Measures have been taken to cut costs wherever possible and we have already delivered many major savings at the WRU."