Get the latest Welsh rugby news sent straight to your inbox Sign up Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Welsh rugby has been told improving marketing strategies is the key to aiding the regional game.

The message came from Connacht chief executive Gerry Kelly amid fresh fears over the financial state of regional rugby in Wales.

The Dragons are the latest trouble-hit region with the independent auditor who examined their accounts questioning the future of professional rugby in Gwent.

He said they revealed “a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern”.

The Dragons made a loss of nearly £272,000 in the year ending May 2011 and are almost £2.4m in debt.

The picture is little better elsewhere as the Blues made a loss of £2.3m during the same period, the Scarlets £1.8m and the Ospreys £1.46m.

Two months ago the Ospreys faced a winding-up petition from Her Majesty’s Revenue and Customs over an outstanding tax debt, although the region said at the time both parties were confident an amicable solution could be reached.

The Scarlets, meanwhile, sought to reassure their supporters over their future despite a total debt of £5.5m and another warning from their auditor.

Accountants Price Waterhouse Cooper were commissioned by the Welsh Rugby Union to draw up a detailed report on the state of the professional game in Wales, but their findings haven’t been released for public consumption.

While the situation is grim in Wales, rugby on the other side of the Irish Sea is booming with European champions Leinster and Munster continuing to attract massive crowds.

Heineken Cup finalists Ulster have announced plans to develop their Ravenhill home into a state-of-the-art stadium and even the average attendance at minnows Connacht went up by more than 50% last season. So how do the Irish do it?

“Two reasons,” said Kelly. “The first one should be working for the Dragons – new facilities.

“We improved ours and it was a contributing factor in our crowds going up.

“But they are still well behind the facilities of the Dragons, which are excellent.

“I know their new stand at Rodney Parade cost them a lot more than they expected but it should bring reward in the long-term.

“The second reason our crowd went up at Connacht was that last season was our first in the Heineken Cup.

“People bought into it the team was improving but it took a lot of marketing work.

“Marketing was a major priority and still more needs to be done.

“Last year we invested a lot in our marketing programmes and intend to again this summer and next season.

“It’s hard work but it’s paying dividends. Munster were the original leaders and Leinster have taken it to another level.

“We are rivals on the pitch but off it the four Irish provinces share a lot of ideas in areas where we can help each other.

“Because of the recession we have capped ticket prices.

“Another important thing is that we have central contracts in Ireland and that can keep salaries to reasonable levels.

“It means we are not competing with each other for players, which I know is a problem in Wales.

“But it does baffle us this side of the Irish Sea why the Welsh regions are struggling. It’s a hard one to figure out.

“But it’s important for the Pro12 that Wales is strong. The Ospreys are the champions but all the Welsh teams are vital elements. We certainly wouldn’t want to lose any of them.”

Dragons chief executive Chris Brown said the auditor’s assessment of his region was a wake-up call but claimed they were moving closer to breaking even.

Wales’ four regions have agreed a £3.5m salary cap next season in an effort to curb further losses.

The WRU said it was in the middle of talks with the regions on a range of issues and it would be inappropriate to comment further.