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The Welsh Rugby Union has posted its highest ever revenues, as well as reinvesting a record amount back into the game at all levels.

For the financial year to the end of the June, 2017, the union generated revenues of £74.9m, compared to £73.3m a year earlier.

And the amount reinvested back into game was up 11% to £36.6m. Along with a £21m allocation to the four professional regions - which included £1m into regional academies - investment in the community game was up 10% to £8.7m.

Chief executive Martyn Phillips, whose total remuneration for the year was £333,000, said: “We are delighted once again to have been able to increase over investment into rugby both at a professional and community level.

“Two years into the role I remain more convinced than ever that being more aligned throughout the game is our single biggest opportunity for success.

“We will continue to work hard with our regions to increase attendances and engage with all clubs and supporters in their catchment communities. This is a fundamental part of creating a sustainable and financially viable environment for rugby in Wales.”

The union has agreed an extension of the repayment of loans with a combined value of £2.7m to the Blues, Ospreys and Scarlets, provided as part of the Rugby Services Agreement, by a further five years to 2025.

The extension will ease financial pressures on the regions.

Having drawn down the funding over the last three years the regions - the Dragons are no longer covered as they are now owned by the WRU - they had originally agreed to repay the capital over the next three years.

Finance director Steve Phillips said: “Increased turnover, due to more international matches held at the Principality Stadium, has been reinvested into the game together with savings in other areas in line with the group’s full reinvestment strategy. We are particularly pleased with our increased investment into the community game.”

While there were only two home games in the Six Nations, there were a total of six games last season compared to five in 2015-16 when there were no autumn internationals due to the Rugby World Cup.

What the other home unions regenerate

Unlike many private companies, where profits are generated to reward shareholders through dividends, the home unions are effectively the executive functions of their respective member clubs.

So, for them - after taking into account running costs and prudent reserves - the focus is on reinvestment into all levels of the game from the professional to the community.

Scotland

In its last financial year to the end of March, 2017, the Scottish Rugby Union generated revenues of £51.4m, up from £47.3m a year earlier.

However, while less than the WRU, it only has to finance two professional regions in Glasgow and Edinburgh.

England

In its latest published accounts for the year to the end of June, 2016, the Rugby Football Union reported record revenues of £407m.

However, this was bolstered by receiving more than £200m, from the hosting of the Rugby World Cup in 2015.

So a more meaningful comparable figure - until the year to the end of June, 2017, figures are published - is around £200m.

The RFU also has to distribute more back into the game than the WRU, due to its larger club and player base.

However, the professional clubs in England, also benefit from a lucrative deal with BT Sport to broadcast Premiership games - which negotiated on its behalf by Premier Rugby (PRL), in which the clubs have equity stakes.

Ireland

Its latest published accounts for the year to end of April, 2016, shows that the Irish Rugby Football Union, generated a total income of £76m euros.

Based on the current exchange rate that equates to around £67m.

Where the WRU's revenues came from

Almost half in £35m (£27.9m in the previous year) came from match income, which as well as ticket sales also includes revenues from the various TV deals for the Six Nations, European competitions, the autumn international series and the Pro14 league (last season the Pro12).

Commercial activity was up from £12.3m to £12.8m, with hospitality and catering income down from £11.4m to £10.9m.

Other event income was down from £5.4m to £2.1m. This was down to the fact that in the previous year the WRU received a boost for hosting eight games in the Rugby World Cup.

The £2.1m figure last year included the fee it received from UEFA for hosting the Champions League Final between Real Madrid and Juventus.

What the WRU paid Welsh squad players

Not including the WRU’s contribution to funding the cost of national dual contracted players, total squad costs fell from £4.4m to £2.5m representing a rounded figure fall of £1.8m.

This was due to less games than the previous year with the Rugby World Cup, but also lower bonus payments as a result of Wales finishing fifth in last year’s RBS Six Nations.

But Wales’ fifth position also impacted on competition income, which was £9.2m as opposed to £9.7m a year earlier when Wales finished third.

Where the WRU can generate more revenues

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Well many of the big ticket items, like the naming rights for the Principality Stadium (with Principality Building Society), the rugby kit and equipment deal with UnderArmour and the Wales rugby jersey shirt sponsorship deal with Isuzu, all have years to run.

The WRU is looking at potential commercial development opportunities around Rodney Parade - after its acquisition of the Dragons and the freehold interest in Rodney Parade that extends to nine acres over the summer - as well as land it owns in front of the Principality Stadium, with the so called Westgate Plaza scheme.

However, there are no firm plans at this stage.

It is looking to increase non rugby event income at the stadium. In October it will stage the world heavyweight boxing clash between Antony Joshua and Kubrat Pulev, with four Ed Sheeran concerts next year summer.

TV deals

The deal with the other home unions for the the Six Nations with ITV and the BBC is only two years into a seven year contract. There is also a long-term deal in place for European rugby.

But this season is the last year in a deal with Sky and BBC for showing games in the Pro14.

While not disclosed the current deal is worth around £10m to the WRU and the Scottish and Irish unions. Again, while not stated, the company tasked with commercial deals for the Pro14, Celtic Rugby, is hoping to double that amount in a new deal.

And while not ruled out there are currently no plans to approach the RFC and PRL with a view to creating a British Isles league - assuming of course the English would have any interest.

PRL's current exclusive deal with BT for broadcasting Aviva Premiership games runs until the end of the 2020-21 season.

Debt position and debentures

The WRU has an up to £20m revolving credit facility with Barclays, which fluctuates through the year depending on cash flows. At year end it had a net bank debt of £9.4m.

But it also has future liabilities to repay debenture holders, at a total of £37m. The largest current repayment level of £17.6m is due in 2050. However, the union has continued to get agreement with debenture holders to extend the repayment time frames.

Debentures were issued to help fund the construction of Principality Stadium. In effect debenture holders paid a fee for the right to receive and pay for international tickets.

During the year a further 188 debenture holders elected to extend redemption of their debentures (with a value of £1.7m) from 2024 to 2050.

During the year the WRU acquired the Dragons and freehold interest in Rodney Parade. Around £3.7m of the total £5.5m was accounted at the end of the last financial year.

The remainder, including stamp duty, professional advisory fees and £750,000 in a new Desso pitch, has fallen into the current year.