WRU £18m Loss: Cardiff Plan and £9.6m URC Deal 2026

Key Points

• The Welsh Rugby Union has posted a loss of £18 million while turnover has increased by £10m to £116.2m.
• WRU chief operating officer Gavin Marshall claims that the governing body is unable to continue to fund four professional teams at the current level.
• WRU provides £26 million to the four teams under the PRA25 deal.
• Cardiff Rugby team which has been controlled by WRU after going into administration in April 2024 reported a loss of £1.2 million.
• WRU had intended to sell Cardiff but pulled out of the sale because it did not find the appropriate buyer.
• A Hollywood-supported consortium still has interest in acquiring Cardiff, it was reported.
• The WRU made £9.6 million after the sale of some of its United Rugby Championship shareholdings in a commercially sensitive transaction.
• According to Marshall, some of the amount will be set aside as compensation to the professional clubs for lower future competition income.
• Gavin Marshall says the WRU should cut costs on professional rugby and increase revenue instead of just cutting costs.

Cardiff (Wales Times) October 22, 2026 – The Welsh Rugby Union has defended its financial position, its plans for uk/sports/cardiff-rugby/">Cardiff Rugby and a £9.6m share sale linked to the United Rugby Championship, after reporting an £18m loss amid warnings that it cannot continue funding four professional teams at current levels.

In an interview with WalesOnline rugby correspondent Steffan Thomas, WRU chief operating officer Gavin Marshall said the governing body was “not sustainable” in its present form and needed to reduce spending on professional rugby while pursuing commercial growth. His comments come at a decisive moment for Welsh rugby, with the WRU considering a reduction from four professional teams to three.

Why has the WRU reported an £18m loss?

The WRU reported an £18m loss despite increasing turnover by £10m to £116.2m. According to the figures discussed by WalesOnline, EBITDA — earnings before interest, tax, depreciation, amortisation and rugby allocations — fell from £32.8m to £19.7m.

Excluding the impact of owning Cardiff Rugby, which entered administration in April 2024, EBITDA fell from £35.2m to £28.5m. The WRU attributes the decline to higher energy and staffing costs, falling ticket sales and reduced spending by supporters.

As reported by Steffan Thomas of WalesOnline, Marshall said: “We achieved an EBITDA of £28 million this year. Historically, post-COVID, we’ve averaged around £30 million.”

He said the union must also fund capital expenditure of roughly £3m to £4m a year, service loan interest and support community clubs, which received £4m this year. Marshall said that, if the financial position improved, about £20m could be available for investment in professional rugby.

The WRU currently funds the four professional clubs at a total of £26m, including the PRA25 arrangement. Marshall told WalesOnline: “Financially, we simply cannot maintain this funding level. The significant loss we’ve incurred reflects that we are living beyond our means. Therefore, we must find ways to increase our revenue.”

Can Welsh rugby afford four professional teams?

Marshall stopped short of saying how many professional teams Wales should have, saying that decision rests with the WRU board and performance team. However, he was clear that the current funding model is not financially viable.

Asked whether the WRU should return to a two-club model rather than move to three, Marshall said: “It’s not my place to decide; that falls to the board and performance team regarding the number of teams.”

He added:

“What I can affirm is that we cannot sustain the current funding level. The number of clubs is less of an issue than how we finance them and ensure their competitiveness within that funding framework.”

Marshall said the WRU needed to reduce spending on professional rugby to address the substantial loss. “At this point, we are not sustainable, and adjustments are necessary,” he said.

“We need to reduce our spending on professional rugby to address the substantial loss, and while I remain optimistic about future growth, we have a considerable journey ahead to recover £18 million.”

What is the plan for Cardiff Rugby?

Cardiff Rugby has been owned by the WRU since the club entered administration in April 2024. The club recorded losses of £1.2m, a figure WalesOnline describes as comparatively manageable against other professional rugby teams.

The WRU initially intended to transfer ownership of Cardiff to Y11 Sports & Media, the owners of the Ospreys, but that sale did not proceed. A consortium involving Hollywood producers also expressed interest, but the WRU later withdrew Cardiff from the market.

Marshall said the WRU’s long-term aim remained to return Cardiff to private ownership.

“We attempted to find a buyer for Cardiff but felt we hadn’t identified the right one,”

he said.

“After evaluating the situation, we decided against the sale. Our strategy is ultimately to not own Cardiff. Given the current restructuring and uncertainty, it’s a challenging time to sell a professional club.”

He said the WRU planned to move through the restructuring process before seeking a suitable buyer once there was greater clarity over the future of Welsh rugby. The aim, he said, was to maximise the club’s value and reinvest the proceeds into Welsh rugby.

According to WalesOnline, the Hollywood consortium’s interest includes plans beyond the playing side, including a scripted drama set in Cardiff and improvements to the club’s marketing and commercial operations. The group has previously used Rothschild bankers in discussions about restarting a sale process.

Bath co-owner Bruce Craig has also said that, for any potential Anglo-Welsh league to work, Cardiff could not remain under WRU ownership.

Why did the WRU receive £9.6m from the URC?

The WRU received £9.6m after selling part of its shareholding in the United Rugby Championship. The transaction was first reported by ITV, which said the WRU secured nearly £10m from a deal concerning the URC last month.

The URC’s shareholders include the five national rugby unions and private equity firm CVC Capital Partners. When CVC first invested in the URC in 2020, the WRU benefited from the resulting proceeds.

A report from an Irish company indicated that Pro Rugby Championship DAC, which operates the league, issued 378 shares to Bidco, a CVC-controlled entity, in September. This increased Pentagon’s stake alongside Celtic Rugby DAC, which represents the unions.

In March, the Financial Times reported that private equity firm KKR was expected to invest in Sport Group GSG, the CVC entity managing its sports investments. A subsequent KKR investor presentation included GSG among the companies it financed that year.

Marshall confirmed the WRU had sold some of its URC shares alongside other shareholders. “There was a commercially sensitive transaction that the URC executed,” he said. “We, CVC, and all governing bodies involved in the URC received funds from that. We sold some shares and received £9.6 million, which is beneficial for our investment in Welsh rugby.”

Will the clubs receive any of the £9.6m?

Some stakeholders within Wales’s professional clubs said they were unaware of the transaction and believed the money should go directly to the teams. Marshall said a fixed portion of the proceeds would be distributed among the four professional clubs.

“Our shareholding has diminished, and there are new shares in the URC, meaning clubs will receive less competition income,” he explained. “I assured the clubs that we would compensate them, so they wouldn’t be at a disadvantage due to this deal.”

The WRU’s position is that the payment is intended to offset the reduction in future competition income resulting from its reduced shareholding and the introduction of new URC shares.

Could WRU job cuts solve the financial problem?

Critics have argued that the WRU is too large and could make major savings by reducing its workforce. Marshall rejected the suggestion that staffing cuts alone could resolve the financial shortfall.

“When facing results like these, it’s crucial to evaluate all dimensions,” he said.

“From a commercial standpoint, we need to strike the right balance. It’s not feasible to cut our way to success or to find £18 million in cost reductions. We must focus on growing our revenue and ensuring we have the necessary resources to do so.”

He said commercial expertise would be important in increasing stadium revenue and growing income.

“It’s a balancing act between being responsible with our costs while enabling growth,”

Marshall said.

Does the WRU accept responsibility for the loss?

Marshall acknowledged that the WRU must take responsibility for its financial performance, while also pointing to wider pressures affecting rugby.

“Accountability is essential,” he said.

“We must scrutinise our financial performance and identify areas for improvement.”

He said the executive team was accountable for the results and committed to improving performance. “It’s been a tough year, and we are striving to do better. We don’t make excuses; we need to control what we can.”

Marshall said the cost-of-living crisis had affected matchday revenue and attendance. Wales’s current world ranking of 11th has also had financial consequences for ticket sales, according to the reporting.

“Wales’ performance has had financial repercussions on the WRU’s ticket sales,” Marshall said. “We’ve won three out of our last five matches. The professional team has shown significant improvement. A notable victory against Italy and subsequent wins have garnered attention.”

He said the WRU also had a responsibility to make ticket prices and the matchday experience attractive, regardless of results. “Our responsibility is to ensure ticket pricing and matchday experiences are appealing, making attendance desirable regardless of the results,” he said.

The WRU expects strong ticket sales for forthcoming Six Nations matches against England and Ireland, and anticipates record crowds for the women’s Six Nations.

Background to the WRU’s financial development

The WRU has owned Cardiff Rugby since the capital club entered administration in April 2024. The governing body had sought a private buyer, with interest from Y11 Sports & Media and a Hollywood-backed consortium, but later withdrew the club from sale.

The financial pressure comes as the WRU considers reducing the number of professional men’s teams in Wales from four to three. The organisation says it cannot maintain the current £26m funding level for the professional game while also supporting community rugby, capital projects and debt repayments.

The £9.6m URC share sale has added another layer of debate. While the WRU says the money will help offset reduced competition income for the clubs, some professional-game stakeholders believe the proceeds should have been directed straight to the teams.

Prediction: What this means for Welsh rugby supporters

For Welsh rugby supporters, the immediate effect is likely to be continued uncertainty over the structure and funding of the professional game. If the WRU proceeds with reducing the number of professional teams, supporters of the affected region could face the loss of a senior side, while fans across Wales may see changes to fixtures, player movement and regional identity.

Cardiff supporters in particular will watch closely for progress towards private ownership. Marshall’s comments indicate that the WRU does not view long-term ownership of Cardiff as part of its strategy, but a sale is unlikely until the wider restructuring of Welsh rugby becomes clearer.

Supporters may also see the financial pressure reflected in ticket prices, matchday offers and investment priorities. Marshall has said the WRU wants to make attending matches appealing even when results are mixed, suggesting a renewed focus on pricing, stadium experience and commercial growth.

For players, coaches and staff at the four professional clubs, the central issue remains funding. The WRU’s position that the current £26m model is unaffordable increases the likelihood of significant structural decisions in the months ahead, even though no final outcome on team numbers has been confirmed in the reporting.