WRU boss Martyn Phillips has reacted to criticism from ex-Union chief Glanmor Griffiths over the funding of the regions compared to clubs in Wales.
Former chairman Griffiths has said the four pro teams should not be propped up by the governing body to the detriment of the community game.
The man behind the construction of the Principality Stadium insists it was built to help secure a positive financial future for the whole game in Wales, “not merely to plug holes in the four regional sides”.
Now current chief executive Phillips has responded to the blast from Griffiths.
He points to the fact that funding for the community clubs is ring-fenced and guaranteed at £11.7m per year, providing certainty for the grass roots game.
In contrast, funding for the regions depends on how much money is generated by the professional game.
At present, the WRU direct funding to the regions stands at £20m, which is payment for services provided, such as releasing players for international duty and observing overseas quotas.
They pass on a further £11.7m which is generated by the sides themselves through TV and competition income.
The way the overall pot is divided up to each team is decided by the Professional Rugby Board, based on set criteria.
Reacting to Griffiths’ comments, Phillips said: “We are a Union of clubs so you have got to start in that place.
“Previously, we had contracts in place for funding the regions, paying the players when they play for Wales and paying the coaches.
“So you fulfill all those contracts and whatever was left goes to the clubs.
“They were at the end of the queue. So you are exposing the clubs to the vagaries of the commercial markets, even though you are a Union of clubs.
“So we have turned that completely on its head and said the main contract we have is with the clubs.
“That’s what the ring-fence means in effect.
“It’s saying to run the club game properly these days, here is what that costs.
“So we are going to ring-fence that and whatever happens you are going to get that.
“The figure is £11.7m. Obviously there will be inflation increases that are baked into that.
“If we can over-perform commercially, a proportion of that can go to the club game as well.
“So they are guaranteed a good amount with the potential to increase that to more over time.
“I think that’s a really good place to be.”
Phillips continued: “Whatever is left after that goes to the professional game.
“So, in effect, the professional game is taking the risk and the reward.
“If you have a bad year, we are going to have to find a way to work our way through that.
“If we have a good year, they will get a proportion of the reward of that.
“So I think it’s a really smart way to go.
“You have seen other Unions have to start to cut into community club funding and then I think you really are risking the long-term and we don’t want to do that.”
