THE euphoria felt in Wales after last Saturday's victory in Murrayfield has been tempered by the increasingly parlous financial positions of several leading clubs. Five have accepted loans, guaranteed this week by the Welsh Rugby Union (WRU), totalling more than £700,000 to prevent them falling into the hands of the receiver.
Llanelli and the first division leaders Swan sea have taken out loans of £200,000 each, Bridgend 170,000, while Newbridge and Treorchy, who are both battling to avoid relegation, have been advanced £70,000 each.
In addition, two second division clubs, Abertillery and Aberavon, have been given interest free loans by the WRU of £25,000 each.
The help followed an investigation into the finances of clubs in the top two divisions by the accountants Price Waterhouse. They reported that virtually all the clubs had poor financial outlooks and that the wage bills of some were 128 per cent of their income.
Llanelli are in the most desperate position, having negotiated generous contracts with players in the expectation of a £1.5 million investment through a local businessman which never materialised.
A condition of the loans provided by the WR banker Barclays, is that the clubs reduce their wage bill.
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