Valleys Rugby will be owned and controlled by the community it serves.
More detail is set out in the Legal Structure section.
Valleys Rugby CBS will initially issue shares at £100 each. The shares will be “annual shares” and so need to be subscribed for once a year. Each shareholder, upon buying into Valleys Rugby, would be entitled to:-
We will target a subscription by 10,000 fans at £100 per person – and using this model have an ability to raise £1,000,000 per annum from the owners of Valleys Rugby CBS.
It is important to note that anyone can subscribe for shares in Valleys Rugby CBS and support the establishment of a top-flight rugby team for the Valleys. Membership will be open to supporters from across Wales and the World.
This subscription and ownership will provide Valleys Rugby CBS with the equivalent of a rugby benefactor.
As outlined in the Legal Structure section, Valleys Rugby CBS would own at least 60% of Valleys Rugby Limited.
The remaining balance would be owned by a combination of Affiliated Clubs, the WRU, Local Authorities and other interested parties.
A participation and subscription agreement will govern this ownership. The method and make-up of this element is subject to further investigation and discussion with the WRU and affiliated clubs.
It is envisaged that this element of ownership will also attract revenue into Valleys Rugby on an annual basis. However, if there is insufficient interest, the percentage of Valleys Rugby Limited owned by Valleys Rugby CBS would be increased and further shares made available to public ownership.
Early thoughts include a three tiered scale of club membership along the following lines:-
The commercial activities of Valleys Rugby Commercial Limited are also clearly key to the proposal as sponsorship, ticket sales, TV payments etc will make up the remainder of the balance sheet of Valleys Rugby.
Valleys Rugby will seek a minimum of £300,000 sponsorship per annum and believes the business community would be willing to support this as a venture.
Valleys Rugby at present cannot take full commitment from any sponsors as the concept has not been approved by the WRU. Until such approval takes place formal sponsorship and other commitments cannot be advanced.
However, in a show of support, Valleys Rugby has achieved an indication of sponsorship of £250,000 over a 3 year period from Heads of the Valleys Developments. Letters of support have been received from the following businesses:-
The ability to progress this element in detail is difficult unless and until the WRU indicates that it would be willing to support Valleys Rugby being developed as a concept. If this backing can be indicated it is believed that significant sponsorship opportunities can be progressed.
Valleys Rugby would require the support of the WRU to develop its Region, infrastructure and players.
The level of support can be discussed and agreed and will vary depending upon which areas the WRU would want Valleys Rugby to focus and develop.
The current business proposal is predicated on annual “match funding” to be provided by the WRU which would require that the WRU provide funding to Valleys Rugby at a level broadly in line with the members funding provided to Valleys Rugby.
On this basis, Valleys Rugby would seek a minimum of £1,200,000 annual funding from the WRU (via television and other rights) but would not request more than £1,500,000 from the WRU in any year, unless specifically agreed otherwise in partnership with the WRU. Any additional funding agreed would relate to player development funding if required.
This match funding structure would provide a unique partnership between the WRU, the supporters of Valleys Rugby and the traditional rugby clubs affiliated with Valleys Rugby.
If the WRU were keen for Valleys Rugby to assist with the development of professional rugby in North Wales, then Valleys Rugby would also seek the assistance of the WRU in raising any sporting or other grants available to it for the development of rugby in North Wales.
A draft operating Profit & Loss can be found within the Business Plan document. It is based on assumptions that are believed to be realistic and shows a break even figure after receipt of £1,000,000 per annum from supporter subscription and £700,000 from the Welsh Rugby Union as Valleys Rugby's share of TV rights, etc.
This loss is prior to any publicly raised funds, club funds or WRU funding. Therefore, the funding structure proposed will cover this shortfall and potentially provides an element of contingency funding.