The Welsh Rugby Union (WRU) is set to be paying for its showpiece Millennium Stadium for at least another 35 years under the terms of a debt re-financing package announced on Thursday.
The WRU is 55-million pounds ($104-million) in debt, the entire deficit resulting from cost over-runs in the construction of and a lack of income from the 73 000-capacity stadium which is sited in the heart of Cardiff, Wales’s capital city.
Since it opened on the site of the old National Stadium in 1999, the Millennium, which boasts a retractable roof, has been widely admired as one of the most impressive venues in world rugby.
But while the 144-million pounds arena has played host to English football’s major domestic finals during the rebuilding of Wembley Stadium, critics have argued the Millennium — the occasional pop concert apart — has been under-used, especially
given its ability to effectively become an ”indoor” site.
Under the terms of the deal, the WRU has been granted permission by the Millennium Commission, the public body which gave 46-million pounds from Britain’s National Lottery towards the building of the venue, to seek a naming rights sponsor for the stadium provided the word ‘Millennium’ remains in the title.
Meanwhile of the WRU’s total debt, 45-million pounds will be repaid to lender Barclays Bank over 35 years with 10-million pounds, the amount owed to British Telecom, effectively written off as ”non-accruing debt incurring no interest of repayment,” according to a statement WRU chairperson David Pickering said the deal marked the major triumph of a rugby career that included 23 caps as a back-row forward for Wales, eight as captain.
”As a player, I was fortunate enough to captain Wales and play continually for five years for my country, including successive victories over England at Cardiff,” Pickering said.
”As manager of the national team, I was lucky enough to experience a record 10 victories in a row, including beating South Africa for the first time in our history.
”But it is as chairman that I have been fortunate to see our greatest success. The refinancing package agreed with Barclays Bank has been 14 months in the making and has secured the future viability of the Millennium Stadium and the Welsh Rugby Union as an entity.”
The union’s financial position contributed to a series of clashes with wealthy club backers who have bankrolled teams in the professional era, a dispute that ultimately led to the demise of the Celtic Warriors earlier this year.
That left Wales — a country where rugby union has traditionally been the national sport — with just four professional clubs.
And next year is set to see the end of English football finals at the Millennium with those fixtures reverting to the rebuilt Wembley from the 2005-06 season onwards. – Sapa-AFP