Welsh Rugby Union to help out professional regions with intrest-free loans
Last Updated: 18/02/14 5:24pm
The Welsh Rugby Union has agreed to give its four professional regions interest-free loans.
Cardiff Blues, Ospreys, Scarlets and Newport Gwent Dragons will enjoy a share of £660,000, to ease their cash-flow problems caused by European Rugby Cup's decision to withhold tournament payments.
The regions had each been expecting a pay out of around 200,000 euros from the ERC but this has been held back ahead of future discussions.
The payments were due to be made earlier this month to the teams taking part in this season's European club competitions.
However, the ERC said its decision to postpone payments followed legal advice received by its board.
In a statement, the WRU said: "The Welsh Rugby Union Board has approved requests from the four regional organisations for financial assistance in the form of interest-free loans totalling £660,000.
"This will help their cash-flow as a result of the recent decision of the ERC board not to release financial distributions to participants in ERC's tournaments.
"In a statement on Wednesday, February 5, ERC explained that the unanimous decision to postpone financial distributions followed preliminary professional advice received by the ERC board and was taken in the best interests of ERC."