David Moffett has already made swingeing cuts in the WRU

On Saturday Welsh rugby's governing body issued its accounts for the 2002/03 financial year to its member clubs and affiliated bodies - and it didn't make for pleasant reading.

Losses on the rugby side were just under �4m, compounding difficulties for the group which is already struggling with debts of �66m.

However, money earned from the Millennium Stadium plc - which has hosted a variety of sports other than rugby union, including football, rugby league and speedway, plus occasional concerts - reduced the overall deficit.

There was also a boost for grassroots rugby, with the news that the Union had secured European Objective One funding for its regional academies.

The figures are obviously not as we would like them WRU group chief executive David Moffett

The WRU spends �350,000 per annum on the academies and it is hoped that the European funding will match that sum for a period of four years.

WRU director of rugby Terry Cobner told BBC Wales Sport: "With that money we can a appoint an academy director, two skills coaches and a conditioning coach who will be dedicated to making their players and regions the best in Europe."

Deficit

The main reason for the Union's massive loss is reduced revenue from Six Nations matches and writing off considerable debts from some of the leading clubs.

There were only two home games for Wales during last season's Six Nations, compared to four the season before. Sponsorship income also fell.

However, it was the year that David Moffett arrived to take up the post of WRU group chief executive and the figures explain why he has made such sweeping cuts across the board.

Part of the loss is because he has written off �2.5m of loans to the clubs, largely to help bring in regional sides.

The bulk of that money was owed by Swansea, Llanelli, Pontypridd and Ebbw Vale.

"The figures are obviously not as we would like them, but we have been through an extraordinary 12 months," Moffett said.

"Many of the decisions we have taken in the past year will help us improve financial performance."

WRU plans performance review

Moffett's cost-cutting exercise has saved the WRU more than �300,000, but required the Wales 'A' side to be sacrificed for the immediate future.

Moffett is also planning a thorough investigation of failings on the field, following a season of what he termed as "unacceptable" results.

It is Glanmor Griffith's last year as treasurer of the WRU, but with the arrival of Moffett and an extra full house at the Millennium Stadium, things are likely to improve next year.

Griffiths resigned as chairman of the WRU earlier this month, citing personal reasons.