Welsh rugby clubs have been called upon to finally end wrongful payments to players in the amateur game.
Wales' 300-plus grassroots clubs are able to openly pay their players with revenue they generate themselves if they abstain from signing the Welsh Rugby Union's "statement of truth" - a declaration that a club's players are not being paid - but doing so prevents them from receiving their £4,000 in core grant.
But clubs receiving the funding and also paying players on the quiet, in breach of WRU policy, has arguably been Welsh rugby's worst-kept secret for a number of years, with many feeling that paying amateurs for their time over investing in infrastructure and facilities is a waste of financial resource.
Welsh Rugby Union community director Geraint John has called upon clubs to finally end the "brown-envelope" era, which was notorious before the game went professional in 1995, once and for all in light of the current economic and cost of living crisis.
"There's always rumours around it in the amateur game, not just in Wales but around the world, and we are hearing more rumours than ever before with clubs telling us they are losing players because of payments," John told WalesOnline.
"Clubs have to make sure they are sustainable in the future, they've got to look at the key things they need to be able to pay and how they are going to grow to support their communities. Our clubs are key, they are the hub of their community. We have all worked hard over the last two and half years to get through what has been a tough time with Covid and our clubs and volunteers have been fantastic with their energy and hard work. However, right now we know energy bills are going to go up, utility bills are going up, cost of living is increasing and hopefully they are looking at that - and we are here to help - or is paying a player the key thing? We won't survive that way."
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Welsh Premiership clubs hold an A licence, granted based on criteria including ground facilities, and are therefore exempt from the "statement of truth", while Championship clubs Neath, Bargoed, Pontypool, Cross Keys and Bedwas also hold the licence and are therefore free to pay players if they so wish.
Just four grassroots clubs opted not to sign the "statement of truth" for the 2021/22 season, allowing players to be openly paid. Those clubs were Newbridge, Tata Steel, Narberth and Glamorgan Wanderers. They had also opted not to sign the document for the two seasons which preceded the Covid pandemic too, and in 2019/20 they were joined by Brecon and Blackwood.
In addition to the core grant, grassroots clubs receive additional payments through a points-based system which examines the number of teams they run and their development programmes for junior players and coaches, with the money intended to go towards running clubs, the upkeep of facilities, transport costs, insurance fees and utility bills. None of it is supposed to be used to pay players. Another primary source of income is via sponsors.
In terms of unsanctioned player payments, it has proved a difficult issue to fully police, but with the first "regular" season since before Covid on the horizon, the WRU is looking closely at the matter again with a sub-committee being formed this season for this purpose.
Back in April 2020, as Covid gripped the UK and Europe, then-WRU chairman Gareth Davies issued a message to clubs which remains just as relevant today.
“Why do clubs, who exist for rugby and rugby alone so unnecessarily drain the very resources which could ensure long term sustainability by insisting on paying players?” he said. “If no club offers payment, then there will be no market for player wages and no club will feel the need.
“Don’t pay players. Play in the league you are in, strive to beat the opposition you face, dream of lifting the trophies available at your current standard and attract the players who are drawn to your club. Use the money you save on attracting, developing and engaging players for the future or on ensuring your club remains the central hub of your community that it has always been. Be sustainable and help safeguard the future for us all and ensure we are promoting a game for everyone .”
In 2019, the WRU issued a firm warning to clubs that they could be in breach of PAYE and tax obligations if they failed to give notice of their payment of players. The Union also encouraged clubs to report other teams they suspected of doing this to HMRC.
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