Steve Phillips has worked at the Welsh Rugby Union since 2007.
Welsh Rugby Union (WRU) interim chief executive Steve Phillips says the organisation needs financial assistance from its own government to match the other home nations.
England, Ireland and Scotland's rugby authorities have already been handed financial packages by their respective governments.
The WRU are facing the prospect of no crowds for the 2021 Six Nations home games against Ireland and England.
That would mean a £14m revenue loss.
The UK government's package last month saw £135m pledged to rugby union in England as part of the £300m winter survival package.
Provisionally the Rugby Football Union (RFU) - which governs the sport in England - is set to receive £44m, Premiership Rugby clubs are expected to get £59m, Championship clubs £9m and community clubs £23m.
Rugby union in Scotland will receive £20m. Of that £5m is in loans and £15m grants.
The WRU posted a £5.3m loss for the last financial year. Phillips has suggested the WRU could lose £35m of revenue if the 2021 Six Nations joined the home autumn programme in being played behind closed doors, with Wales due to host Ireland and England in February.
The new tiered system announced by the Welsh Government this week has virtually put paid to hopes of having fans in for the Six Nations matches. This means there is a greater urgency for a cash injection into Welsh rugby.
Sport Wales is the national organisation responsible for developing and promoting sport and physical activity in Wales and is the main adviser to the Welsh Government on sport.
'Positive conversations'
"Positive conversations are continuing with both Welsh Government and Sport Wales about vital funding for the game, as we now face the likelihood of no meaningful crowds for the Six Nations 2021," Phillips wrote in his letter to clubs.
"This is, of course, in line with what has been announced in England, Ireland and Scotland already.
"Sport Wales have been tasked with determining the requirements of relevant sports and they fully recognise Welsh rugby will form a fundamental part of the request.
"The finish line may be in sight as the world looks to vaccination to eliminate the threat of the coronavirus, but there are large elements of the game in Wales that can do no more than limp towards it and there is now a realistic prospect that - without more funding - there will be material losses."
The WRU has so far negotiated a £20m bank loan to help the four professional regions survive over the next 12 months.
The money has to be paid back by Cardiff Blues, Scarlets, Ospreys and Dragons over five years. The regions were expecting to share £25m this year before the pandemic but that dropped to £3m.
The regions are getting impatient, with Blues chief executive Richard Holland calling on the Welsh Government to rethink its financial offering.
"We do not expect crowds to return to sport in Wales in any meaningful numbers ahead of our home Six Nations matches at Principality Stadium in the new year," said Phillips.
"That will not only impact the WRU but also our professional regional sides in terms of matchday income, and our semi-pro and community game will also continue to be directly affected in this manner.
"Significantly reduced income will lead to difficult choices being forced on us. No one wants to see investment reduced for projects designed to make rugby accessible and available to all.
"We have shared this with the Welsh Government, but they have an overriding priority to ensure the safety of the nation first and foremost. They also have much going on and must put national health first.
"There is a genuine balance to be struck here, but I would like to reassure all elements of our professional and community game we are continuing to make our case in an unrelenting and orderly manner as this terrible virus tightens its grip.
"We've had direct positive assurances from the Welsh Government they are 'minded to support' and, for now, those assurances are good enough for us."
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