EBBW Vale chairman Marcus Russell has hit out at the dual contract system employed in Welsh rugby.

On Monday, Russell had to make 14 people redundant - eight staff and six players - to ease the club's cash flow problems.

One of the reasons for the club's financial problems, he says, is the unfair dual contract system.

And chief executive Tony Dilloway, who makes himself redundant at the end of August, says there are too many financial variables in Welsh rugby.

Under the dual contract system, brought in during Graham Henry's reign, clubs are compensated for the number of players they have in the national squad who are taken away from them for training and international duty.

"The system is completely unfair," said Russell, citing the example of Iestyn Thomas, who has left Vale to join Llanelli.

That means Llanelli could benefit to the tune of £40,000, money Russell believes should go to Ebbw Vale as they brought him up to international standard.

"Even Wales coach Steve Hansen says it's only right we get that money, not Llanelli," said Russell.

And Dilloway says the Ebbw Vale situation, where they have had to make redundancies and mothball their off-the-field activities, is a lesson to Welsh rugby.

"There are too many variables in the distribution of funding," he said. "It all works in England because the clubs there are equally funded. There is always room for investors over that.

"Here there are several variables -- merit money, dual contracts, TV money, European qualification.

"Altogether, they're very damaging for clubs like Ebbw Vale which makes it difficult to move it forward."

Dilloway took the remarkable step of making himself redundant. "I did that because it's important we held on to the core product which is rugby. If we didn't have that, there would be no future," he said.

No announcement of who the six players to lose their jobs has been made but coach Mike Ruddock said he knows who they are but refused to name them.