Dennis Gethin has jumped to the WRU's defence
Brown believes that the game's governing body in Wales could have done much more to alleviate the problems that have beset the clubs since they turned professional.
Another charge levelled at the WRU by the millionaire businessman is that it has not marketed the game properly.
"I don't think the concept of professionalism is understood within the WRU," Brown said.
"There is a lot of well-meaning people within it but in terms of what the professional game requires commercially, I don't think they have the slightest idea what the thing is about.
"In a commercial organisation you would have a professional board there, where marketing would play a much bigger role than it does at this time."
Brown admitted that the situation is getting better but maintains that there is still a long way to go before the club owners are satisfied with the WRU's performance.
"It does illustrate a considerable misunderstanding and some ignorance of the total rugby picture in Wales," Gethin said.
"I'm the first to admit that there is room for improvment within the Union, and we are addressing that, and there is certainly no room for complacency.
"But if it is menat that professional means financial matters, then the record of some of the so-called leading clubs over the last few seasons makes some dismal reading.
"What we need to do is work together to improve the situation throughout Wales. The whole structure of Welsh rugby will be looked at."
In contrast, Brown believes that many of the problems suffered by the clubs were compounded by the WRU.
"If you look at the organisation and the problems that professional clubs have had in Wales it's a very, very sad story," Brown added.
"They're probably using it as a text example at various business administration courses in terms of how not to advance the game!
"A lot of the pain and suffering that Welsh rugby has gone through could have been avoided in hindsight with a more professional set-up."