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Wales Online
2 days ago
- Business
- Wales Online
The options available for Welsh rugby after two-year notice period activated
The options available for Welsh rugby after two-year notice period activated Welsh rugby faces an uncertain few months with big changes afoot The Welsh Rugby Union will no longer allow four equally funded teams (Image: Huw Evans Picture Agency ) The future of professional rugby in Wales is extremely uncertain after both the Ospreys and Scarlets refused to sign the new Professional Rugby Agreement. As a result, the Welsh Rugby Union issued a two-year notice on the old PRA which both clubs will remain on next season after Cardiff and the Dragons signed the new agreement. Next season, there will be a tiered funding model with Cardiff and the Dragons receiving more WRU payments than the west Wales clubs. But the long-term future of the professional game in Wales is up in the air with the WRU hoping to put a firm plan in place by September. The old PRA put back on the table for all four clubs The WRU are adamant the new PRA is off the table for both the Ospreys and Scarlets. In the new PRA, all four clubs were to see an increase in funding, would be funded equally, while the WRU would transfer their debts acquired during Covid onto its own balance sheet. But after the west Wales clubs refused to sign it after failing to meet the WRU's deadline, the governing body announced it would call in the two-year notice period on the old PRA and insisted it would no longer fund the four professional clubs equally. If the WRU were to go back, it would prove to be an extraordinary U-turn and the leadership of the governing body would be questioned. But might a public outcry and pressure from politicians within the Ospreys and Scarlets regions force the WRU to reconsider its position? Nothing is out of the question but it does seem highly unlikely as things stand. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby. Financially things have changed, with the WRU now requiring the funding directors at the professional clubs to contribute £41m over five years as opposed to the £22m it initially asked. Also, it had hoped to secure what would have been a lucrative Anglo-Welsh conference if PRL had combined with the United Rugby Championship. The poor performance of the men's national side has also hit the WRU hard, while national insurance contributions have risen and media rights are down. A club goes bust If the WRU want to go down to three, the easiest solution would be to scrap Cardiff given they own the capital city club. But not having a professional club in Wales' capital city is commercial lunacy, while they are also currently the best supported Welsh side and have an extremely strong brand. In the old PRA, the professional clubs win with the union and they lose with the union, whereas in the new one there is fixed funding for three years. Any upside in the WRU's profit goes to the professional clubs but if the governing body underachieves financially that hurts the clubs. This is the deal the Ospreys and the Scarlets will be on next season. As it stands, both the Ospreys and Scarlets will be operating with playing budgets of under £5m next season, but the biggest issue is any potential WRU clawbacks. The PRA they are on includes an underperformance clause, so for example if the WRU lost £4m last year, both the Ospreys and the Scarlets would be subject to clawbacks. Join WalesOnline Rugby's WhatsApp Channel here to get the breaking news sent straight to your phone for free For example, the WRU could demand money is returned - depending on the terms of the contract - or it could decide to issue a lower payment. Also, on top of this, they have to repay the CLBILS loan taken out during Covid, which is no longer a burden on the shoulders of Cardiff or the Dragons. But even if this was the case, both clubs would survive as long as their funding directors continue to cover any losses. By not signing PRA 25, the future of both clubs in the west has been thrown into doubt. If one club goes to the wall then the WRU could decide not to assume ownership and Welsh rugby would be down to three professional clubs. Or if two went bust, they could assume ownership of one club by playing out of either Parc y Scarlets or St Helen's. Mergers The other option is for the Ospreys and Scarlets to merge. In theory, this would create a strong side which should be able to compete in the latter stages of both the United Rugby Championship and European competitions - but it is not as straightforward as that. If two companies merge, it is usually the case they take on each other's debt which would put any new entity on the backfoot. But a large amount of their debt is actually owed to the WRU, so might the union offer to write it off if they both merge? Nothing is out of the question at this stage. Of course, another radical solution would be to merge the Ospreys with Cardiff given the capital city club is owned by the WRU. A permanent tiered funding model Tiered funding models are not a new invention and were prevalent during Project Reset with the Scarlets receiving more than the other clubs based on performance. But for the clubs to be competitive at the cutting edge of competitions it would likely need to be a very aggressive model to work. However, the biggest barrier to success in this regard is the fact three of the four professional clubs are private businesses. Who is going to accept semi-skimmed status? The answer is nobody. Could you imagine the Ospreys being one of the lowest two and losing players like Jac Morgan, Dewi Lake or Dan Edwards to the Dragons? They would not stand for it unless they had no other choice. Welsh rugby's culture and ownership model makes this unlikely to work in the long run. Why would the WRU want a reduction of professional clubs? The WRU are considering a reduction to three professional clubs, while going down to two is also not out of the question. If Wales was to go down to three clubs it would concentrate both money and talent into three teams which in theory should drive up standards. For too long, the emphasis in Welsh rugby has been on quantity over quality. The current structure spreads playing talent too thinly. A reduction to three teams would concentrate that talent, improve squad depth, and, in theory, drive up standards across the board. Get the latest breaking Welsh rugby news stories sent straight to your inbox with our FREE daily newsletter. Sign up here. It would also create greater accountability, with players forced to fight harder for places, contracts and game-time — a dynamic that invariably sharpens performance. Such a move wouldn't just be financially motivated but there is a strong rugby argument behind it. Also, is this really how professional sport should work and imagine trying to sell season tickets and attracting sponsors as one of the plus two. Legal action Of course, this could drag on for a significant amount of time if the two clubs in the west decide to take legal action. The clubs may complain there has been an abuse of the WRU's dominant position and that this amounts to anti-competitive behaviour. Some might also argue there is a lack of contractual fairness and equity in this whole process. Article continues below The WRU would inevitably counter such accusation by saying they offered the exact same deal to the Ospreys and Scarlets as they did to the other two professional clubs. But if this goes legal, it could prolong this whole saga and the WRU's hopes of putting a solution in place by September would just be a case of wishful thinking.
Wales Online
2 days ago
- Business
- Wales Online
WRU announce major new appointment at critical time for game in Wales
WRU announce major new appointment at critical time for game in Wales The WRU have announced a major new appointment New WRU CCO Leighton Davies (Image: Huw Evans Picture Agency Ltd ) The Welsh Rugby Union (WRU) has appointed Leighton Davies as its new Chief Commercial Officer (CCO). This new role was previously described as the Chief Growth Officer and has been created to bring growth to the WRU and the whole Welsh rugby ecosystem. Davies is currently WRU Chief Operating Officer (COO) and, having led the effort across the business to implement robust business process and a solid financial foundation, will take up the new role later this summer - with a replacement COO to be recruited. He is also the WRU Chief Operating Officer having joined the WRU as Chief Financial Officer in March 2024, while he also sits on the Professional Rugby Board. 'I am really excited to be taking up this new role," said Davies. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby. "Welsh rugby possesses a huge amount of unrealised potential and this is what directly attracts me to this position. "The game is undoubtedly going through a tough time, not just in Wales, but globally, but I'm hugely excited about the potential of our new strategy and plans.' The professional game in Wales is at a critical stage in its history after the Ospreys and Scarlets refused to sign the new Professional Rugby Agreement due to concerns the WRU were planning to turn Cardiff into a super club after buying the capital city side. Following Cardiff and the Dragons' decision to sign PRA 25 it led to the WRU activating the two-year notice clause on the old agreement, leaving the two west Wales clubs in limbo. The future direction of professional rugby in Wales will be decided over the coming months but a reduction to three or even two clubs is a very real possibility. Join WalesOnline Rugby's WhatsApp Channel here to get the breaking news sent straight to your phone for free As a result Davies will have a critical role to play in the future direction of the professional game. 'We are delighted that Leighton has accepted this new challenge in such a pivotal role for Welsh rugby," said WRU CEO Abi Tierney. Article continues below "It is a key position for us as we continue the process of professionalising and further commercialising ourselves to meet the challenges faced by all of Welsh rugby as part of our five-year One Wales plan.' Get the latest breaking Welsh rugby news stories sent straight to your inbox with our FREE daily newsletter. Sign up here.
Wales Online
3 days ago
- Sport
- Wales Online
Sam Warburton says 'cut-throat' decision needed over regions and reveals his 'preference'
Sam Warburton says 'cut-throat' decision needed over regions and reveals his 'preference' Welsh rugby faces the possibility of cutting a professional club and Warburton is on board with that Warburton believes the WRU needs to cut a region (Image: Bob Bradford - CameraSport via Getty Images ) Sam Warburton has urged the Welsh Rugby Union to cut one of its four professional clubs for the greater good of the game in Wales. Welsh rugby is currently in limbo after the Ospreys and Scarlets both declined to follow Cardiff and the Dragons in signing the new Professional Rugby Agreement with the WRU. As a result the WRU have served a two-year notice to both the Ospreys and Scarlets on the old PRA, meaning there will be a tiered funding model next season. Going down to three professional clubs is a very real possibility and Warburton insists it needs to happen if Welsh rugby is to drag itself out of the abyss. "I've said they need to be cut, I don't want them to," Warburton told Mirror Sport. "I would love us to keep four teams and add a north Wales region and have players pouring out of that pathway but that's not happening and it's not happening down south either. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby. "All the reviews that have come about have all concluded for the last 10 years that you need to go down to three. "We've fought to keep four from a good place to keep them alive, but the reality is we just can't and we have to drop to three. "I don't want it, but if we're looking at it subjectively it has to happen. "My preference would be a merger, but if no one is willing to merge then unfortunately there has to be a cut throat decision. "Is it perfect? No. "Whether it is right or wrong, nobody has the right answer. Join WalesOnline Rugby's WhatsApp Channel here to get the breaking news sent straight to your phone for free "But one answer we do know is we've had four teams for 20 years and it's bought no success. "The daft thing is to keep doing the same thing and expecting a different result. "I fully support going down to three, from a player quality perspective, we can't support four teams nor do we have the funding." Get the latest breaking Welsh rugby news stories sent straight to your inbox with our FREE daily newsletter. Sign up here. Article continues below Reducing to three professional clubs would concentrate both money and playing talent, which in theory should drive up standards on the field.
Daily Mirror
3 days ago
- Sport
- Daily Mirror
Warburton "fully supports" cutting Welsh region - "it has to happen"
Sam Warburton admits Wales needs to cut one of its regions and go down from four teams to three with their player pool and funding unable to maintain its current structure Sam Warburton confessed with a heavy heart that Welsh Rugby has to cut one of its four regions with the former captain admitting the "daft thing is to keep doing the same thing and expecting a different result". With the country's player pool drying up and funding becoming an issue with each passing year the expectation is that one of the Ospreys, Scarlets, Dragons or Cardiff Blues is set for the chop. Warburton himself came through the ranks at the Cardiff Blues, playing his whole career in the capital, but is a believer that going down to three teams is ultimately in the nation's best interest. Especially as they look to rebuild and snap a winless run that now stands at 17 games - the most for a tier-one nation in the professional era. The WRU announced earlier this month that its four regions will no longer be equally funded as reports continue to swirl over a team being cut. Warburton claimed keeping four for so long came from "a good place" but the time had come to either merge a region or be ruthless. He told Mirror Sport: "I've said they need to be cut, I don't want them to. I would love us to keep four teams and add a north Wales region and had players pouring out of that pathway but thats not happening and it's not happening down south either. All the reviews that have come about have all concluded for the last ten years that you need to go down to three. "We've fought to keep four from a good place to keep them alive, but the reality is we just can't and we have to drop to three. I don't want it, but if we're looking at it subjectively it has to happen. My preference would be merger, but if no one is willing to merge then unfortunately there has to be a cut throat decision. Is it perfect? No. Whether it is right or wrong, nobody has the right answer. "But one answer we do know is we've had four teams for 20 years and it's bought no success. The daft thing is to keep doing the same thing and expecting a different result. I fully support going down to three, from a player quality perspective, we can't support four teams nor do we have the funding." Welsh rugby bosses intend to implement a new two-tier funding system and have served a two-year notice on the current agreement that had remained the central cog of the domestic game. That current Professional Rugby Agreement (PRA) deal runs out in 2027 and was due to be superseded by a new five-year deal that Ospreys and Scarlets have not signed. Only Cardiff, who are owned by the WRU, and privately-backed Dragons have put pen to paper. The four sides are expected to exist in their current form until at least June 2027, but beyond that it remains unclear what direction the Welsh game will go in. The governing body says it has an "open mind to all constructive and realistic proposals on the way forward".
Wales Online
3 days ago
- Sport
- Wales Online
The Welsh rugby team sending a clear message to the WRU after all that's gone on
The Welsh rugby team sending a clear message to the WRU after all that's gone on The Scarlets are taking on Leinster in the URC play-offs this weekend Scarlets head coach Dwayne Peel with his players (Image: Huw Evans Picture Agency ) Scarlets head coach Dwayne Peel says that his side can strengthen their position with a run in the United Rugby Championship play-offs amid all the uncertainty off the field in Welsh rugby. The west Walians are the only Welsh side in the URC play-offs, with a match against Leinster in Dublin this weekend. However, their run to the play-offs have been overshadowed by off-field events - with the Scarlets one of two teams, along with the Ospreys, not to have signed the new Professional Rugby Agreement. That has seen the Welsh Rugby Union begin the process to implement the two-year option on the existing PRA, putting the futures of the two west Wales teams at risk. However, as the Scarlets - back in the play-offs for the first time since reaching the final in 2018 - head to Ireland, Peel says the players haven't been too concerned about what has been going on in boardrooms. "I think within these four walls obviously, it's not really overshadowed it," said Peel. "I think that, for ourselves, we focus a lot on the rugby. Conversations have been happening here as well above our heads and we're up to date and up to speed with everything that's been going on. "But we've concentrated on the game in hand. For ourselves and the region as a whole, I think it's a great week to be part of." Should Welsh rugby find itself in the position where four teams does go down to three, a number of different factors will likely decide who goes. Quite simply, with the two west Wales clubs on a different financial agreement to Cardiff and Dragons, merely who is able to survive the coming years could determine it. But, were it to come down to looking at the four sides equally, the fact that the Scarlets are the only team in the play-offs could, in theory, count for something. "Yes, I suppose there is an argument for that," admitted Peel. "I think that there's a lot of things that will come into that meritocracy argument, I'm sure. "For us, we're a proud region and rugby means a lot to the people of our community. And I think that if there's anything that we can do to improve our argument - to highlight it - that is performing on the field. "That undoubtedly carries weight. It's about us representing this great club and region, really doing it to the best of our ability, and putting our best foot forward. "That's all we can do as staff and players. For me, that has always been a big part of of our culture. That has always been a big part of why we play the game here. "For me, it was a big part of why I wanted to come back. I've I loved it as a player and I've loved being part of it as a coach as well. "So I think that it's about representing this region to the best of our ability. "If we can go as far as we can in this competition, then that highlights what it means to us as a group, and what it means to our fanbase and stakeholders." Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby. On whether on-field success should carry the most weight when it comes to deciding teams' fates, Peel added: "I can only speak from my perspective and I always want to be here as a successful rugby team. "I think that everything that carries off the back of that – the decisions – they are out of my hands. "All I can do, all we can do as a group, is put our best foot forward. "By us being successful, by us winning rugby games, that's the only currency we have as rugby players and rugby coaches." As for how the current situation would affect Peel in terms of building towards next season, the former Wales scrum-half was fairly relaxed as he kept his focus on the Irish province. "I think that those type of things will play out over the next couple of weeks and all we can do is concentrate on the here and now," he said. "The reality is that there are conversations going on above our heads at the minute and I know we're up to speed with everything. We have in our board to do the best best by this region. Article continues below "I think that all we can do as a group of players now is to continue playing as hard as we can and the other things will fall into place off the back of it. "As a group of players, we have an exciting weekend for us and the supporters. The board are obviously working hard on in the background."
