The Welsh Rugby Union (WRU) has announced it will move away from a model of four evenly funded clubs after Ospreys and Scarlets did not sign up to its new Professional Rugby Agreement.
The agreement (PRA25) had been signed by Dragons and Cardiff, who were last month taken over by the WRU having served formal notification that they intended to enter administration.
Last week Ospreys and Scarlets said they had asked the WRU for assurances that the takeover “will not disproportionally benefit Cardiff and disadvantage the independent clubs”, adding: “Until we have greater clarity, we are currently unable to sign the PRA25.”
On Sunday, the WRU released a statement saying that with those clubs not signing by the deadline set, it had therefore taken the “difficult but necessary decision to issue the formal two-year notice to terminate the current PRA agreement in order, in particular, to proceed with its debt refinancing.”
The statement continued: “The One Wales Strategy [unveiled in June last year] was designed to create a more aligned, financially sustainable and competitive future for professional rugby across Wales.
“The WRU’s preference from the outset was to maintain four professional clubs [on equal funding] within this framework. Everyone worked hard to achieve that. However, agreement on the new PRA25 could not be reached with two of the professional clubs.
“This is not a decision that was taken lightly, however given the WRU’s duties to the game in Wales as a whole, the broader performance, financial and strategic needs of the game must take precedence.
“In practical terms, the WRU will work closely with all four professional clubs to agree the way forward beyond June 2027, with an open mind to all constructive and realistic proposals.
“That said, given the seismic changes in the rugby landscape since we first started negotiating PRA25, the system will not return to the model of four evenly funded clubs.”
WRU chief executive Abi Tierney said: “We are continuing to talk to all four clubs about what the future will hold.
“We recognise this will be time of uncertainty and are committed to treating all the clubs, players, and supporters with respect and fairness throughout this process.
“We acknowledge the continued commitment of each club to Welsh rugby and will formulate a new plan with the best interests of the whole game in Wales at the forefront of our thinking.
“When I announced the headline strategy back in July 2024, I said one thing is for certain, given the challenges facing rugby in Wales and globally, there will be times when we need to adjust our course. We must seize this opportunity.”
Professional Rugby Board chair Malcolm Wall said: “The next phase of consultation, as always, will be conducted with the best interests of the whole of Welsh rugby at its heart.”
