The Welsh RFU last night threw ambitious plans for a British League competition this season off their agenda, The WRU's general committee met in emergency session and decided that for legal reasons they could not support a British League starting next month.
However, WRU president Sir Tasker Watkins said they were "in favour" of entering discussions aimed at starting a British League tournament for season 1999-2000.
The legal barriers in question are top English clubs' legal application to the European Commission concerning the rights to negotiate their own commercial contracts, and the ongoing battle between the WRU and Cardiff.
Cardiff and Swansea have now been given until 1.0 p.m. on Monday to sign controversial loyalty agreements with the WRU. Cardiff and Swansea, together with two other Welsh clubs, would be part of any British League set-up this term.
Sir Tasker said: "There are legal barriers to a British League's formation for the time being, and until they are out of the way, it is not possible to enter into a cross-border competition."
Last night's developments came following a 2 1/2 hour meeting, and were in stark contrast to the positive and upbeat soundings made by WRU chairman Glanmor Griffiths on Wednesday.
Cardiff and Swansea must now decide their next move, but could even opt to enter a British League irrespective of the WRU's announcement.
WRU secretary Dennis Gethin said: "We are doing everything we can to get a better standard of club competitions in Wales, but because of the legal situation it is impractical to have a British League in place for this season."
Meanwhile, European Cup organisers were still keeping two separate draws for this season's competition - due to start in five weeks' time - up their sleeves prior to its projected announcement today.
One entails a 16-team European Cup draw without the English clubs, to be divided into four groups of four, and the other a 20-team competition incorporating Newcastle, Saracens, Bath and Leicester. In both cases Neath and Llanelli were on stand-by for Cardiff and Swansea, who were thrashing out their differences with the WRU.
English participation in the European Cup hinged on the outcome of a meeting between representatives of the 24 Premiership One and Two clubs with English RFU chairman Brian Baister in London. Up for discussion were the ratification of the mooted 20-team British League and/or an Allied Dunbar fixture list for the season. The Welsh decision will have obviously scuppered their British League plans.