Regions in jeopardy unless WRU deal is signed

Scarlets, Ospreys, and Dragons are required to sign a new Professional Rugby Agreement (PRA) by the Welsh Rugby Union (WRU), or they could face a two-year notice period that could threaten the region’s future.

Following a meeting with the three teams on Tuesday, the WRU wrote to them to discuss the potential for significant changes in professional rugby in Wales.

The parties made it known in February that a five-year deal had been in principle agreed upon, but that was before Cardiff’s temporary administration and WRU acquisition.

Scarlets, Ospreys, and Dragons initially received a notification on April 15 to confirm their intention to accept the new proposal, but Scarlets, Ospreys, and Dragons expressed concern about what Cardiff’s change in ownership would mean.

The proposed agreement is intended to be a crucial component of WRU’s long-term strategy, which it has called the “One Wales” strategy.

Wales’ BBC Sport understands that if the three independent regions fail to sign, the WRU will consider options that could lead to lasting structural changes in Welsh professional rugby.

Despite chief executive Abi Tierney repeatedly expressing her desire to keep all four regions, one possible outcome could be a decrease in the number of Welsh professional teams.

Welsh teams competing in the United Rugby Championship (URC) and European competitions are granted licenses by the WRU.

After serving a two-year notice period, the union has the right to revoke those licenses, but they would face severe financial penalties if they did not continue to offer four sides for the respective competitions.

The independent clubs have expressed concern that the proposed agreement would not establish a cap on the amount of money that WRU could give to Cardiff, which could put the other teams at a disadvantage financially.

Last month, WRU President Richard Collier-Keywood reaffirmed that it was the WRU’s intention to “provide the other three professional clubs with similar debt relief.”

The union has stated that the WRU will establish a subsidiary to run the Arms Park outfit on an independent basis and that Cardiff will be set up on the same terms as the other clubs under the new PRA.

Scarlets, Ospreys, and Dragons had a deadline of 15 April to confirm their intentions to sign the agreement, according to Collier-Keywood.

As negotiations continued, Tierney acknowledged that Dragons, Ospreys, and Scarlets had “some very valid questions” regarding what the union’s ownership of Cardiff “means for the PRA and what it means for the other three clubs.