WRU unveils new unequal funding for regions

After the Welsh Rugby Union (WRU) announced that its four regions will no longer receive equal funding, the future structure of professional Welsh rugby is uncertain.

The organization’s announcement came as a result of reports that it plans to remove a team from its professional ranks. If cutting a team is a part of the WRU’s plans, it hasn’t been confirmed or denied by the organization.

After giving a two-year notice of the current agreement that supports the Welsh professional game, WRU bosses intend to implement a new two-tier funding system.

Although Ospreys and Scarlets have not yet signed a new five-year agreement, that Professional Rugby Agreement (PRA) agreement expires in 2027, it was scheduled to replace it.

Only WRU-owned Cardiff and privately-owned Dragons managed to get the word out about the new PRA before the deadline of 8 May.

The WRU statement makes no mention of cutting a region and limiting it to three professional sides.

The organization’s governing body claims to be “open to all constructive and realistic suggestions on the way forward.”

According to WRU CEO Abi Tierney, “we are still talking to all four clubs about what the future holds.”

“We are dedicated to treating all the clubs, players, and supporters with respect and fairness throughout this process because we recognize that this will be a time of uncertainty.”

The WRU’s long-term strategy, which was launched in 2024, had been at the forefront of its ongoing effort to ensure that all four professional sides were treated equally.

Given seismic changes in the rugby landscape, the governing body claims that was the default at the beginning, but the system will not follow that recommendation.

The WRU now claims that it has made the difficult but necessary decision to “issue the formal two-year notice” to end the current PRA agreement and, specifically, to begin its debt refinancing with its bank NatWest.

However, they claim that given the WRU’s obligations to the game in Wales as a whole, the game’s wider performance, financial, and strategic needs must take precedence.

There will always be times when rugby needs to change its course, I said when I first announced the headline strategy back in July 2024.

We must take advantage of this opportunity. Our main objectives are to create a strong, top-notch structure that will support Welsh rugby’s younger and younger generations.

The professional rugby board (PRB) was established to represent the WRU and the four professional sides.

After months of negotiations, the WRU and the regions have been attempting to move the new PRA along.

The agreement also included more and fixed funding, which will increase to £6.5 million from the start of the season, as opposed to the current £4.5 million.

The governing body absorbed approximately £9 million of the capital city team’s debts and spent approximately £780,00 on fees when the WRU took control of Cardiff in April when it went into administration.

According to what it is known, Cardiff and Dragons will receive the new figures while Ospreys and Scarlets will receive the previous funding, according to what it is understood.

When the PRA was finalized in February and all parties were ready to sign it at the beginning of April, there was a glimmer of hope.

When Cardiff was placed under temporary administration and then taken over by the WRU, the process was derailed.

The two west Wales sides stated they wanted some “key issues” to be resolved after Cardiff’s takeover, and Scarlets and Ospreys had already indicated they would not sign until they received more information from the WRU.

The WRU had the option to serve a two-year notice on their current PRA deal because Scarlets and Ospreys were awaiting a response.

All supporters, players, and coaches will be concerned about the most recent crisis to affect Welsh rugby, despite the WRU announcement that there is no official direct mention of cutting a region and reducing to three professional sides.

If the WRU doesn’t fulfill its contractual obligation to provide four sides for the URC and European commitments, it will face penalties of around £5 million.

One of the justifications for the Cardiff takeover was made by WRU CEO Tierney, who claimed it was more financially prudent to keep four professional sides.

Ospreys and Scarlets are meeting to discuss their response, and they appear to have sought legal counsel. In the upcoming hours, they are expected to respond as well.

The Dragons expressed satisfaction with the WRU announcement by saying they were happy to have “signed a contract that provides the club with three years of agreed fixed funding.”

We did this in a Dragons statement to show our commitment to support Dragons RFC as we continue to develop both on and off the field.