Rugby correspondent Steffan Thomas has laid bare the brutal reality of Welsh rugby’s latest crisis in the latest Inside Welsh Rugby newsletter
There is rarely a dull moment in Welsh rugby, but this summer promises to be more turbulent than any that has come before. The Ospreys and Scarlets’ decision not to sign the Professional Rugby Agreement has seen the WRU pull the plug on the current Welsh rugby landscape and thrown the game into complete uncertainty.
Ospreys and Scarlets say they refused to sign the PRA until they received additional clarifications on the sums of money going into Cardiff, which I understand could amount to £2-3m, after the WRU took on the role of benefactor. They say this was not an unreasonable request and it’s hard to disagree with them.
In the wake of the WRU activating the two-year notice period on the old PRA, the game in Wales now faces the real prospect of having to reduce the number of professional clubs to three.
As it stands, next season we will have a tiered funding model whereby Cardiff and the Dragons will receive significantly higher playing budgets than the west Walian clubs, along with significant debt relief.The Dragons have come in for some unjust criticism from some quarters for signing up to the deal, but the responsibility of the club’s board was to ensure their survival along with plotting a path for a future where they can thrive.
As of next season, both Cardiff and the Dragons will have playing budgets of £5.4m, which will then rise to £6.2m the following year and £7.2m the year after.
In comparison it is believed the Ospreys and Scarlets will have budgets under £5m next season. On top of this, they will still be saddled with debt acquired during Covid and will not receive the £3m worth of debt relief the others will.
This is a scenario that would simply not be financially viable as the months tick on. Sign up to Inside Welsh rugby on Substack to get exclusive news stories and insight from behind the scenes in Welsh rugby.
On the old PRA, any upside in the WRU’s profit goes to the professional clubs but if the governing body underachieves that hurts the clubs. You win with the union and you lose with the union and the Ospreys and Scarlets will be in that position next season.The performance of the WRU has undoubtedly been hit by the struggles of the men’s national team through lower ticket sales at lower prices. Six Nations competition prize money is significantly down over the past year or two, while increased National Insurance contributions have also hit WRU finances.
I also understand the clawbacks facing those in the west next season are significant because of the underachievement of the WRU in the last financial year.The Ospreys and Scarlets have valid concerns, but the new PRA is off the table and the future of professional rugby in west Wales is in an extremely precarious position.
According to WRU insiders, the funding directors at the professional clubs will now be required to contribute £41m over the next fiver years, up from £22m. Think about that for a minute when considering how all this may play out.There are huge problems ahead but there has to be professional rugby in west Wales. It’s just a matter of how that looks.
Since 2015, 49% of Wales internationals have originated from either the Ospreys or Scarlets academy which emphasises their contribution to Welsh rugby.
Rugby is an emotional subject in Wales, and when the news emerged over the weekend, it landed like a lead balloon on social media. Supporters of the four professional teams have responded with understandable fury.
Why four teams is no longer an option
Many view the proposal on the table to cut to three teams as short-sighted and unambitious, warning that it could shrink the nation’s playing pool, further weaken the national side, and disenfranchise a large segment of the Welsh rugby public.
In the latest edition of the Inside Welsh Rugby newsletter, Steffan Thomas goes on to outline why four professional clubs in Wales is no longer a sustainable option. The full newsletter is available to both free and paid subscribers in full and you can sign up here to read it.
Inside Welsh Rugby is a weekly newsletter which gets under the skin of the game in Wales, attempting to get to the heart of the issues and biggest stories.
Written by WalesOnline rugby correspondents Steffan Thomas and Ben James, it takes readers deep into the heart of Welsh rugby, while also shining a light on problems which need to be fixed in order for the game to flourish. There is also be deep-dive analysis, explaining to readers exactly what’s happening on and off the pitch. Sign up here
