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Wales Online
Sport
Matthew Southcombe

Welsh rugby's governance structure explained as it comes under fire

The word 'governance' has been blurted out in increasingly exasperated tones in Welsh rugby circles of late.

Whenever turbulence is encountered, what is thrust into the spotlight are the structures that determine how the Welsh Rugby Union operates - and we've come across more waves than still water in recent times.

Off-field issues really came to a head earlier this year when the Oakwell Report - an exploration of the strategic options available to Welsh rugby - was leaked.

READ MORE : Welsh rugby players speak out anonymously as 'ridiculous' situation clouds everything

The Professional Game Board - a gathering of representatives from Cardiff, Dragons, Ospreys and Scarlets, the Welsh Rugby Union and independent figures - has been at loggerheads for months over how best to proceed and there is little suggestion that we're any closer to an agreement than we were at the start of the summer.

Resolving the issues facing professional rugby in Wales sits with the PRB. The question over whether the current framework is befitting of a £90 million business is something else entirely, some critics would say.

Journey to the WRU Board...

Current WRU Board

Rob Butcher (Chairman, joined the Board in 2015), Anthony Buchanan (National Council Member, 2022), Ieuan Evans (National Council Member, 2020), Dave Young (District B, 2014), Chris Morgan (District D, 2014), Phil Thomas (District F, 2015), Chris Jones (District G, 2018), Colin Wilks (District A, 2019), Steve Phillips (WRU CEO, 2020), Henry Engelhardt (Independent Non-Executive Director, 2021), Catherine Read (Independent Non-Executive Director, 2021), Malcolm Wall (PRB Chair, 2022).

So how does one end up on the 12-person WRU Board of Directors?

Within the current structure, the first step is to be elected onto the WRU Council and become one of a maximum of two district representatives for your area. There are currently nine districts but four only have one representative. Becoming one of the 14 district reps puts you in a position to become one of the six on the WRU Board.

Within the WRU Council, there are also five National Council Members, of which two are elected to the WRU Board. To become a National Council Member, you must again be elected by the community clubs.

Council members serve three-year terms before having to stand for re-election but can only serve nine years in total. Former chairman Gareth Davies wrote this into the Articles of Association in 2018, so that is when the nine-year countdown began for members, regardless of time served beforehand.

Just about anyone can stand to be a district rep, regardless of experience, if they are able to convince the voting clubs within their area that they are the right person for the job.

The WRU chief executive, Steve Phillips, and PRB Chair, Malcolm Wall, also sit on the board alongside two appointed Independent Non-Executive Directors.

Why the consternation?

You often hear talk about the splitting of the professional and amateur games in Wales. In many ways, that happened when the PRB was created alongside the also-formed Community Game Board.

The key point here is that those boards sit underneath the WRU Board in the structure. So they cannot make moves at any great pace because meaningful steps require ratification from the WRU Board, which has a community game majority.

There is support from some for the idea that the PRB should have total autonomy over its affairs. Why should decisions that solely impact the elite game be so heavily influenced by Board members whose expertise does not lie within it? Valid points, critics would agree.

In practice, though, there are not a plethora of examples of the WRU Board blocking PRB moves. It is thought that they would be unlikely to oppose anything that didn't impact on the community game, or the clubs' ability to call an EGM with support of just 10% of them, as is currently the case.

That said, the WRU Board elect the union chairman, who appoints the CEO, who sits on the PRB. So they are responsible for putting at least one person in the room.

Current PRB

Alun Jones (Cardiff Rugby, Chairman), David Buttress (Dragons Rugby, Chairman), Nick Garcia (Ospreys, CEO), Simon Muderack (Scarlets, Chairman), Steve Phillips (WRU, CEO), Tim Moss (WRU, Finance Director), Malcolm Wall (Independent Chair), Marianne Økland (Independent Non-Executive Director).

Meetings are also attended by Nigel Walker (WRU, Performance Director) and Jon Daniels (Rugby Management Board, Chair).

The working example

The future of the Welsh Premiership is an intriguing case and it all ultimately lies with the Community Game Board, which is 21 in number, including WRU chairman Rob Butcher, plus other community game representatives, including those who sit on the full WRU Board.

The Premiership lies in the community game because, previously, it was decided that the league was not strong enough to adequately prepare young players for professional rugby. So it was effectively cast aside in favour of regional 'A' teams, which proved to be a complete disaster.

WRU Performance Director Nigel Walker (Huw Evans Picture Agency)

Now Nigel Walker is on the scene as Performance Director and he is an advocate of bringing the Premiership back into the elite performance pathway. To do that, proposals have emerged to cut the team from 12 teams to 10 and ring-fencing the league for around three years.

There would be two teams within the footprint of a regional team, one in north Wales and another team that would be included based on a myriad of factors like population, facilities and performance.

The current level of funding for 12 teams would go to the remaining 10. This, it is believed, would strengthen the league, enabling it to bridge the gap between age-grade international rugby and the professional environment.

Previously, though, it was decided that the league would actually expand to 14, while the clubs' preference is to remain at the current number of 12.

Here we have an example of where the community game is making decisions that will directly impact on the elite side of things. But you could argue this is a problem of the WRU's making when the decision was made to align the Premiership with the Community Game. This, it must be added, pre-dates Walker.

Ultimately, though, it perfectly illustrates the frustrations of some of the pro game administrators.

Attempts to modernise

There is a recognition outside of the WRU and, perhaps even within it, that the governance is in need of modernisation.

In 2018, then-chairman Gareth Davies was at the forefront of this and tried to haul the organisation into a state that was better equipped to deal with the issues within the pro game.

He had limited success in his endeavours - and this is where the real power lies with the community game. Motions from the PRB would likely not be extreme enough to have to go to a vote of all 300-plus member clubs. But Davies was trying to change the constitution of the Union and that required a majority of clubs to get on board at an AGM.

Davies wanted to make key changes to the make-up of the WRU Board which included an independent and appointed chairperson. This individual would have no loyalties to the community game and would also have had a casting vote over a re-jigged Board.

When the cookie crumbled, Davies managed to trim the board from 20 to the 12 members we have today, but that was about it. In the process, the community game had £11.8 million of funding ring-fenced and the clubs voted to oust Davies as chairman at the next opportunity.

This is an example of a decision that required support from the clubs, but resulted in them showing their teeth.

So why are we losing top business people?

In the last 12 months, Welsh rugby has lost two FTSE 100 CEOs. Amanda Blanc, CEO of Aviva, stood down from her role as PRB Chair, which comes with a seat on the WRU Board, remember.

And Andrew Williams, who was the CEO of Halma PLC, recently announced his departure from the role of non-executive director on the board of Cardiff Rugby.

These two developments are concerning. Welsh rugby cannot afford to lose business people of their calibre. Blanc and Williams have been relatively ambiguous in their departure statements but left in no doubt their belief that things have to change.

They took their respective roles in 2019 and will have been alarmed to witness how the clubs resisted Davies' attempts to modernise.

They will also likely have grown frustrated with the regions and WRU ultimately failing to reach any sort of agreement at PRB level, with a plan for the future of Welsh rugby yet to be agreed upon.

The two felt they were unable to instigate change. Top business people do not tend to hang around too long in those environments.

What happens next

There are many who feel the way Welsh rugby is governed needs to change.

The PRB would like to be a decision-making body able to bring about change dynamically and quickly. The community game could have similar powers for itself, with equal representation on the WRU Board and an independent chair with the casting vote.

Equal representation on the union Board for the elite and amateur games would be one step , with non-executive directors and an independent chair potentially having sway in the event of any conflict.

However, in the current structures the PRB is essentially rendered powerless because any decisions require ratification of the WRU Board, on which the amateur game retains the majority say.

The business people who lead the Ospreys, Scarlets, Cardiff and Dragons may well feel frustrated that, if they are able to reach an agreement among themselves - which often proves difficult in itself, it must be emphasised - then why do they need the green light from individuals who do not necessarily have the same level of business expertise as them?

Perhaps it is not difficult to see why individuals become frustrated in these circumstances.

But any change in this direction would require alterations to the constitution of the WRU itself. Former chairman Gareth Davies tried that and look where it got him. Out of a job.

What happened in that instance is an example of the community game wielding its undoubted power.

Does Davies' replacement, Rob Butcher, have the same desire to bring about change? Little appears to suggest so, thus far. In any case, an Extraordinary General Meeting can be called with relative ease and Butcher could receive the same fate as his predecessor were he to threaten the clubs' power base.

The truth of the matter is it is extremely difficult to foresee constitutional change at the WRU coming down the pipe any time soon.

So the reality is that in the short term, representatives from Cardiff, Dragons, Ospreys and Scarlets, and the WRU hierarchy who sit on the PRB simply MUST reach an agreement amongst themselves.

There is a recognition from all sides that they have not always been the best at working together because at a basic level they are all making sure they each get the best deal possible for themselves, which is understandable.

But WalesOnline has also been told that there is finally an acceptance that compromises are necessary. The regions may not each get everything they desire, but the truth is a deal needs to be struck for the good of the wider game.

When a solution is eventually found, it is then up to Steve Phillips and Malcolm Wall to get it signed off by the WRU Board.

The current impasse is good for nobody.

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