Wales' four professional sides and the Welsh Rugby Union have finally signed off on a new long-term funding deal
The six-year financial framework had been verbally agreed at the start of December, but nothing had been signed until now. Since that verbal agreement, financial uncertainty has continued to plague Welsh rugby - with the threat of strike action for the Six Nations clash with England narrowly averted but a large exodus of players still expected this summer.
That strike action was largely over the standard fixed variable contracts being offered to players which would have seen only 80% of their wages guaranteed - with the rest made up of bonuses deemed unrealistic by many players. As such, two different kinds of contracts will now be offered.
All parties have been aware that the need for Welsh rugby to move away from the financial insecurities of an annual funding model and provide some form of security.
Speaking about the announcement of the deal that will be in effect until 2029, Professional Rugby Board chair Malcolm Wall said: "It is no exaggeration to say a great deal of work, time and effort has gone into establishing an agreement all parties can be happy with and which is designed to achieve the very best results for Welsh professional rugby from the resources available to us.
"The Directors of each of our professional sides, the executive staff at the WRU, my fellow Independent Non-Executive Director Marianne Økland and the Rugby Management Board all deserve credit for enabling Welsh rugby to reach this critically important moment.
"We also can’t let this moment pass without marking the important role our sadly departed colleague and friend Peter Thomas CBE played in sustaining professional rugby in the Welsh capital during his lifetime and in helping us reach this significant point in our history."
The statement from the WRU indicated that homegrown player development will be a key objective for all parties, with the new deal "designed to promote success for both the professional club game and the Welsh international side". From the 2024/25 season, playing budgets will be reduced to £4.5million - making it significantly harder to retain established names.
The key features of the new Professional Rugby Agreement will include:
- Salary caps to be introduced from season 2023/24
- Two kinds of contracts will be offered namely fixed contracts and those with both a fixed and variable element, where the variable element is linked to appearances and performances
- All contracts will be held by a central clearing house to monitor spend, ensure contract compliance and effect a new player-loan system across clubs
- Contracts for players of national interest will be agreed by the club and the WRU Performance Director
- The clubs are committed to a minimum spend on player academies
- All clubs are subject to regular audits of squad expenditures, contracts, business plans and academy performance
- The clubs are committed to centralising aspects of their commercial operations, with work already in process in this area
WRU CEO Nigel Walker said: "Our objective has been to achieve a sustainable future for our four professional sides and for Wales and credit must go to all involved now this has been achieved.
"The cooperation between the WRU, our professional clubs and the WRPA has been a vitally important part of this process and we will continue to work together for the future benefit of Welsh rugby.
"We now have a structure which will provide a backdrop of stability from which we can build."
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