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Wales Online
Wales Online
Sport
Mark Orders

WRU and Welsh regions £6 million apart after months of crisis talks

The future of professional rugby in Wales remains uncertain, with the WRU and regions yet to reach agreement on funding months into ongoing crisis talks.

While hopes remain a breakthrough could come soon, discussions have seen a huge £6 million gulf emerge between what the governing body say they can afford and what the pro sides feel they need to be properly competitive.

It was hoped the issue would be sorted out by the end of last month amid mounting concerns, but Cardiff, Dragons, Ospreys and Scarlets remain unsure what their payments from the Welsh Rugby Union will be for the coming season.

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The lack of a headline funding figure has militated against any agreement on a new funding model going forward being nailed down over the summer.

A source close to one of the professional teams reckoned the situation had become exasperating at points, although talks are ongoing and a breakthrough could see things move relatively quickly. Speaking on condition of anonymity, the individual said: “It’s not a great situation. The proposed payment on the table from the union is in the region of £23 million, but the professional sides want closer to £29 million. That isn’t being unreasonable on their part."

“People criticise the Welsh teams for not doing better in Europe and in the United Rugby Championship, but it’s hard to be competitive with £23 million shared out between four professional operations.

“There is a considerable gap between what the union want to pay and what the teams feel is an acceptable figure. The bottom line is we are saying: ‘What’s on the table isn’t enough.’ All this should have been sorted by July 31. But it hasn’t been and I don’t know where it will end up.

“It’s beyond frustrating because it’s the same story year after year.

“Last year, the community game had more than £11 million all told and we had £750,000 each as clubs. It’s a joke. The union also borrowed money and lent it on to us instead of giving it to us.

“Our balance sheets are not strong enough to take it. They should have taken out the money and given it to us. After all, it was our players who were used to win the Six Nations that year.

“They’ve given us this figure and are saying ‘that’s all we have’, but what about the Six Nations money from CVC? The figure we are being offered isn’t big enough and we don’t know our budgets for the coming season.”

There had been talk of a new funding model being brought in after the leak of the Oakwell Report into the financial health of Welsh rugby, with the idea of shedding a region having been kicked out.

Progress has been slow on that front but more meetings are being held with the aim remaining to have an agreement in place before the season starts next month. The disparity between the different parties around the headline funding figure has been a huge obstacle, with a source suggesting it has been hard to get into the detail of what a new funding model might look like with that £6 million difference in expectations.

"Hopefully, there'll be a breakthrough at meetings that are taking place," the source added.

The WRU have previously said there's is a long-term plan being discussed for the game in Wales at the top end, though they haven't fully revealed what it involves or when it would be completed and implemented, with union chief Steve Phillips saying the Professional Rugby Game Board, made up of representatives from the union and the pro teams, would oversee such matters.

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