The agreement (PRA25) had been signed by Dragons and Cardiff, who were last month taken over by the WRU having served formal notification that they intended to enter administration.
Last week Ospreys and Scarlets said they had asked the WRU for assurances that the takeover “will not disproportionally benefit Cardiff and disadvantage the independent clubs”, adding: “Until we have greater clarity, we are currently unable to sign the PRA25.”
On Sunday, the WRU released a statement saying that with those clubs not signing by the deadline set, it had therefore taken the “difficult but necessary decision to issue the formal two-year notice to terminate the current PRA agreement in order, in particular, to proceed with its debt refinancing.”
The statement continued: “The One Wales Strategy (unveiled in June last year) was designed to create a more aligned, financially sustainable and competitive future for professional rugby across Wales.
“The WRU’s preference from the outset was to maintain four professional clubs (on equal funding) within this framework. Everyone worked hard to achieve that. However, agreement on the new PRA25 could not be reached with two of the professional clubs.
“This is not a decision that was taken lightly, however given the WRU’s duties to the game in Wales as a whole, the broader performance, financial and strategic needs of the game must take precedence.
“In practical terms, the WRU will work closely with all four professional clubs to agree the way forward beyond June 2027, with an open mind to all constructive and realistic proposals.
“That said, given the seismic changes in the rugby landscape since we first started negotiating PRA25, the system will not return to the model of four evenly funded clubs.”
The announcement comes after reports that one of the four regional teams would be cut under the new plans, something neither confirmed nor denied by the WRU.
WRU chief executive Abi Tierney said:
“We are continuing to talk to all four clubs about what the future will hold.
“We recognise this will be time of uncertainty and are committed to treating all the clubs, players, and supporters with respect and fairness throughout this process.
“We acknowledge the continued commitment of each club to Welsh rugby and will formulate a new plan with the best interests of the whole game in Wales at the forefront of our thinking.
“When I announced the headline strategy back in July 2024, I said one thing is for certain, given the challenges facing rugby in Wales and globally, there will be times when we need to adjust our course. We must seize this opportunity.”
Professional Rugby Board chair Malcolm Wall added:
“The next phase of consultation, as always, will be conducted with the best interests of the whole of Welsh rugby at its heart.”
This afternoon the Ospreys Supporters Club responded saying:
“The statement leaked last night and published by the WRU today, issuing the formal two-year notice to terminate the current PRA agreement, is a complete contradiction to what the WRU have recently said publicly and in a meeting attended by the OSC and other supporters’ organisations on 30th April.
“Giving notice on the current PRA revokes a commitment to a collaborative approach and vision shared between the clubs and the WRU, exhibiting a lack of respect and what appears to be an unreasonable attempt to publicly control the narrative forcefully, rather than address reasonable concerns in a constructive way.
“We fully understand and back the Ospreys position in terms of wanting guarantees of fair and just payments for for sustainable development of players for the national team.
“Based on recent issues of due diligence, which have led to the issues around Cardiff Rugby, it is essential that sufficient time and effort goes into ensuring signing up to the 2025 PRA doesn’t lead to the WRU prioritising any single club to the detriment of one of the other clubs who have remained financially solvent since inception.
“Seeing the looming for a potential two-tier PRA that disadvantages Wales’ most successful professional team is unjust and goes against any messages, trust, and transparency that have been coming from the WRU.
“We can assure that we have spoken to the Ospreys and we are aligned in wanting fair and just negotiations with the WRU, allowing the very reasonable guarantees that the Ospreys are seeking before agreeing to signing up to the 2025 PRA.”
With regions travelling back from South Africa after featuring in United Rugby Championship action, further statements from Ospreys and Scarlets are likely to be released later today.
[Lead image: Welsh Rugby Union]
