The Welsh Rugby Union (WRU) has confirmed that Scarlets and Ospreys failed to sign the new Professional Rugby Agreement (PRA) before the deadline.

The PRA25 had only been signed by Cardiff – now under WRU ownership following their takeover last month – until Dragons reportedly signed the deal just before the deadline set.

Ospreys and Scarlets, though, did not, causing the WRU to issue an ultimatum: sign the PRA or risk having a two-year notice served on their licence to play in the United Rugby Championship and EPCR European competitions.

With both clubs reportedly concerned about the level of influence that the WRU now has over Cardiff – something that has not, in their opinion, been fully outlined in the PRA.

The whole issue, along with reports that the WRU are for the first time pursuing the potential of removing one of the four regions, has restarted the row in Welsh rugby circles.

Let’s work out how this all started, and where it may end.

WRU announce ‘One Wales’ strategy including new PRA

On April 10th, the Welsh Rugby Union announced their ‘One Wales’ strategy – a plan designed to lift Welsh rugby at all levels back to its former highs.

Announced by WRU chief executive Abi Tierney, the plan is supposed to save the Union £5million annually with a ‘simplified management structure.’

“Everything we are doing is to improve rugby in Wales for everyone,” Tierney said at the time.

“Last summer we confirmed our strategic trajectory, where we intend to be by 2029, and today we are giving further details of how we are going to get there.

“The world game may have turned professional in 1995 but 2025 will be the moment we remember Welsh rugby completed this transformation, into a fully functional, fit-for-purpose, professional organisation.”

The central issue inside the ‘One Wales’ campaign was that the WRU were yet to convince the four Welsh regions to sign the new PRA25 – which, among others things, sets the playing budgets for the sides.

With Cardiff going into administration – more on that soon – the Union already had one team automatically onboard.

Cardiff takeover creates a wrinkle

At almost the same time as the WRU’s strategy was publicised, Cardiff Rugby announced the club was going into administration due to their now former ownership failing to met certain criteria set out in their takeover in January 2023.

With the risk of potentially it’s capital club ceasing to exist, the Union stepped in just days later to takeover the ‘short-term’ running of the team, including it’s debts (of which a lot were owed to the Union anyway).

With the other regions still to sign the PRA, this seismic change in the ownership landscape put the remaining teams on red alert for what has been described as a ‘Leinster bias’. It is believed in some circles that the WRU would increase the budget of Cardiff above that of the other three, causing an imbalance on and off the pitch.

WRU set a deadline

With the clubs failing to sign the deal in the weeks following the PRA announcement, the WRU set a deadline of the 9th of May.

Dragons, who were also owned by the WRU between 2017 and 2023 but who are now under private control, signed the PRA. Ospreys and Scarlets did not.

The two west Walian clubs, weary of the changes since the deal was put on the table, asked the WRU for more clarity on its future relationship with Cardiff before signing.

The WRU, in order to convince Ospreys and Scarlets to agree to the PRA, warned the teams that if they failed to sign, the Union would issue a two-year notice on the clubs.

In simple terms, this is a 24-month warning before the termination of the current PRA, which grants the regions licences to play in professional rugby competitions like the URC and EPCR tournaments.

Then the fire really started.

On the 17th of May, WalesOnline ran an exclusive suggesting that the Welsh Rugby Union were exploring reducing the number of regions to three.

This course of action has been touted for a while, with the logic being that there is not enough money or talent in Welsh rugby to sustain four teams. The WRU, up until this point, had always denied considering this idea, with Abi Tierney specifically suggesting that removing a region would actually cost the Union – and by extension the other teams – rather than free up more money.

WRU confirm Two-year Notices

In the hours after the reports of a region being cut, the WRU released a statement confirming that it had sent formal notice to Scarlets and Ospreys.

“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,” reads the statement.

“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 PRA 2025, the system will not return to the model of four evenly funded clubs.”

Left open in the WRU’s statement was the prospect of the regions no longer being equally funded. With Tierney suggesting that Welsh rugby needs to have an “open mind to all constructive and realistic proposals on the way forward”, the future seems uncertain.

Scarlets and Ospreys respond

The next chapter in this saga came on Sunday afternoon, as Ospreys and Scarlets released a joint statement accusing the WRU of a U-turn regarding the two-tier funding system.

The statement read: “This U-turn has now created more destabilising and debilitating uncertainty in our game, with pertinent questions being asked by stakeholders across our clubs and within our communities regarding the future framework and landscape for professional rugby in Wales.

“The very foundations both the ‘One Wales’ strategy and new PRA (2025) are based upon have now changed dramatically and without full consultation.”

It ends with an urge to the WRU to provide “more clarity and detail” on the decision.

“We need a unifying position and coherent strategy that allows us to continue to compete and grow as professional clubs in Wales,” it continued.

“As professional clubs, we share the same passion, focus and hope for a better and more sustainable future for our game in Wales, which has been impacted significantly in recent years.”

In contrast, the Dragons welcomed the WRU announcement saying they are delighted to have signed a deal which “provides the club with three years of agreed fixed funding.”

A Dragons statement read: “We did so to demonstrate our commitment to provide stability and security to Dragons RFC as we continue to develop on and off the field.

“As demonstrated by signing the agreement, our owners are committed to the long-term future of professional rugby and the financial stability of Dragons RFC.”

What’s Next?

It is not lost on many throughout this crisis that Ospreys and Scarlets are major rivals – perhaps the strongest amongst the four regions. But in this matter, they are aligned.

With no actual change in teams coming until June 2027 – when the current PRA expires – the WRU has a contractual commitment to provide four sides for the URC and European commitments and will face financial penalties of around £5m if that is not fulfilled.

One can foresee the regions and the Union having to return to the negotiating table to establish what this two tier system will look like, the potential of cutting a region, and the future of professional rugby in Wales.

With so much uncertainty off the field, the fact of Scarlets qualification to the URC play-offs – coupled with the renewal in form of Ospreys and Cardiff in 2025 – is a testament to the resilience of the regions.

They will need resilience in spades in the coming weeks and months.

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