Welsh Rugby Union (WRU) chief executive Abi Tierney has defended the organisation’s proposed restructuring of the professional game, insisting that sporting priorities came before financial considerations.

The WRU’s preferred outcome would see the number of professional regions reduced from four to two, with each equally funded.

Speaking after the WRU revealed plans for the biggest shake-up to Welsh rugby in two decades, Tierney said the aim was to build a sustainable high-performance system while ensuring financial viability.

Tierney said the modelling suggests the new regions would be profit-making “very quickly” under the plans, which would allow them to repay the significant debts built up during the Covid-19 pandemic, making them an “investable proposition”.

Speaking to Sportin Wales, Tierney admitted the sporting implications were the first priority over the financial benefits.

She said: “The first question was: what is going to create the most sustainable high-performance system? And then the second question is: what are the financial choices we can make in that.

“We don’t have an infinite amount of finances, so we’ve got to prioritise and make choices. Absolutely, at the forefront was the high performance.

“You could build the best high-performance system from a blank sheet of paper, [but you need to] bear in mind the financial wherewithal to do that [which] is also really critical.”

One of the key proposals put forward by Tierney involves a new funding model designed to relieve clubs of the heavy burden of rugby-related costs.

“Rugby costs are one of the biggest costs for the clubs, and actually one of the reasons why they struggle to be profitable.

“And therefore we believe that if we fund all of the rugby costs, then the clubs are there to invest in fan experience, commercial ticketing, merchandise, sponsorship. They can really put their entrepreneurial spirit, ideas, innovation into that. And that’s a really good mix,” she said.

Tierney pointed to international examples of similar structures, adding that consultation would determine the right balance for Wales.

“That’s what the New Zealand model is, to give one example, but there’s a whole spectrum there. And one of the things we want to do through the consultation is work out what’s the sweet spot along that for Welsh rugby.

“Because we’ve got benefactors and investors currently in the system that we really value. We want them to be part of the journey going forward. We want to hear from them about what their red lines are in that. This is a straw man for them to be able to talk to us about.”

Asked whether the eventual goal was for the new regional entities to become profit-making, Tierney was confident the model would deliver.

“Our modelling suggests that they would be profit-making very quickly if we adopted this model, and that would allow them to repay the significant debts that they had to build up during Covid.

“It will put them as real investable propositions. That would happen quickly, and we’re not looking to make money from this. We’re looking to invest in rugby so we get a high-performing national team, and we really want these to be successful clubs.”

Tierney also addressed her repeated use of the word “hope” in presenting the WRU’s vision, saying it was about offering reassurance that Welsh rugby has a clear path forward.

“I want to give people hope that there is a brighter future and that we’ve got a plan and we’ve got a way forward.
“We’ve got six weeks of consultation before we can formalise that plan. But when I read the deck and I take that step into the future, rather than thinking about all the difficult stuff that we’ve got to get through first, I get excited by it.

“That’s what I want the Welsh rugby fans and stakeholders to do as well. And so, it’s hoped that we’re going to be a thriving, winning, successful rugby nation again. But it’s underpinned by a really strong business case and a really strong high-performance system.”

The WRU is currently in a six-week consultation period on its proposals, which could lead to a significant restructuring of regional rugby in Wales, with financial and sporting sustainability at the core. The outcome of the consultation is expected to be revealed in October.

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