Welsh regions agree new financial deal in principle with WRU

Welsh rugby is closing in on a long-awaited new funding agreement that will "safeguard the future" of the professional game in the country.

After almost a year of wrangling, the Welsh Rugby Union (WRU) and its four regional sides have confirmed they have agreed in principle a five-year deal.

The Professional Rugby Agreement (PRA) not only appears to ensure maintaining four regions but also extra funding for Cardiff, Dragons, Ospreys and Scarlets.

But the boost to budgets will come in return for greater influence from the governing body at the four teams.

"We are at a crucial stage in completing a deal which will not only safeguard the future of the professional game in Wales in the short term but will also directly enable long term success," said Malcom Wall, who chairs the Professional Rugby Board (PRB) made up of representatives of the union and the four sides.

The agreement had been identified as a key priority by WRU chief executive Abi Tiereny, but has been delayed by months of negotiations.

Sticking points are thought to have included the extent of the WRU's say on national players, including when and potentially where they play.

But a breakthrough has now been made, which will see an incremental increase on the current cash provided to the regions by the union.

The fresh agreement replaces the previous six-year deal signed in 2023, coming amid fears Wales' professional sides would go bust.

It saw the introduction of salary caps with budgets slashed from £7.2m to the current £4.5m.

Those are now set to be boosted – albeit incrementally – if regional boards vote through the proposals agreed by the PRB.

Full details have not been disclosed but it has been previously reported the WRU would wipe some of the regions' debts to the governing body in exchange for greater control, and even a non-equity stake.

But there will be an expectancy for the regions to financially get their houses in order.

Speaking at a fans' forum on Thursday night, Dragons chair David Wright suggested the deal would see the regions ensuring their kept their finances in the black each season, with owners required to cover any shortfalls.

But a statement confirming the end of the impasse did state that the WRU would be more hands on with development, while a 'shared services' scheme would allow a pooling of resources.

"The settlement with the clubs is part of a whole game approach which is already seeing advancing improvements to the pathways which support senior men's rugby in Wales," added Wall.

"This includes the installation of new academy licences at professional club level, the raising of standards in the new Super Rygbi Cymru competition, which sits underneath the professional teams, and greater collaboration across the game with national coaches sharing ideas and strategy and staging skills clinics for new and emerging talent."