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Wales rugby plunged into another crisis

The four regional clubs and the Union cannot agree on a new Participation Agreement

Osea Kolinisau of The Dragons fends off a challenge during the World Club 10s match against Cardiff Blues, two clubs at war with the Welsh Rugby Union. Photo by Suhaimi Abdullah/Getty Images
Osea Kolinisau of The Dragons fends off a challenge during the World Club 10s match against Cardiff Blues, two clubs at war with the Welsh Rugby Union. Photo by Suhaimi Abdullah/Getty Images
Fri Jul 11 2014 - 17:35

Welsh rugby has again been plunged into crisis after Regional Rugby Wales (RRW) announced the participation agreement proposed by the Welsh Rugby Union was "completely unacceptable."

The four regions which form RRW, Cardiff, Newport, Swansea and Llanelli, released a statement claiming every time progress was made “two steps back” followed.

Following months of talks aimed at reaching a new Participation Agreement to underpin the elite game RRW say they are preparing for life without any form of “WRU support or involvement”.

Under the old Agreement, the four regions received £6.7m (€8.43) from central funds in return for international player release, observing overseas quotas and other issues such as the fourth Autumn International match.

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Their argument has been that the funding level has not kept pace with spiraling player wages and has left the clubs unable to compete with Europe’s top teams.

The peace deal which has been under discussion for some time is believed to involve an additional £2m (€2.52) being made available for the central contracting of players in a bid to halt the exodus to France and England.

With those star names off their wage bill, the regions would have an additional £500,000 (€629,000) or so a year to spend on strengthening their squad.

However, with no resolution, the future of the regions and, potentially, professional rugby in Wales is in doubt.

Wales captain Sam Warburton signed a central contract with the WRU which, at present, leaves him without a team to play for next season.

A RRW statement read: “Sadly, the regions regret to confirm that despite an indescribably tortuous process of endless telephone calls and meetings since January 6, the control, commercial and financial conditions that are being demanded of them under drafts of the proposed new service agreement would be completely unacceptable for any responsible independent business to enter into and expose itself to.

“However, after many months of working hard to try to progress a new agreement, it is with heavy hearts that the boards of all four regions must now urgently consider the stark practical consequences of operating within a business model that does not include any form of agreement with the WRU outside IRB regulations and no WRU support or involvement in the development of professional regional rugby.”

RRW stated that the public comments made by leading figures in the WRU were not matched by actions in negotiations.