The ultimatum was given by Collier-Keywood on Monday night when his executive’s recommendation was put before the board.
Two members of the board asked for more detail on both rival bids, before the executive's proposal was eventually voted through.
Had the threat been carried out it would have plunged Welsh rugby into even deeper chaos, but as it is Collier-Keywood could still be ousted if a vote of no confidence is passed at a planned emergency general meeting of member clubs.
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The board backed the choice of Y11 and rejected the alternative bid fronted by former Cardiff director Martyn Ryan, but the decision has since provoked a storm of protest as well as the threat of legal action.
That was the background against which Collier-Keywood and chief executive Abi Tierney appeared before MPs on Wednesday, defending controversial plans to reduce the professional game to three teams while supporters from across the country warned the proposals risk alienating the fanbase.
Collier-Keywood told the House of Commons Welsh Affairs Committee that he believes he still has the backing of players and supporters as the WRU attempts to push through radical reform.
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Central to those plans is the potential removal of one of Wales’ four professional regions, with the Ospreys now facing an uncertain future.
Tierney suggested that professional rugby in Swansea could still exist if the Ospreys disappear, with fans able to watch a women’s team or part-timers, Swansea RFC.
Giving evidence, Collier-Keywood argued that the governing body had inherited a failing system when he took over and that significant change was unavoidable.
“We recognise change is painful and we went into this understanding that this would be very painful for groups of supporters,” Collier-Keywood said.
“But, unfortunately, the rugby system was broken, the pathways were broken, and we have announced an investment plan of £28m over five years to fix that problem.”
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He reiterated his belief that the current model is financially unsustainable, insisting that three professional teams is the only viable route forward.
Collier-Keywood also told MPs that the WRU is now on a “much stronger economic rock” after refinancing its debts with support from Goldman Sachs and HSBC, following a period in which the union was placed under special financial measures.
However, his assertions were immediately challenged by fan representatives who appeared before the same committee.
Iwan Griffiths, from the Scarlets Supporters Trust, said a poll of their members showed 90% were opposed to the WRU’s proposals.
Daniel Hallett, representing the Dragons Supporters’ Club, said feedback from their own supporters painted a similar picture.
“There is no appetite for a potential merger, there is no appetite for jumping ship to another team who have been historic rivals,” Hallett told MPs.
Those concerns were echoed during a stop-start committee session that was twice suspended due to parliamentary votes.
Despite the strength of feeling around the Ospreys’ future, more than an hour of the hearing passed before the issue was raised directly, prompting frustration among observers.
When questioned, Tierney said the WRU was currently “trying to reach consent” with stakeholders rather than launching a full tender process.
She acknowledged that if agreement could not be reached, a formal tender would follow, a process she said could take up to six months.
Tierney said she understood the depth of feeling in Swansea and beyond.
“I hear passion from all the fans,” she said. “They’re all important and have history. Change is difficult. It’s not going to be easy.”
Pressed on what the loss of a professional team could mean for local communities, Tierney said she “absolutely gets how important rugby is in Swansea”.
She added that, should the Ospreys be removed from the professional tier, the WRU would look to invest in Swansea RFC, the women’s game and other development pathways, while making clear she did not expect supporters to simply switch allegiances.
While Collier-Keywood said the union is working with Y11 on a “different model” for the Swansea-based region, he declined to give further detail.
Richard Collier-Keywood said Y11 “still have a lot of local passion for Swansea”, adding that one of the group’s leaders “comes from Swansea”.
He again stressed his view that Welsh rugby “was broken” and required decisive structural change to secure its future.
