The strategy – loudly trumpeted by the WRU as the best way forward, but supported by hardly anyone else in the professional game - has suffered a major setback after the collapse of the proposed Y11 takeover of Cardiff Rugby.
The WRU has conceded in a statement issued on Wednesday that any cut in teams won’t now happen until at least 2028, if it ever does happen.
The four regions are set to remain in place for the foreseeable future and the WRU’s long-term vision has been left in tatters.
The decision by the Malaysian-based sports company Y11 to pull out of a deal to buy Cardiff means departing chair Richard Collier-Keywood and CEO Abi Tierney have been left with egg all over their faces – as well as a difficult task in rationalising the alleged £9m debt mountain at the capital city region owed to the WRU.
There were only two bidders for Cardiff and Collier-Keywood - who is leaving his post under a cloud this summer when he completes his three-year term as chair – ensured one of them was virtually laughed out of the negotiating room.
All hopes were pinned on Y11 rescuing Cardiff and the WRU. Their initial exclusive consulting period was extended, but their deep dive into all things financial at the region has now led them to end all speculation about taking over the region.
They were understood to be particularly alarmed that the figures for match day income at Cardiff simply did not stack up with those that had been presented in talks with the WRU.
Instead, they have reconfirmed their commitment to the region they already own, the Ospreys.
That decision will lead to the Ospreys finally signing the new PRA agreement with the WRU.
That in turn will secure their future for at least two more seasons and should unlock the proposed funding from Swansea Council to transform St Helen’s into a new home for both the Ospreys and Swansea RFC.
WRU CEO Abi Tierney. Pic: Alamy
First it was two, then it was three and now it is going to be four teams through to at least 2028.
A statement from Y11 Sport & Media said: “PRA25 for the Ospreys and top tier rugby in Swansea, partnering with Swansea Council and developing St Helens is the right outcome, whilst continuing to work with the WRU to further build a better pro rugby environment.
“We are grateful to the WRU for their openness and transparency throughout the negotiation period.
“Thank you to the Ospreys supporters for their patience and understanding, we know these have been worrying times for fans.”
The WRU’s “One Wales” vision, first outlined in various forms over recent years, was designed to address long-standing financial losses and a perceived dilution of playing resources across the four regions – Cardiff, Ospreys, Scarlets and Dragons.
The professional game in Wales is losing millions annually, with the governing body itself shouldering significant debt and underwriting the regions through funding agreements.
Central to the latest strategy was the Professional Rugby Agreement (PRA), a six-year deal intended to stabilise finances, introduce stricter budget controls and pave the way for structural reform.
The proposed takeover of Cardiff by Y11 had been seen as a crucial piece of the jigsaw.
Not only would it have removed a major financial burden from the WRU – with Cardiff reportedly carrying debts of around £9m owed to the governing body – it would also have created the conditions for what the WRU hoped would be an easy pathway towards reducing the number of regions.
Instead, firstly legal action taken by Swansea Council to protect the Ospreys, and now Y11’s withdrawal, has blown a hole in those plans.
St. Helen's, Swansea. Pic: Alamy
The WRU’s attempts to streamline professional rugby in Wales to save costs and consolidate talent have always been controversial, but now look to be in complete and utter tatters.
“We know we need to move to three clubs, nothing has changed there, for both financial and performance reasons and so we can invest in the right way in our pathway to ensure the future of the game,” said WRU CEO Tierney.
“But this move brings stability to the system where it is needed and a calmness and assuredness to our plans for the future.
“Y11 presented the best bid for Cardiff Rugby but the WRU has ultimately concluded that it is in the best interests of Welsh rugby for Cardiff Rugby to remain under WRU ownership for now.
“We remain undeterred from our ambition to move to three professional sides, this is necessary for the future of our game.
“We will continue to invest the £28m we have earmarked for our pathways over the next five years, in a phased way, and we retain our ambitions for commercial growth in the professional game.
“I would like to add that we are all very grateful to Y11 for the professionalism and commitment to Welsh rugby they have displayed throughout this process.”
