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The Welsh Rugby Union (WRU) has announced a seismic shift in its professional rugby strategy, abandoning equal funding for its four regions—Cardiff, Dragons, Ospreys, and Scarlets—after Ospreys and Scarlets declined to sign the new Professional Rugby Agreement (PRA25).
The WRU’s One Wales Strategy, unveiled in June 2024, aimed to sustain four evenly funded professional clubs for a competitive and financially viable future. However, only Cardiff, taken over by the WRU in April 2025 after entering temporary administration, and the privately-owned Dragons signed the PRA25 by the May 8, 2025, deadline.
Ospreys, based in Swansea, and Scarlets, from Llanelli, withheld their signatures, demanding assurances that Cardiff’s WRU ownership would not unfairly advantage the capital club or harm independent clubs.
Citing the need to proceed with debt refinancing with NatWest, the WRU issued a two-year notice to terminate the current Professional Rugby Agreement (PRA), set to expire in June 2027. The decision, described as “difficult but necessary,” reflects the WRU’s duty to prioritize the broader performance, financial, and strategic needs of Welsh rugby.
The governing body noted “seismic changes in the rugby landscape” since PRA25 negotiations began, ruling out a return to four evenly funded clubs.
The WRU’s new two-tier funding system will see Cardiff and Dragons receive increased funding, rising to £6.5m in the coming years, while Ospreys and Scarlets remain at the current £4.5m level. Although the WRU has not explicitly confirmed plans to reduce the number of professional teams to three, it has not denied such reports, leaving the future of the four regions uncertain.
The WRU expressed an “open mind to all constructive and realistic proposals” for the path forward beyond June 2027.
WRU chief executive Abi Tierney acknowledged the uncertainty, stating, “We are continuing to talk to all four clubs about what the future will hold. We recognise this will be a time of uncertainty and are committed to treating all the clubs, players, and supporters with respect and fairness throughout this process.”
She emphasized adaptability, saying, “When I announced the headline strategy back in July 2024, I said one thing is for certain, given the challenges facing rugby in Wales and globally, there will be times when we need to adjust our course. We must seize this opportunity.”
Malcolm Wall, chair of the Professional Rugby Board (PRB) and a WRU board member, assured that the next consultation phase would prioritize “the best interests of the whole of Welsh rugby.” Dragons welcomed the PRA25, with a statement noting they signed to “demonstrate our commitment to provide stability and security to Dragons RFC as we continue to develop on and off the field.” Ospreys and Scarlets, meanwhile, are seeking legal advice and preparing a response, expected shortly.
The WRU’s takeover of Cardiff involved absorbing £9m in debts and £780,000 in fees, adding financial strain. The governing body also faces a contractual obligation to field four teams in the United Rugby Championship (URC) and European competitions, with potential £5m penalties for non-compliance. Tierney previously justified the Cardiff takeover as a cost-effective way to maintain four professional sides.
Welsh rugby is reeling from a challenging period, with the national men’s team enduring a second consecutive Six Nations wooden spoon and a record 17 straight Test losses since the 2023 World Cup. None of the regions qualified for the 2024-25 European Champions Cup, highlighting the domestic game’s struggles.
Founded in 1881 by clubs including Swansea, Lampeter, Llandeilo, Cardiff, Newport, Llanelli, Merthyr, Llandovery, Brecon, Pontypool, and Bangor at a meeting in Neath, the WRU has long shaped Welsh rugby. The PRA25 negotiations, initially promising in February 2025, were disrupted by Cardiff’s administration, leading to the current impasse.
The WRU’s announcement places Welsh rugby at a critical juncture, with fans, players, and coaches bracing for potential restructuring. The governing body pledged to devise a new plan “with the best interests of the whole game in Wales at the forefront.” As Ospreys and Scarlets prepare their response, the WRU’s ability to balance financial realities, competitive demands, and regional loyalties will shape the future of professional rugby in Wales.
