The Welsh Rugby Union has told clubs it plans to see through controversial proposals to cut the number of professional clubs from four to three.
At this evening’s extraordinary general meeting (EGM) the WRU insisted it will not deviate from its plan and that Richard Collier-Keywood’s decision to step down as chair in July will have no impact on the decision to go down to three clubs.
WRU CEO Abi Tierney revealed that the only remaining decision was which west Wales team would be cut, or whether there would be a merger between the Ospreys and Scarlets, while a new entity could also be created.
The Central Glamorgan Rugby Union (CGRU) initially succeeded in getting the required 10% of backing from Welsh clubs to call the EGM before withdrawing support.
It proposed three motions, including a vote of no-confidence in WRU chair Collier-Keywood.
But after Collier-Keywood announced he would stand down in July they withdrew their support for the motions.
However, the EGM still had to take place due to company law, and none of the 124 clubs in attendance objected to the requisition of the motions.
What followed was the WRU executive outlining why radical change to the game in Wales is necessary.
The WRU announced it would go to market in May, using an external search firm to replace Collier-Keywood as chair, with an appointment made in the summer.
Additionally, the same process will find a permanent replacement for Wall as PRB chair while six new members were added to the WRU council.
Despite huge resistance to its plans to cut the number of teams, the WRU explained why it felt this needed to happen.
The WRU insists there needs to be far greater alignment in the system and a concentration of talent to improve standards. The governing body also views the benefactor model as no longer sustainable in perpetuity.
They insist a new refinancing deal with Goldman Sachs and Natwest means they can invest their earnings back into the game, while their borrowing capacity is greater.
But despite turning over £100m, they spend a significant amount running the Principality Stadium and the Parkgate Hotel, which is now profitable. They claim the comparison to Ireland is unfair because the IRFU does not have to pay as much for stadium costs.
Collier-Keywood, who will be replaced in the summer, used his departing speech to warn about the time spent during his tenure dealing with disputes with the regional sides.
He revealed he spent most of his time in disputes with the four professional clubs and that there was too much friction in the system.
Tierney outlined the huge financial challenges facing rugby globally. She believes if the WRU does not invest significantly into the pathway, the game in Wales will continue to go backwards.
After a question from former Principality COO Rob Regan, a vocal critic of the WRU’s plan, Tierney was asked if she could admit mistakes were made.
Tierney responded that they took too long to get PRA 25 over the line and they should have drawn a line on it sooner. Collier-Keywood agreed with Tierney and said Cardiff entering administration in April 2025 was the straw that broke the camel’s back.
They said it made them realise the benefactor model was no longer sustainable for Welsh rugby.
She also confirmed that ticket sales for the autumn and Six Nations are approximately £6m below budget.
A member of the Central Glamorgan Rugby Union took the floor and labelled the WRU’s lack of a plan B a “dereliction of duty that could destroy Welsh rugby.”
But there was also a statement from a club official who insists a large number of clubs support the WRU.