Regions in jeopardy unless WRU deal is signed

The Welsh Rugby Union (WRU) has told Scarlets, Ospreys and Dragons that they have until Thursday to sign a new Professional Rugby Agreement (PRA) or risk a two-year notice period being imposed which could jeopardise the regions' futures.

The WRU has written to the three teams after a meeting with them on Tuesday, with the future of professional rugby in Wales facing major change should the deal be left unsigned.

In February, it was announced the parties had agreed in principle to a five-year deal - but that was before Cardiff went into temporary administration and were taken over by the WRU.

Scarlets, Ospreys and Dragons had concerns about what Cardiff's change in ownership would mean and the WRU initially gave them until 15 April to confirm their intention to sign up to the new proposal.

While Cardiff will sign the deal, which includes increased funding and a refinancing of each organisation's debt, the WRU has now given the other three sides an 8 May deadline to sign the new PRA.

The proposed agreement is meant to form a key component of the WRU's long-term plan, which it has called the 'One Wales' strategy.

BBC Sport Wales understands that if the three independent regions fail to sign, the WRU will consider options that could lead to lasting structural changes in Welsh professional rugby.

One possible outcome could see the number of Welsh professional teams reduced, despite chief executive Abi Tierney repeatedly expressing her commitment to retaining all four regions.

The WRU holds the licences for the Welsh sides competing in the United Rugby Championship (URC) and European competitions.

The union has the authority to revoke those licences after serving a two-year notice period, though they would be heavily penalised financially if they did not continue to provide four sides for the respective competitions.

The independent clubs have voiced concerns that, under the proposed agreement, there would be no clear limit on the level of investment the WRU could allocate to Cardiff, potentially placing the other teams at a financial disadvantage.

The WRU's acquisition of the business and assets of Cardiff cost £780,000, with the national governing body also committed to putting about £1.2m into the capital-city region until June 2026, meaning a total outlay of about £2m.

WRU chair Richard Collier-Keywood last month insisted it was the WRU's intention "to provide the other three professional clubs with similar debt relief".

The union has indicated Cardiff will be on the same terms as the other clubs under the new PRA and that the WRU will create a subsidiary to run the Arms Park outfit on an independent basis.

The WRU assurances have yet to fully appease the Scarlets, Ospreys and Dragons with Thursday's deadline looming.

WRU chief executive Abi Tierney said in late April that there would be no specific deadline for Wales' professional clubs to sign a new agreement but added that they "need to move" quickly.

Collier-Keywood had previously given Scarlets, Ospreys and Dragons a deadline of 15 April to confirm their intention to sign the deal.

That deadline passed as negotiations continued, with Tierney acknowledging that Dragons, Ospreys and Scarlets had "some very valid questions" about what the union taking ownership of Cardiff "means for the PRA and what it means to the other three clubs".

"We are getting there in terms of answering the questions they've got and we will continue to work on that. But we remain very positive that we will get there," she said last month.