The Welsh Rugby Union (WRU) have confirmed the Scarlets and Ospreys are still yet to sign up to the new Professional Rugby Agreement (PRA25), and have now issued a two-year notice on the current deal.
As a result, it seems likely that the governing body will cut one of the four Welsh regions, despite CEO Abi Tierney insisting the outlook was to maintain four professional sides in Wales.
Cardiff, who are under the control of the WRU, and the Dragons have both signed up to the new deal, which will see them receive an increased £6.5 million a year in central funding from next season, while the Scarlets and Ospreys will only receive £4.5 million.
This comes after the two Western clubs issued a powerful statement earlier this month asking for clarity regarding the WRU’s takeover of Cardiff.
Welsh rugby on brink of civil war as two clubs miss latest PRA25 deadline
In a statement, WRU CEO Tierney said: “We are continuing to talk to all four clubs about what the future will hold.
“We recognise this will be time of uncertainty and are committed to treating all the clubs, players, and supporters with respect and fairness throughout this process.
“We acknowledge the continued commitment of each club to Welsh rugby and will formulate a new plan with the best interests of the whole game in Wales at the forefront of our thinking.
“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.
“Our continued aim is to build a resilient and world-class structure that will support Welsh rugby’s next generation and beyond.”
Professional Rugby Board chair Malcolm Wall added: “The next phase of consultation, as always, will be conducted with the best interests of the whole of Welsh rugby at its heart.”
The WRU have also confirmed they will still work closely with the four professional clubs to agree a way forward post-July 2027 when the two-year notice on the current agreement expires, but detailed the system would not return to the model of four evenly funded professional clubs.
The PRA25 was created to ensure a more financially sustainable future for the Welsh regions, who have struggled to compete at Europe’s top-table.
Of the four Welsh sides in the United Rugby Championship, only the Scarlets reached the top eight while the Dragons finished rock bottom with just one win from their 18 league matches.