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Wales Online
Wales Online
Sport
Steffan Thomas

Welsh rugby's almighty mess, the immoral treatment of players and the uncomfortable truths

Welsh rugby has never been short of drama but you'd be hard pressed to think of a more dramatic period than this one.

The game in Wales is in a state of crisis, with no end in sight to the stand-off between the Welsh Rugby Union and its four professional regions. With a freeze on the regions offering firm contracts, the players have threatened strike action, putting Wales' Six Nations clash with England next weekend in doubt.

So, how did we get to this point and what is likely to happen next? Rugby correspondent Steffan Thomas runs the rule over Welsh rugby's perilous predicament:

Why is Welsh rugby in this situation and what is the delay?

The Professional Rugby Agreement (PRA) has been under review and the Professional Rugby Board, which runs the pro game in Wales, has been busy thrashing out a new six-year financial framework to move the game forward. Normally such a deal wouldn't take as long to complete in most sectors, but both the WRU and its four professional regions have clashed over a number of key points.

READ MORE: English team could join WRU, merge with Welsh region and play in London under radical proposal

The main disagreement has centred on the WRU's insisting the regional benefactors sign personal guarantor forms to cover the deficits not just of the regions but also when the WRU does not achieve its revenue targets.

Back in 2018 in what was called Project Reset, the then WRU chief executive Martyn Phillips wanted less of a reliance on benefactors but his successor Steve Phillips insisted on the likes of Peter Thomas (Cardiff) and Rob Davies (Ospreys) returning to cover not only the deficits at their respective sides but also any shortfall in WRU income into the professional game.

The announcement that a verbal agreement had been reached came just before Christmas, while a non-binding heads of terms were signed in January. This latter document is a precursor to a main contract and sets out in summary what areas have been broadly agreed upon.

But in the meantime, Phillips resigned as chief executive after the WRU was accused of harbouring a culture of institutional misogyny and sexism.

Despite heads of terms having been signed, the regions have not received a long-form agreement, and therefore have nothing to sign. One high-ranking Welsh rugby figure told WalesOnline the WRU's approach has been "hyper-conservative".

Without a formal contract, the regions have been unable to offer players concrete deals since they could risk becoming insolvent if the final agreement changed. The effect on the players has been extremely damaging, with a freeze on recruitment and retainment in place.

Since the new year, regions have been permitted to discuss conditional contract offers for players, but are not able to sign a legal contract until a deal is completed at Professional Rugby Board level.

Why are the players threatening strike action?

In your average run-of-the-mill season, the majority of out-of-contract players will have secured their futures by the month of January, but due to the freeze on recruitment and retention this isn't the case.

A large number of players will see their contracts expire at the end of the current season, and are unsure where they will be playing their rugby next term. With a Rugby World Cup on the horizon, the uncertainty is having a crippling effect on the game in Wales.

On Tuesday, Cardiff and Wales centre Uilisi Halaholo posted on Twitter: "Must be nice knowing you can still provide for your kids in about four months. Especially when you get injured putting your body on the line for your club. Now you got less chance of trying to get a contract somewhere to provide for your family because of injury. Mental health is real. Stay strong."

One Six Nations squad player also admitted to the Daily Mail that the current uncertainty has had such a profound effect on his mental health it has led to him using antidepressants.

The players want an end to the contract freeze, a change to the fixed variable contracts being suggested, and the WRU's 60-cap law to be scrapped. Currently, Welsh men's players with fewer than 60 caps cannot ply their club rugby outside Wales and remain eligible for Test selection. Scrapping the controversial law would allow players to earn more playing for clubs outside Wales while continuing their international careers.

The way players have been treated so far is immoral, with many of them unsure what their income will look like in just a few months.

What do the potential new player contracts look like?

The players are unhappy with the fixed variable element of any new contract they would sign with a Welsh region.

Salaries are expected to plummet in Wales over the next couple of seasons, with a salary cap expected to be in the £4.5million mark per region. The PRB say a salary cap for the 2024/25 season will be in line with most competitors, while a cap for 2023/24 will be higher to honour existing contracts.

In England the average wage of a player is £160,000, while in Wales it is expected to be £100,00 next season with the maximum wage £278,000. Players would be banded into five tiers, with top-ups for things like appearances and win bonuses.

Many players are concerned at the likely scenario of the regions being unable to compete next season, meaning they will be hit hard in the pocket.

Can Welsh rugby really afford four regions?

The simplest answer is Welsh rugby is financially unsustainable and without a major injection of cash the regions have to make significant cuts to ensure their survival.

Cutting or merging regions has been mooted for a number of years, but despite coming close on more than one occasion, it has never become a reality. While all four regions would deny this next claim, the stark reality is one is likely to go over the next two seasons, if not a lot sooner.

The major criticism of the WRU under its recently departed CEO Steve Phillips was there was a general lack investment, with all the risk thrown onto the regions and other areas of Welsh rugby.

While the coronavirus pandemic hit rugby hard, other unions took on the risk themselves but the WRU negotiated a £20m CBILS loan for the regions which the teams will have to pay back over 20 years. The CBILS loan was taken out as a result of the WRU not paying for player access in 2020. After originally agreeing to give the regions £23.5m, they ended up with a mere £3m between them and a significant loan to pay back.

Couple this with the fact benefactors will have to underwrite any losses and you can understand why they are annoyed.

Also, the new agreement is dependent on the WRU selling the Dragons.

There is also an argument surrounding the soon-to-be defunct National Squad 38, which sees the WRU providing a payment to cover 80% of a player's wages if they are in Wales' elite 38-player cohort.

The argument is once the WRU set the top level of wages, which is in the region of £400,000, the game lost control of player salaries. This inflated the wages of players across the game in Wales.

Following Project Reset and prior to the pandemic, the regions were broadly breaking even, but given their commitments to repay loans along with reduced payments from the WRU they have been spending more than the game is generating.

One complication to dropping a side would be a potential breach of contract for the WRU, with the United Rugby Championship and various broadcasters along with CVC all expecting Wales to field four regions.

English Championship side Ealing Trailfinders have been exploring the possibility of leaving the Rugby Football Union and joining the WRU in order to enter the URC, which could be a way around this given they would allegedly receive far less money than the remaining three regions.

When you consider the financial challenges facing the regions, there is a fair chance Welsh rugby will drop a side in the near future.

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