Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Wales Online
Wales Online
Sport
Steffan Thomas

Welsh rugby's crisis explained and the key questions now as Steve Phillips stands on the brink

Never has there been such a harrowing week for Welsh rugby as the one which is about to come to an end.

Allegations of bullying, sexism and racism within the Welsh Rugby Union have raised serious questions about the long-term future of the game in this country.

The position of WRU chief executive Steve Phillips is now in serious doubt given the pressure which is being applied on him from a number of different angles.

WalesOnline looks at the key issues, the questions which still need to be answered and what is likely to happen next:

SIGN UP: Get the latest exclusive stories and breaking rugby headlines sent straight to your inbox for free with our daily newsletter

The claims and the WRU's initial defence

By now the multiple claims have been extensively covered, with a focal point of the bombshell BBC investigation being the testimony of former WRU general manager of women's rugby Charlotte Wathan. The appalling nature of a male colleague's alleged comment that he wanted to rape her, the fact he remains employed at the union and Ms Wathan's assertion that neither he nor other key witnesses were interviewed as part of an investigation into her claims sparked outrage.

The WRU's initial comments in the aftermath of the programme sought to defend their handling of individual issues raised before the more contrite tone struck later in the week when apologies were issued and a review of procedures was promised.

The union said it had hired an external legal expert to probe Ms Wathan's grievance and that it found the claims to be unsubstantiated. The man who made the comment was eventually interviewed, it said. The WRU also said it couldn't say any more due to a settlement agreement signed by both the governing body and Ms Wathan in December which ended a looming employment tribunal.

So who actually carried out the probe? WalesOnline can reveal for the first time it was Hugh James solicitors who were instructed to look into Ms Wathan's grievance. The firm is widely known, with offices in Cardiff and London, and acts for the WRU on certain matters.

We approached them for comment, with the firm insisting it does not have commercial ties with the WRU other than its role as one of a number of law firms the union instructs on particular matters from time to time.

A Hugh James spokesperson said: "Our employment lawyers are vastly experienced in all aspects of HR and employment law and work with businesses across a host of industry sectors. The work we do for our clients covers everything from day-to-day employment matters to large and complex investigations and disputes.

"In May 2021, we were instructed by the Welsh Rugby Union with the specific remit to gather evidence into an individual but wide-ranging grievance complaint made by an employee. We carried out a thorough, arm’s length investigation over a number of months which included interviewing the key witnesses in relation to the fundamental aspects of the grievance.

"Hugh James is one of a number of law firms instructed by the WRU to provide legal advice across a range of matters. We are not retained by the WRU as their employment/HR law advisers: this matter was a one-off instruction in relation to a specific HR investigation. An experienced investigating lawyer was appointed to carry out a thorough, arm’s length investigation into Ms Wathan’s grievance. Over a period of several months, the lawyer interviewed numerous witnesses in relation to key aspects of the grievance. Following these interviews an extensive report was produced for the WRU which covered all aspects of Ms Wathan’s grievance. We are unable to provide any further detail or comment on our involvement in this investigation due to our professional obligation to ensure client confidentiality."

Of course, Ms Wathan's grievance is just one part of this and the allegations of others — including a former employee who said she considered suicide after alleged bullying and the devastating resignation speech of former Professional Rugby Board chair Amanda Blanc in which she revealed sexism among elected WRU officials — paints an incredibly grim picture.

Why timings are important

As with everything, the devil is in the detail and in this case the timing of events is absolutely crucial. In his letter to the clubs on Tuesday afternoon, and in subsequent interviews Phillips has put a big emphasis on the timeframe of 2017-19, when he says the WRU's culture "fell well short of standards where people weren't confident enough approaching us confidently with the concerns they had".

This is important because it falls under the tenure of his predecessor Martyn Phillips and the then chairman Gareth Davies. It is accurate to say a large part of Ms Wathan's claims allegedly happened during this timeframe but some of the allegations in Ms Wathan's letter of grievance, seen by WalesOnline, refer to 2020, while former Professional Rugby Board chair Amanda Blanc left Welsh rugby in December 2021.

This is crucial because, as was revealed on the BBC on Monday, in Ms Blanc's leaving speech she claimed sexism and misogyny was rife within the governing body, with senior WRU figures allegedly saying "men are the master race", and that "women belong in the kitchen".

Phillips, who became interim chief executive in September 2020 before being appointed on a permanent basis in March 2021, and the current WRU board would have been present when Ms Blanc's speech was given so why has he just focused on the years 2017-19? Phillips has also been a senior figure at the WRU in his previous role as finance director, joining the union in this capacity from 2007.

Given the sheer ferocity of the current storm and the anger so many feel towards the man at the top, is it really feasible for Welsh rugby to move on with Phillips at the helm?

The war with the regions and the funding deal on a knife-edge

While the current focus is quite rightly on the allegations of bullying and sexism at the WRU, the very future of the four regions is at stake.

All four sides — Cardiff, Dragons RFC, Ospreys and Scarlets — endorsed a letter from Cardiff non-executive director Hayley Parsons for Phillips and the WRU board to resign. You can read that here.

The relationship between Phillips and the regions has been at breaking point for a very long time, but it has now reached the point where it is unworkable. The four regions and the WRU signed heads of terms on a new six-year financial framework last week but the deal has not yet been signed off.

While they would rather Phillips was out of the frame, the prospect of the CEO leaving before a long-term financial deal has been signed leaves them in a very dangerous position.

Due to the delay in getting the deal signed, the regions have been living hand to mouth for the last few months, and any further delays raise the very real prospect of at least one of them heading into administration.

Should Phillips leave his post, a plan needs to be put in place to ensure the short-term survival of all four regions as a bridge while they sign off a long-term funding deal.

Also, it casts a shadow over Warren Gatland and his Wales squad ahead of the Six Nations in just a week's time, with there still being a contract freeze in place. Many of his squad are out of contract at the end of the season and face the difficult decision between waiting for this stand-off to end or to risk their international careers by signing a contract in England or overseas. Whether this affects their performances over the next two months remains to be seen.

The TikTok Women's Six Nations will then kick off in the latter half of March, with Wales Women vying to keep on improving in just their second year of professionalism and contracts while bidding for a top-three finish to guarantee a place in the top tier of a new global women's competition, WXV, launching later this year. While the women's performance programme and those involved in it would likely benefit from any future changes at the WRU to eradicate any sexism, players undoubtedly being quizzed about this huge off-field topic in the run-up is not exactly ideal from a performance point of view.

Who has the power to remove Steve Phillips?

All the power lies with the main WRU board.

With regards to potentially sacking Phillips, this would fall under employment law and it is unlikely to happen because they've supported everything he has done so far. There would be no case for gross misconduct.

He would basically have to agree to leave with a negotiated settlement and ironically a non-disclosure agreement but as it stands his position is close to being untenable given the loss of confidence from certain clubs and key stakeholders associated with the WRU.

If he was to leave, Ieuan Evans as chairman would have to consult the eight members on the board either individually or collectively. He would then propose to the board that Phillips be relieved of his position and then the board could agree it. The three experienced non-executive directors on the board — Henry Engelhardt, Catherine Read and Malcolm Wall — are likely to play a strong advisory role.

The future of Ieuan Evans

The question which people aren't asking is what happens to WRU chairman Ieuan Evans if Phillips gets sacked?

Evans fronted up to the press on Wednesday and, while he pledged to do all the can to improve the culture of Welsh rugby, he threw his full weight behind Phillips. That leaves him in a difficult spot.

Evans became vice chair in December 2021 so he would have been aware of these allegations amid claims of a "toxic culture." To be fair, he has announced plans for an external taskforce to clean up Welsh rugby, and the WRU insists a lot of these grievances were investigated. But should more have been done? Has Evans made a big personal mistake in standing by Phillips in the eye of a seemingly unstoppable storm?

Who would replace Phillips should he leave his position as CEO?

In the interim, the obvious choice would be performance director Nigel Walker. The former Wales wing is qualified having worked within sports administration for years. He was previously national director at the English Institute of Sport, and was also head of sport at BBC Wales for five years.

However, in the long-run the WRU may have to turn to the market to make an external appointment.

Can the reputational damage be fixed?

This is a big problem for the WRU.

Major sponsors such as Principality Building Society have already come out condemning the allegations and will not want their brands associated with sexism, racism and bullying. If sponsors pull out, and cannot be replaced, the financial implications for Welsh rugby would be enormous both at professional and community level.

This is why the WRU need to act quickly and decisively. They will desperately be hoping a successful Guinness Six Nations campaign under Gatland will improve things but that would be naive in the extreme. This isn't going away.

READ NEXT:

Rugby tackle laws to change at all levels everywhere in seismic move

Welsh rugby players 'appalled' and Dragons chairman goes public

Warren Gatland's main problem position for Wales Six Nations opener with Ireland and how he solves it

All four Welsh regions endorse damning letter demanding WRU chief Steve Phillips and board resign

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.