A report into the viability of regional rugby has led to fresh talk of storyline that is extremely familiar.
Just over three years ago, Welsh rugby was thrust into its latest round of chaos when it emerged that the Ospreys were on the verge of merging with the Scarlets, and such a proposal is being kicked around again after the leaking of a report from consultants Oakwell Sports Advisory into the financial health of Welsh rugby.
One of the proposals in the report is to slim down the number of regions in Wales from four to three.
And it is understood that has led to the idea of a Scarlets-Ospreys merger is back on the table, though not to the liking of everyone.
The 2019 saga, which came slap bang in the middle of a Grand Slam bid, is the last time Welsh rugby came close to losing one of its four professional entities. So how did we reach that point, why did it fail and why are we back here again?
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Three years ago players, and just about everybody else, were blindsided by sudden planned reports of the Ospreys and Scarlets becoming one. It engulfed Welsh rugby in a matter of hours and led to emergency meetings being held with all relevant parties, including the players, many of whom were leading the Grand Slam charge under Warren Gatland.
The reports were preceded by concerns over the Ospreys’ finances. Their previous annual accounts reported a loss of £500,000 and projected cash flow problems in the 12 months that followed. It reached a point where players were even told that the region would cease to exist beyond the approaching off-season.
This was against a similar backdrop to what we currently find in Welsh rugby today. The game as a whole was struggling financially and there was a general sense that something had to change. After much discussion it was decided that there was a growth market in north Wales that was largely untapped, but to make room for the emergence of a pro team there one of the four along the M4 corridor had to go.
On the field, though, it was not as if the Ospreys’ failings were stark. They were not enjoying a stellar season but would go on to win more games than any other region and be Wales’ sole qualifiers for the Champions Cup.
But there were issues with their tenancy at the Liberty Stadium, as it was then known. The region do not own the ground and did not have primacy over matches if there was a clash with Swansea City. Attendances were also a concern.
The Dragons were – and still are – owned by the WRU, and Cardiff and the Scarlets were in stronger positions off the field. So the finger was being pointed squarely at the Ospreys.
Given the circumstances an alternative was sought. The Scarlets said they were approached by the Ospreys over a merger, which the latter disputed though they did sign a heads of terms agreement. The Ospreys later insisted it was simply to explore the option, rather than being a sign of committing to the merger.
Things quickly began unravelling, though, when it began to feel like less of a merger and more of a takeover when the terms began leaking out. Suggestions were that the majority of matches would be played in Llanelli, the home kit would be red and the Scarlets would have a majority shareholding. Unsurprisingly, those terms were deemed wholly unpalatable from an Ospreys perspective.
Predictably, there was uproar among the fan base and comparisons were made to other sports. Would you ask Manchester City fans to stomach a merger – or a takeover – with Manchester United? The view that suddenly a new team’s fan base would double overnight was the stuff of fantasy as far as many were concerned. But Welsh rugby is a place where nothing can be written off entirely.
When the reality of what a ‘merger’ would look like became apparent, new Ospreys chairman Rob Davies – Mike James had just resigned citing the WRU’s ‘catastrophic mismanagement’ of Project Reset – torched the whole thing.
In a blistering statement, he said at the time: “There are three stark realities. Firstly, the concept of an Ospreys-Scarlets merger is dead and the clock is ticking. Secondly, Wales was promised a comprehensive review with nothing off the table, but nothing has yet been put on the table. Thirdly, the PRB cynically left it to the regions to have a shootout for survival with the clear direction that a region in the west should go and make room for a fourth in the north. We are now where we are as a result.
“It’s hard to look at this situation and not conclude that a stitch-up of convenience has just unravelled before us all. There isn’t a ‘plan B’, because there was never a ‘plan A’. Even the PRB has said a western merger was central to their planning, which is frankly mind-boggling. Wishful thinking is not an acceptable replacement for responsible decision-making.
“It’s now time for the grown-ups to get back in the room. It’s time for experienced strategic planning, robust consultation and a methodical process to emerge that is transparent, timely and carries with it the full range of the sport’s stakeholders. And this is what I will be discussing with Union and PRB officials over the coming days.”
That then paved the way for the status quo that we find today. There are still four pro teams that sit under the national team, finances are a constant issue and success on the field is infrequent. In short, the can has been kicked down the road for three years – of course, the pandemic hasn’t helped – and we’re back where we started.
Once again the Ospreys, joined by the Dragons this time, are perceived to be in the firing line. One notable difference this time, though, are some events that have preceded this juncture. The Welsh Rugby Union has received a significant windfall from private equity company CVC for its acquisitions in the Six Nations and United Rugby Championship in recent times. Also, the Union’s payments to the regions for this current season were nominal due to the financial implications of the Covid-19 pandemic and a loan was taken out – repayable by the regions themselves – to increase the payments back to normal levels in 2021.
It is also worth noting that the Ospreys have also secured private investment of their own after they were taken over by Y11 in May 2020. They have also made a series of impressive appointments off the field in a bid to future-proof themselves.
We are back in a situation where the recommendations are once again that one region has to go. But it is important to note that this recommendation is just that at the moment.
Putting it into action is far from straightforward - and moves in that direction will likely be met with fierce opposition. As happened last time.
