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WRU chair sets Welsh clubs new deal deadline as matters now 'urgent'
@Source: walesonline.co.uk
The Welsh Rugby Union has given the Dragons, Ospreys and Scarlets a deadline of Tuesday evening to sign the new Professional Rugby Agreement, according to reports.
WRU CEO Abi Tierney has been in negotiations with Wales' four professional clubs over a new PRA for months and was hoping everything would be signing before Judgement Day. But the WRU's recent takeover of Cardiff, following the club entering administration after majority shareholders Helford Capital failed to meet their contractual obligations, has complicated matters.
According to the BBC, WRU chair Richard Collier-Keywood sent an email to the Dragons, Ospreys and Scarlets demanding they sign the new PRA before "close of play" on Tuesday, April 15.
"Given your boards had previously agreed to sign the new PRA prior to the events of this week, I hope with the information above, they are assured the new PRA continues to represent a fair and better deal for Welsh Rugby," wrote Collier-Keywood.
"On this basis, we would ask to receive confirmation by close of play on Tuesday, 15 April, that the agreement remains secured, and we will circulate executable copies for signature. This is now urgent as we want to move forward into the 2025-26 season with certainty.
"In order to complete the re-financing, we will need to terminate the current agreement within this timescale."
The new PRA will see playing budgets rise to £6.9m by financial year 2029, while the WRU are planning to transfer the debt acquired from the Covid loans onto their own balance sheet.
The WRU's acquisition of the business and assets of Cardiff cost £780,000, with costs made up of about £480,000 in cash and £300,000 of debt. On top of this the WRU are committed to putting in around £1.2m into Cardiff until June 2026, meaning a total of £2m going towards the Arms Park region.
Before the takeover Cardiff had owed the WRU £9.1m with the governing body now turning £3m of that into an investment and leaving a £6m debt. The WRU will act as Cardiff's benefactor but even though Collier-Keywood has promised to provide the other three clubs with similar debt relief there is no indication at this present time they will match the £2m they are giving Cardiff.
Collier-Keywood and the WRU want to terminate the current PRA which has a year left to run to immediately move onto the new version. A clause in that contract says "the WRU may terminate this agreement by giving the company no less than two years' notice in writing to expire at the end of the relevant agreement year".
Such a move would not align with the WRU's stated aim of retaining four professional clubs with the governing body claiming they would be penalised financially by the United Rugby Championship and EPCR if they went down to three clubs.
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