22 February 2023
Many commentators have been surprised by the relatively poor performance of the Welsh national rugby team in the 2023 Six nations tournament so far. It would seem that the players have been distracted by off-field matters. The continuing row between the Welsh Rugby Union (“WRU”) and the Welsh Rugby Players Association (“WRPA”) would appear to have spilled onto the pitch itself.
Brief background
In December 2022, the WRU announced a verbal agreement between the Professional Rugby Board (“PRB”) and the WRPA. This agreement outlines the financial plan for the four regions within Welsh Rugby (Cardiff, Dragons, Ospreys, and Scarlets).
These four regions have been supported by the WRU in a bid to promote Welsh rugby and ultimately create a successful structure that will maintain the development of Welsh players.
In 2014, the WRU introduced the Rugby Services Agreement (“RSA”) which distributed £8.7 million per region, guaranteed to be used towards Welsh qualifying players amongst access to loans to develop facilities and a £500k signing fee. [1]
National Dual Contract,
The WRU announced the new national dual contract where the union would commit to paying 60% of a player’s salary, and the region contributing 40% in return for the player providing his services to the national team at a minimum of 13 times per season (subject to selection).
The RSA was superseded by the professional rugby agreement, which increased the annual fee received by the regions to circa £20 million in 2019. This was then renewed in 2021, meaning it is due to expire at the end of the 2022/23 season.
Nevertheless, that expiry is creating significant issues for the regions as they are unable to budget for next season, despite the verbal agreement previously announced. With no budget in place among the regions, they are unable to offer new contracts to players whose contracts are set to expiry at the end of this season. Not surprisingly, this is prompting some Welsh players to look at playing options abroad.
Issue – 60 Cap Rule
However, the issue with players opting to play abroad means they risk not being eligible to play for the national team due to the 60-cap rule. This rule kicks in when a player moves abroad and, as a consequence, a player will only be eligible for selection by the Welsh national team if he has 60 caps or more.
The new framework is being disputed by the WRPA due to its focus on rectifying the governing body’s collective aim of financial sustainability. This means that the regions are set to receive a significantly reduced annual fee as well as introducing a salary cap similar to that seen in England and across Europe. Thus, creating potential reduced salaries for players of the regions who are coming to the end of their current contract which could lead to players being enticed to explore options further afield from Welsh Rugby.
Player walkout
This uncertainty has created disruption within the Welsh Six Nations camp, as players walked out of a planned WRU sponsors dinner and, as of writing, a deadline of 22 February 2023 has been set by the Welsh players as to whether they will play against England at the Principality Stadium on Saturday 25 February 2023.
The WRU is at a crossroads whereby the success of Welsh rugby is being assessed against that of sustainability. While sustainability is at the forefront of rugby amongst the other home nations, due to the financial difficulties experienced by Worcester Warriors and Wasps, the new framework seems to be at the expense of success.
[1] Dragon News : NEW RUGBY SERVICES AGREEMENT ANNOUNCED (dragonsrugby.wales)