Nigel Walker: Welsh Rugby Union chief insists keeping four regions remains the aim
- Published
Nigel Walker played for Wales after competing for Great Britain and Wales as a 110m hurdler
Welsh Rugby Union acting chief executive Nigel Walker insists maintaining four regions remains the aim of the governing body.
A six-year agreement between the WRU and Cardiff, Ospreys, Dragons and Scarlets is close to being signed.
Walker says the Professional Rugby Board (PRB) is looking to retain the status quo.
"Very little in this world can be guaranteed, but the PRB aim is four regions," said Walker.
An independent report in 2022 looked into the prospect of culling a region and spreading resources across three professional sides.
"We had this conversation eight to nine months ago when the Oakwell Report came out," said Walker.
"We know that it suggested three, the conversation was had, and the aim is to hold on to four regions, and over the next few years to make them as competitive as we possibly can."
There will be reduced budgets for next season of £5.2m for each of the four regions with the 2024-25 season figure at £4.5m.
Walker says the decrease is required to help avoid the situation in England where two established clubs went into administration this season.
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"Most people understand there needs to be a correction because we don't want a Worcester and Wasps situation," added Walker.
"That correction is being made. It's going to be tough for the next year or so, but we all hope things will get better in the not-too-distant future.
"The correction has to be made now if the game is going to be sustainable.
"I've gone on record whenever this is thrown at me that you can't have a successful national team without successful regions.
"It's part of the same eco-system and we need to find a way to make both successful."
One of the long-term financial issues for the four regions is the Covid loan they still have to pay back.
The WRU initially negotiated the loan for Wales' four professional sides at the start of the pandemic in 2020 to avoid financial disaster.
However, the unfavourable original terms of the loan meant the regions were originally expected to pay it back over a three-year period.
The loan was later renegotiated while Steve Phillips was WRU chief executive and under the new terms, the regions will pay it back at £1m per year over a 20-year period.
Critics of the WRU say the governing body should have taken on that debt, something which Walker did not rule out in the future.
"Under the current covenants, it would require a change to those, but I'm not ruling it in and not ruling it out," added Walker.
"I've got to be very careful I don't overstep here because I'm the interim chief executive officer.
"It's always possible it could be on the table moving forward."