Toby Booth: Ospreys head coach fears 'danger signs' for Welsh rugby's re-set
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Ospreys head coach Toby Booth believes there are "danger signs" over Welsh rugby's financial reset.
Booth's side face Saracens on Sunday for a place in the Heineken Champions Cup quarter-finals.
But he said budget cuts will reduce the Welsh regions to the roll of development teams with little chance of competing for silverware.
He fears that would cause irreparable damage to the game's appeal, especially compared to football.
"Everybody knows our chances of winning stuff are being reduced, it's just common sense," he said.
"I understand the financial side and you can't spend what you haven't got. But any form of sport is emotional and people follow success.
"So the danger is going down the development part of it and putting your foot on the break for a bit performance-wise. That means there's less for people to get behind.
"Welsh rugby is competing with Welsh football which looks like it's doing pretty well and has momentum.
"So there are a few danger signs around now. We've got to try and champion and support the performance side in addition to [balancing the books]."
Ospreys have been the surprise package in Europe this season after beating both the reigning English and French champions - Leicester Tigers and Montpellier - in the pool stage.
However captain Justin Tipuric admitted progressing in Europe will be tougher than ever next season when severe budget cuts and significant squad reductions take affect.
A long-form Professional Rugby Agreement (PRA) has been agreed which runs until 2029.
Under the agreement, salary caps will be introduced for the 2023-24 season, believed to be £5.2m reducing to £4.5m for the 2024-25 campaign.
It means squads will be cut from the current average of 47 to as few as 36.
Booth said: "Our part in this competition is something people can get behind and hopefully gives some positivity that we can compete with the right coaching, the right programme and the right people. But that's going to change.
"Unfortunately, money talks and there's a certain level you have to stay around to be a Champions Cup knockout team.
"So from that point of view, that's the worrying side and I encourage people to consider performance as much as the bottom line."
All four regions are in the bottom half of the United Rugby Championship and struggling to reach the play-offs.
And acting Welsh Rugby Union chief executive Nigel Walker admitted the next couple of seasons will be tough.
But he insisted regions would have gone bust without this financial "correction".
He added: "It is not going to be easy, nobody is sugar-coating it.
"If we look across the bridge with England, their budgets are £5 million, yes they can have a marquee player, we are coming down to £4.5 million year after next, so it is possible that we can still be competitive."