Welsh rugby deal delayed by Cardiff crisis

The WRU said a regional deal was "so close" before Cardiff's collapse

Professional rugby in Wales faces yet another delay to its long-awaited new funding plan following the collapse of Cardiff.

A year of wrangling looked to be finally coming to an end with a deal reached between the Welsh Rugby Union (WRU) and its four regional sides.

But Cardiff's decision to go into administration this week and the subsequent £1m WRU rescue has put that initial agreement on hold.

The drama at the Arms Park has also sidetracked WRU chief executive Abi Tierney as Welsh rugby awaits some crucial appointments.

Tierney hopes to announce a new director of rugby next week but has also admitted a new Wales men's head coach may not be in place for this summer's tour to Japan.

Scotland and British and Irish Lions defence coach Steve Tandy is a leading contender for the job, with Danny Wilson and Matt Sherratt potential options in any backroom staff.

The Professional Rugby Agreement (PRA) - a key priority for Tierney since her appointment in January 2024 - has been delayed by 12 months of negotiations.

Sticking points are thought to have included the extent of the WRU's say on national players, including when they play regional rugby and potentially which side they play for.

A breakthrough in February appeared to ensure four regions would be maintained and also that there would be extra funding.

But it has emerged that Cardiff's inability to commit to a three-year funding plan because of the absence of investment from new backers Helford Capital Ltd also hampered the process.

Dragons, Ospreys and Scarlets are now seeking clarity from the WRU over what this week's events at Cardiff mean to the agreement and their future relationship.

"We were so close [to a deal]. We had really good conversations with all four regional boards, including the previous Cardiff board, who had all agreed a deal in principle," Tierney told the Scrum V podcast.

"Cardiff has caused challenges this week but we've had really positive conversations with the other three CEOs [chief executives] and they have questions, but we're within touching distance. We're determined we'll get it over the line."

Tierney said the WRU was aware of financial issues at Cardiff back in September and among the club's debts was £9m owed to the governing body.

The WRU has put new directors Leighton Davies and Steve King in temporary charge of Cardiff before a new independent board is appointed.

Dragons, Ospreys and Scarlets have been assured that their level of funding over the coming five years is guaranteed.

The WRU also announced on Thursday it will cut up to 20 roles as it implements a restructure aimed at saving £5m a year.

It said the "transformative programme" would involve savings and efficiencies in the business and would allow the governing body to operate in a manner befitting of a £100m-a-year business.

Among the over-spending identified by Tierney was £50,000 a year on flowers at Principality Stadium.

Next Wales head coach

The WRU is still deciding on a title for what has so far been touted as a director of rugby role given the breadth of the job's remit.

Former Football Association, England Rugby and Team GB performance expert Dave Reddin is the leading contender, with Tierney suggesting an appointment is expected "very, very soon" having had a "busy couple of days" sorting the Cardiff issue.

Tierney said the successful candidate would then be involved in appointing a new head coach, but that the WRU has already drawn up a shortlist to succeed Warren Gatland on a permanent basis.

Gatland's mid-2025 Six Nations exit led to Cardiff's Matt Sherratt taking charge of Wales on an interim basis.

"We've done a lot of work on this, looking at who is out there, analysing playing style, who works well with younger teams and who also understands the Welsh system," Tierney said.

"We have a target list of who we want to go at. Of course they all want to know who will be their line manager.

"I've already spoken to the potential new director of rugby about these things and we'd like to appoint a new head coach shortly after that.

"But depending on their contract and notice period, which is often six months, we might need to have an alternative [coaching] plan for Japan, which we are working on."

Tandy's credentials

Steve Tandy was just 32 when he was put in charge of the Ospreys

Former flanker Tandy fits the criteria that Tierney has highlighted.

He has been out of Wales for seven years after coaching Ospreys between 2012 and 2018, winning the Celtic League title in his first season in charge.

The 45-year-old left for Australia for a role with the Sydney-based Waratahs before linking up with Gregor Townsend's Scotland in 2019.

Tandy also adopted a defence coach role with Warren Gatland's Lions squad in South Africa in 2021.

He could be backed up in a Wales backroom staff by the likes of Harlequins head coach Wilson and Cardiff boss Sherratt, who have previously worked together at Cardiff when the Arms Park side won the Challenge Cup in 2018.

Sherratt will become a WRU employee after the governing body took over Cardiff this week.

Other head coaches who have been linked to the Wales role include Franco Smith, Simon Easterby, Stuart Lancaster and Pat Lam.

Players' body 'relieved and grateful'

Meanwhile Welsh Rugby Players Association (WRPA) chief executive Gareth Lewis said the body was "relieved and grateful that the situation has been swiftly resolved".

Lewis' statement read: "We are especially thankful to the WRU for stepping up at a critical moment to purchase Cardiff Rugby and safeguard not only the club's future but also the livelihoods of its players and staff.

"We would also like to extend our sincere thanks to Cardiff Rugby and PWC for the professionalism and transparency shown throughout this process.

"The collaborative and efficient approach ensured the period of disruption for our players was kept to a minimum, and, most importantly, safeguarded jobs and provided clarity for our members."

The WRPA said it was "encouraged by the spirit of cooperation shown by all parties".