Welsh rugby will have three teams going forward, although four will remain for now
13:03, 24 Oct 2025Updated 13:11, 24 Oct 2025
Wales is set to move to three teams by 2028 at the latest(Image: Huw Evans Picture Agency Ltd)
The Welsh Rugby Union is set to cut to three teams going forward, with one in the west, one in the east and another in Cardiff, WalesOnline understands.
Players were informed of the news on Friday morning, although all four regions will remain in the short term. They have also been promised further details on the three proposed clubs – which may not share the same branding as the current teams – will be given in the coming weeks.
The WRU executive, led by director of rugby Dave Reddin, had proposed cutting from four to two professional sides before undertaking a six-week consultation with stakeholders. Amid a significant backlash from the clubs, players and fans, the WRU’s full board has now decided three teams will be its long term strategy.
The current four sides, Scarlets, Ospreys, Dragons and Cardiff will remain until the end of the 2027/28 season at the latest under a tiered-funding model. Looking forward, it appears the Ospreys and Scarlets could face a real fight for their futures.
It’s understood the timescale on the latest development is driven by the WRU’s contractual commitment to the United Rugby Championship, with the potential plan to replace an axed Welsh team with an American side believed to have been blocked by the South African contingent in the competition.
With no immediate contingency plan in place, the WRU would face a sizeable financial penalty were it to withdraw a side from the URC before the end of the 2027/28 season.
If the URC were able to find a replacement team before then, Wales could potentially reduce to three teams by the start of the 2027 season, having served a two-year notice on the previous Professional Agreement, which the Ospreys and Scarlets remain on after refusing to sign the new PRA.
The preferred process for losing a team would be through consensus, namely a merger between two sides. If no agreement can be found then a tender process will decide the outcome.
The WRU’s first-choice plan has faced strong criticism from politicians and supporters, with some protesting ahead of the new season starting. The threat of legal action from any team eventually cut has also been a cloud hanging over the governing body, while there has been no appetite among regional benefactors for any sort of merger so far.
Despite WRU bosses stating their preference was to reduce to two teams, they also said all options remained on the table and the initial consultation document did include an option to stick with four on a tiered-funding model, or reduce to three.
Two three-team models were put forward, one with all three on equal funding of £6.9m and the other with two elite sides on £6.9m and a development side on £5.4m.
The four-team option that was included in the WRU’s proposal released in the summer suggested a “2+2” situation, with two sides given a budget of £6.7m and two developmental sides on £5.2m.
WRU Director of Rugby and Elite Performance Dave Reddin(Image: Huw Evans Picture Agency Ltd)
How such an arrangement will work in practice could well be a bone of contention in itself in the weeks and months ahead, aside from which team goes in the longer term. WRU-owned Cardiff and the Dragons have already signed up to a new Professional Rugby Agreement, but the Ospreys and Scarlets both refused. That stand-off set in motion the union’s hardline stance and public desire to change the status quo earlier this year.
The WRU triggered the two-year notice period on the previous set-up and said the future landscape will not see four evenly funded teams.
A statement in May read: “The Welsh Rugby Union confirms Ospreys and Scarlets did not sign the new Professional Rugby Agreement (PRA25) by the deadline that was set. It has therefore taken the difficult but necessary decision to issue the formal two-year notice to terminate the current PRA agreement in order, in particular, to proceed with its debt refinancing.
“Dragons RFC and Cardiff Rugby have signed up to the terms of a new agreement (PRA 25), which had been under negotiation since August 2024. The One Wales Strategy was designed to create a more aligned, financially sustainable and competitive future for professional rugby across Wales. The WRU’s preference from the outset was to maintain four professional clubs (on equal funding) within this framework. Everyone worked hard to achieve that. However, agreement on the new PRA 25 could not be reached with two of the professional clubs.
“This is not a decision that was taken lightly, however given the WRU’s duties to the game in Wales as a whole, the broader performance, financial and strategic needs of the game must take precedence. In practical terms, the WRU will work closely with all four professional clubs to agree the way forward beyond June 2027, with an open mind to all constructive and realistic proposals.
“That said, given the seismic changes in the rugby landscape since we first started negotiating PRA 2025, the system will not return to the model of four evenly funded clubs.”
Following Reddin’s appointment a preferred plan was drawn up that consisted of just two pro teams in Wales, but it soon seemed to be in trouble amid the backlash. The WRU has insisted throughout it would listen to different viewpoints before the full board made its decision.
Follow all of our social channels to ensure you stay up to date with the latest Swans news. Sign up to our daily newsletter here and our WhatsApp channel here.
You can also follow us on social media on our X account and Facebook.
Our Swansea City correspondent Tom Coleman is also on social media. He can be found on his X account here, on Instagram, on TikTok and on Facebook.