News that English professional rugby’s Gallagher Premiership will not pursue an Anglo-Welsh merger will come as a fresh blow to those who had hoped to see a combined competition and leaves the future of Wales’ professional clubs in limbo.
A proposal for an Anglo-Welsh league was one of a number of options under consideration by Premiership clubs at a board meeting last month, as part of a consultation to explore ways of increasing the value of future broadcasting deals.
Those in favour of a merged league, such as Scarlets’ executive chairman Simon Muderack, argue that increasing the number of fixtures between Welsh and English clubs would bring benefits including bigger crowds and increased gates, re-igniting cross-border rivalries, additional broadcasting revenue and commercial opportunities.
Any change to the competition’s structure would have required the approval of the 10 Premiership clubs, but differences of opinion on how to proceed have meant the prospect of an Anglo-Welsh merger is dead, at least for the time being.
Chief executive Simon Massie-Taylor said that the Gallagher Premiership is in a “very strong position” after various options were discussed at a board meeting of English clubs in September.
One of the key considerations is what would happen to the United Rugby Championship (URC) if Welsh or Irish teams were to leave as part of any proposed merger with English rugby union. The URC is an annual rugby union competition involving professional teams from Ireland, Italy, Scotland, South Africa, and Wales. Any merger would impact on the viability of the URC, potentially leaving a country’s teams without a league. Given that private equity giants CVC owns a 27 per cent share in Premiership Rugby and a 28 per cent share of the URC, any merger could also have had detrimental consequences for its wider interests.
Speaking about the prospects of a merger, Massier-Taylor continued: “When you look at the relative economics of things it’s quite hard to make it work for all stakeholders. I do think we’re in a very strong position. It’s difficult to see how you take an expansive approach without compromising elsewhere in the system.”
So, what does the immediate future hold for Welsh rugby now that the proposed merger is off the table? Financial challenges have dogged Welsh rugby in recent years, with all four of Wales’ professional clubs announcing multi-million pound losses earlier this year. Improving the long-term financial outlook for Cardiff, Dragons, Ospreys and Scarlets is key to the Welsh Rugby Union’s (WRU) strategy. The WRU is currently working on proposals to help Welsh professional teams become more financially secure, including an offer to take £14m of the clubs’ debts in exchange for a 20% equity stake and more say over key appointments, and increasing the playing budget cap from £4.5m to around £6m for the 2025/26 season.
Any club hoping to compete in the RFU Premiership must prove their financial viability and meet minimum operating standards, so if the WRU can get Wales’ professional clubs on a financially secure footing, they may be in a stronger position to argue for their inclusion in the future.
Meanwhile, Wasps, London Irish and Worcester have each applied for a place in next season’s expanded RFU Championship raising the chances of a potential return to the Premiership, following the recently announced reintroduction of promotion and relegation playoffs. With English rugby already making changes to its competition structure to accommodate additional teams, the likelihood is that Wales’ professional sides will have to content themselves with the URC, at least for the foreseeable future.
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The above is accurate as at 15 October 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
