At the start of September, I wrote a blog following the announcement by the Welsh Rugby Union (WRU) of its proposed plans for the elite game in Wales. At the time I suggested that the plans were somewhat controversial, and it gives me no great pleasure to have been proved correct.
What I didn’t predict was how quickly the new plans would unravel. Last week representatives of the Dragons walked out of a discussion meeting with the WRU, declaring that the WRU’s plans for the professional game are “not viable or desirable”.
The key issue that the Dragons (and presumably the other three professional clubs in Wales) have taken umbrage over is the insistence by WRU on controlling all rugby-related matters, including directly employing all the players, coaches and support staff.
The Gwent-based Dragons issued a statement following the meeting claiming: “Central management by the WRU of all rugby operations is not acceptable, nor is it in the interests of club owners, who expect to be fully responsible and accountable for rugby operations, a key and fundamental element of the club and business we bought.”
At the heart of the disagreement there seem to be two different views on how the sport of rugby works from a financial point of view. David Wright, the Chairman of Dragons RFC made his position very clear when he stated that ‘rugby and the business that sustains it do not live in separate worlds’.
The WRU has recognised that there are major failings in the structure of elite rugby in the country, which has been borne out by recent results. A one-point, final minute victory at home against Japan has certainly not placated Welsh rugby fans or provided any sense that the worst is over. Just looking at the bookmakers’ odds for the forthcoming Six Nations shows that Wales are the firm favourites for the wooden spoon. While any overly optimistic supporter can get odds of 250-1 on Wales to win the tournament, the fact the bookies are offering those odds in a six-team competition clearly demonstrates the current state of Welsh rugby. For context, these are the same odds you can get for Scotland winning next year’s FIFA World Cup!
While it is simple to lambast the WRU’s initiative, its objective is well-meaning. It has stated that it aims to deliver long-term success through alignment across all levels of the game and financial sustainability, by helping everyone in Welsh rugby to work together in the spirit of collaboration and shared purpose. Not much to argue with there in terms of destination, but it is the route they are proposing that is causing the problems.
By attempting to wrestle control of all elements of rugby management from the clubs to ensure the WRU has complete control over the governance of the professional game, it is alienating the very financial benefactors that the game relies upon. It is often said in rugby circles that the surest way for millionaires to lose money is to invest in a rugby club, but they still do as it becomes a passion project rather than an investment.
Probably the most successful investor in English rugby has been Nigel Wray, who poured millions of his own money to transform Saracens into a European rugby powerhouse. During his tenure the team won the European Champions Cup three times and the Premiership five times in just over a decade. Despite that unprecedented success, when in 2021 Wray sold his shares in the club for £30million, it was calculated that he had personally lost £10 million during his time in charge.
But, during that Saracens dominating era, England benefitted with the likes of Maro Itoje, Owen Farrell, the Vunipola brothers and Jamie George to name a few becoming stalwarts in the England set up through being financed to continue playing their rugby in England. While there were problems that came to light regarding salary caps etc, in essence the system worked successfully and there are very few calls for the RFU to take over the running of the PREM.
While everyone is in agreement that rugby in Wales is in dire need of an overhaul, the current attempted power grab by the WRU currently looks riskier than a £10 flutter on Wales for the Six Nations!
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David Little is a Partner at Bishop & Sewell in our expert Sports Law and Corporate & Commercial
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The above is accurate as at 26 November 2025.
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.
