Wales’ cash-strapped regions are desperate for central funding from the Welsh Rugby Union to drop

Wales’ four cash-strapped regions are desperate for their first instalment of central funding from the new six-year agreement they agreed with the Welsh Rugby Union last month.

Mail Sport understands the relationship between the regions and their suppliers is at breaking point as the sides owe large sums of money which they currently cannot afford to pay.

The benefactors at Dragons, Cardiff, Ospreys and Scarlets have ensured staff have received salaries on time but there can be no doubt the budgets at those sides are currently at shoestring level. 

After months of wrangling and uncertainty which led Warren Gatland’s Wales squad to threaten to strike for their Six Nations clash with England, the WRU and their four professional sides signed a new, long-term Professional Rugby Agreement (PRA) until 2029 on March 31.

It was heralded at the time by the Professional Rugby Board – which is made up of both WRU and regional representatives – as a move which ‘provides financial predictability.’ But nearly a month after the deal was signed, the first branch of new central funding due from the union to the regions has not arrived.

The Welsh Rugby Union has not paid the first instalment of central funding to the four regions

The Wales team threatened to strike for a Six Nations fixture until the matter was resolved

Regional suppliers are said to be very frustrated with not receiving payments while it is also understood some players are owed outstanding sums related to their image rights.

The result – at the end of what has been the most tumultuous season in Welsh rugby history – is that the sides are struggling badly for cashflow although they are still receiving central funds from the previous agreement.

The new PRA is now operational so the regions had hoped they would have received funding from it by now although that has not happened.

When the new PRA was announced, it was confirmed it is ‘reliant upon certain external approvals related to existing loan arrangements.’

During the height of the Covid-19 pandemic, Welsh rugby took a loan of £20million which was used to ensure the survival of the regions at a time when live sport was not allowed.

Welsh rugby’s new PRA is unpopular with many given that as part of it, each region will operate off a salary cap of £5.2m for next season.

That will drop to £4.5m for the following campaign. The money given to each region through the PRA is more than just the salary cap which is the figure spent on a team’s playing squad.

Will Rowlands is one of several internationals moving elsewhere due to Welsh budget rules

Player wages will plummet and regional squad sizes will drop from near the 50 mark to around 36 for next term, making the chances of the regions being competitive slim to none.

In a campaign of turmoil, financial meltdown has already led to a Welsh rugby player exodus.

Internationals Will Rowlands, Dillon Lewis, Jarrod Evans and Ross Moriarty among others have all confirmed moves to France and England with money tight in their homeland.

Dan Lydiate has announced he will be leaving the Ospreys after not being offered a new deal while Rhys Webb and Gareth Anscombe are also expected to head for foreign climes.