Unease over the financial challenges that have led to the ending of the Irish Men’s Rugby Sevens programme will be exacerbated by a look across the Irish Sea to Wales.

Last month Cardiff Rugby entered administration due to failed private funding. The Welsh Rugby Union intervened, purchasing the club’s legal entity to ensure its continuity.

This led to questions over the equality of funding promised to each of the four professional clubs under the latest Professional Rugby Agreement.

The Dragons and Cardiff signed the agreement but Ospreys and Scarlets did not and now notice has been issued that the current agreement will conclude in two years with a replacement in which Cardiff and Dragons will receive increased funding of £6.5 million annually, while Ospreys and Scarlets will continue with the existing £4.5 million allocation.

“This is not a decision that was taken lightly,” said a statement yesterday from the WRU.

“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.”

“Given the seismic changes in the rugby landscape since we first started negotiating PRA25, the system will not return to the model of four evenly funded clubs.”

“We are continuing to talk to all four clubs about what the future will hold.”

The Irish model has been built on each of the four provinces being supported entirely from the IRFU with no equity investment from outside, although individual sponsorship, government grant and philanthropic support is used at each.

None have been in the same level of financial peril as in Wales but the size of the countries, the history of the sport in each and many other areas are very similar.

 

Further Reading for Sport for Business members:

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SPORT FOR BUSINESS PERSPECTIVE

Ireland’s pragmatic and measured approach to the financing of professional rugby have protected it from the headwinds impacting others but in a sport where the market remains focused very heavily on a small number of countries playing at the highest level, danger in one can become contagious.

WHAT’S UP NEXT?

Leinster play Scarlets in the Quarter final of the BKT United Rugby Championship on Saturday, May 31st.

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