(Reuters) -Wales' four professional regions will not be evenly funded after the country's rugby union (WRU) said on Sunday that Ospreys and Scarlets did not sign the new Professional Rugby Agreement before the deadline.
The WRU said Dragons and Cardiff signed up to the terms of a new agreement which had been under negotiation since August last year but Ospreys and Scarlets missed the deadline, forcing the WRU to issue a two-year notice to terminate the agreement.
The current PRA deal runs out in 2027 and the WRU said "broader performance, financial and strategic needs of the game" should take precedence.
"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," the WRU said in a statement.
"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."
Although Welsh media reported that the number of professional teams would be reduced to three, the WRU made no mention of cutting a region.
"We are continuing to talk to all four clubs about what the future will hold," WRU CEO Abi Tierney said.
"We recognise this will be a time of uncertainty and are committed to treating all the clubs, players, and supporters with respect and fairness throughout this process.
"We acknowledge the continued commitment of each club to Welsh rugby and will formulate a new plan with the best interests of the whole game in Wales at the forefront of our thinking."
Scarlets and Ospreys play in the United Rugby Championship and the second-tier European Challenge Cup. Reuters has contacted both teams for comment.
(Reporting by Rohith Nair in Bengaluru; Editing by Ken Ferris)
