The Welsh Rugby Union is drawing up a new participation agreement with its four regions after they refused to sign a continuation of the existing deal. It is unlikely to prove any more palatable to the quartet as the governing body will look to tie leading players to central contracts.
The issue of central contracts has divided the regions and the WRU in recent years and has led to the union abandoning a policy of favouring players based in Wales for international selection. More than half of the first-choice national team are likely to be earning their living outside the country next season, including the centre Jonathan Davies, who hopes to be back in action in March after an operation on a pectoral injury.
The WRU's board of directors met on Thursday to consider its response to the failure of the regions to meet a 31 December deadline to continue the agreement until 2019. As well as endorsing a statement put out two days before by the union on the way forward for the professional game, it agreed to "shortly" present the regions with a new agreement which would reflect "the WRU's desire to ensure that Welsh player development and the retention of Welsh players is properly recognised".
The main reason the regions rejected the WRU's offer of central contracts was that the £6m they receive for player release and having a minimum number of Wales-qualified players in their squads would stop, and be retained by the union and used to fund the deals with the players.
The regions argued they would not be able to sign quality stand-ins and in September put a five-point plan to the WRU that included central contracts with an extra £3m in funding. They have yet to receive a response.
The WRU's statement said that it had informed the four regions – Cardiff Blues, Newport Gwent Dragons, Scarlets and Ospreys – that they would shortly be presented with the new agreement even though the quartet negotiate with the union through their umbrella organisation, Regional Rugby Wales.
The regions will respond once they know exactly what is being offered but if it amounts to a repeat of the loss of £6m in funding they will resubmit their unanswered proposal for central contracts.
"We do not want to break away from the WRU," said the Newport Gwent Dragons chief executive, Gareth Davies, after the New Year's Day derby with Cardiff Blues at the Arms Park. "We want to be in charge of our own destiny and build for the future. It should be Wales plc, not the union against the regions."
The regions believe that there is scope for a European club tournament next season, which would amount to a British and Irish Cup with France in dispute with the home unions about how the game in Europe should be governed but only if clubs are given the power to run its commercial arm.
The WRU said in its statement on Tuesday that it wanted to keep the status quo, which as things stand would mean no Heineken Cup next season. "A concern for the WRU directors should be that if this goes to the high court, a judge stuck in London will decide on the future of Welsh rugby," Davies said.
