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Wales Online
Sport
Steffan Thomas

The WRU EGM vote, what will happen and the swift resignations expected if all goes wrong

It is no exaggeration to label Sunday's extraordinary general meeting in Port Talbot one of the most important events in the modern history of the Welsh Rugby Union.

People will point to on-field events such as Six Nations Grand Slams or big Rugby World Cup knockout clashes but the only event which matches Sunday's meeting in terms of importance is the inception of regional rugby back in 2003.

The future direction of the game in Wales both at community and grassroots level will be decided at the Princess Royal Theatre in Port Talbot in what has been described as a "watershed moment".

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A vote against the motion put forward by the WRU would leave the game in a state of complete and utter disarray.

Here is everything you need to know about Sunday's EGM.

Why has an EGM been called?

This EGM has been a long time coming with the governance of the WRU having been questioned for a number of years, with many labelling it "archaic".

But the straw that broke the camel's back was a BBC Wales investigation when past employees of the WRU accused the governing body of overseeing a "toxic culture".

There were allegations of misogyny, sexism and racism within the WRU which has led to huge scrutiny over the treatment of women within Welsh rugby.

Add to that the failing regional game, along with the declining fortunes of the men's national team, then you find yourself in a perilous situation.

What is governance?

While the allegations of misogyny and sexism have hastened the need for change, the only way any problem can be solved is through a change of governance.

But what is governance?

Governance is the processes and system which an organisation puts in place in order to manage itself effectively, efficiently and economically.

The WRU board is made up of 12 directors, with eight representing the community game, along with the chief executive, chairman and two independent non-executive directors.

It is the role of the board to challenge and to support the staff of the WRU and to make the necessary appointments and decisions in order to push the organisation forward.

It is also their role to outline a vision, strategy and business plan to make sure Welsh rugby reaches its potential along with establishing a morally strong culture.

What are the WRU proposing?

If approved, the WRU proposals will:

  • Increase the number of independent representatives (INEDs), who are appointed rather than elected, from three to six;
  • Reduce the number of elected national or district members on the board from eight to four, with one of those positions still automatically occupied by the Community Game Board chair.

So the full composition of the new WRU Board would be:

  • CEO and independent chair
  • Four independent non-exec directors (INEDs)
  • Chair of the Professional Rugby Board (also an INED on appointment) and an elected or appointed or selected representative for the women’s game
  • Four national and district council members including chair of the CGB

All changes would be made under the aspiration that at least five of the 12 directors would be women.

How will the vote work and what needs to happen for the motion to pass?

In order for these governance changes to be enacted, 75% of all clubs must vote in favour.

In the WRU's Annual General Meeting last autumn, 64.5% of clubs voted in favour of introducing an independent chair but it was not enough to pass the motion.

The EGM will be held in Port Talbot at 11am and will be chaired by the President of the WRU Gerald Davies. It is likely clubs will vote by ballot.

But won't the community clubs lose control?

This appears to be the concern of a section of the community game who fear losing control to the Professional Rugby Board, but ultimately it is not the job of the clubs to control and run the WRU.

The clubs do not own the WRU, they are members of a company limited by guarantee. Their job (like shareholders of companies) is not to run the company themselves, but to appoint the board and to find the best possible people to run the organisation.

In essence, better governance should lead to better management and oversight being put in place which will benefit the community game as much as any other aspect of rugby in Wales.

What is the biggest problem with the WRU's current governance?

As it stands there isn't enough diversity on the board.

In any organisation you want as many different perspectives as you can get, along with a variety of skillsets.

The problem with having a community game majority on the WRU board is they come from very similar backgrounds, and in the main have the same view on how rugby should be run in Wales.

The more people from different backgrounds the better because it forces a constructive debate, and by having alternative opinions it can often clear the way for a much better outcome which can benefit all.

While representatives from the community game are essential you also want people with different skillsets, be it legal, rugby, political, commercial or public relations.

Many people misunderstand the WRU's desire to have more women on the board. This isn't tokenism because, again, it is essential to have people with a variety of perspectives and skillsets, and this includes gender.

The WRU are facing serious issues from the allegations of sexism to the financial crisis engulfing the regional game, but as it stands most of the people on the board do not possess the required skillset to fix these problems.

This is about ridding the board of well-intentioned volunteers from the amateur game to replace them with the calibre of people who are business leaders, in order to increase the revenue for all parts of the game.

Having more INDED's on the board is crucial because they have the business experience to better allow them to monitor the performance of the board more effectively than district representatives.

This would could help mend the toxic relationship which has previously existed between the WRU executive and those running the professional game.

An independent chair is also crucial because there are not many candidates within the Union who are suitably qualified, nor will there ever likely be. That's why external experience is a necessity to keep the Executive under scrutiny.

What are the consequences of voting against the motion?

As the WRU's independent non-executive director Henry Engelhardt told WalesOnline this week, there are likely to be catastrophic consequences should the motion fail to pass.

Firstly, the reputational damage would be close to unfixable given the allegations of misogyny and sexism within the WRU.

If enough clubs voted against increasing the amount of women in key positions on the board then there is a danger the WRU will be viewed as a backwards, sexist organisation.

This could lead to significant financial losses with key sponsors having already warned the WRU they would consider their positions if the current cultural issues aren't corrected.

It would also be difficult to replace these sponsors because many businesses may not want to associate themselves with the WRU.

Consider the case of the former chair of the PRB Amanda Blanc, who left Welsh rugby after alleging she suffered misogyny and sexism.

In her leaving speech Ms Blanc claims an elected WRU member made misogynistic comments in public which included the term "men are the master race".

When you add in the Welsh Government's outrage at these allegations and the fact an independent taskforce led by the Rt Hon Dame Anne Rafferty DBE is investigating, then these proposals simply have to pass or Welsh rugby really would be staring into the abyss.

A no vote would be catastrophic for the game in Wales as a whole with the lost revenue likely to be so severe it could lead to some grassroots clubs and even a professional side going to the wall.

Also, there is the danger of the independent non-executive directors Engelhardt, Malcolm Wall and Catherine Read walking away from the WRU.

Wall, the chair of the PRB, has already suggested his position would be untenable and he is unlikely to be the only one given how important many deem the whole issue.

If the result goes the wrong way, expect swift resignations and a game plunged into a crisis even bigger than those that have come before.

The likely result?

It is impossible to say for certain but the general consensus in Welsh rugby is that this will be tight.

Nearly 50 clubs have taken to Twitter to declare their intention to vote yes but the biggest threat to the WRU is the silent minority and whether they've been convinced since voting against an independent chair at last year's AGM.

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