The Professional Rugby Board has claimed the four Welsh professional sides have been paying salaries to players they cannot afford amid talk of strike action.
News broke on Tuesday night that Welsh players were considering strike action ahead of the next Six Nations match against England. A meeting is set to be held between Welsh Rugby Players' Association representatives and players this week, with everything on the table including potential strike action as players deal with the uncertainty casting a shadow over the Welsh game.
The lack of a finalised funding deal has left the regions unaware of their budgets for next season, while the new proposed contracts structure has not gone down well with players. Many may struggle to get new deals at all, while others will take significant pay cuts.
In a statement, the PRB announced Welsh Rugby Union interim CEO Nigel Walker had met with senior members of Wales' Six Nations squad on Wednesday afternoon to "further clarify the situation", with Walker committed to maintaining an open dialogue to resolve individual concerns.
The PRB also accepted in their statement that the discussions over finances are "complex and nuanced" and that terms might not meet the expectations of players, but insisted that the game in Wales needed to live within its means. They added that, under the current agreement set to be reached, that would mean a salary cap for the 2024/25 season which is "in line with most competitors".
“The new agreement offers a complete funding package to the professional game in Wales, but it does come with financial limitations which will directly affect salary negotiations,” said PRB chair Wall.
“The cold facts are that the WRU and clubs have been paying salaries that their businesses cannot afford, so the new agreement establishes a new framework for contract negotiations.
“There is a stipulation that all current contracts will be honoured, but these businesses must return to a sustainable footing in order for the success we all crave to follow.
“The average salary of a Welsh professional rugby player under the new framework will be around £100k-per-year.
“We are confident that our salary packages are in line with the UK market. The PRB accepts that some better funded English and French clubs are paying more, but this is where we must set the mark of sustainability in Wales.”
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The statement added that the new six-year agreement, which has only been verbally agreed at this point, would include a new approach to international player release, a salary cap and a formal framework for contract negotiations across all four professional sides and the national squad, while there would be "no room for manoeuvre when it comes to the overall budget available for player contracts".
“We have absolute empathy with the professional players in Wales and are hugely grateful for all that they do for our national game, just as our regional sides are for the commitment of their players” added Walker.
“We know we are not in an ideal situation, but it is incredibly important for the whole game in Wales for us to get this next step right.
“We must get this right and if that means taking time to do so then that is the way it must be.
“Throughout all our negotiations our duty of care to our players in Wales has always been of paramount importance and that is why we have developed a solution around current contracts, which has been in place since the New Year.
“The next step is to confirm the deal and confirm these contracts and we will be moving as swiftly as we possibly can to that point.”
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