There are few people better qualified to talk about the state of Welsh rugby than Scarlets general manager Jon Daniels.
He may not be a household name but Daniels, who set up the Scarlets academy from scratch back in 2000, has been at the cutting edge of rugby in Wales for over two decades.
Daniels is a quietly influential figure in the game as chair of the Rugby Management Board which puts him around the Professional Rugby Board table, while he also sits on the European Professional Club Rugby, and the United Rugby Championship sporting regulatory committees.
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He also led the process in developing the rugby side of the new deal between the Welsh Rugby Union and the four regions which includes fixed/variable contracts, the standard contract, and the academy licence for players.
In recent months the stormclouds of ruin have engulfed the game in Wales with a protracted contractual freeze only being lifted two weeks ago, along with player wages getting driven down, while playing budgets at the regions will eventually drop to £4.5m in for the 24/25 season.
Despite being forced to cut their cloth accordingly, Daniels is confident the Scarlets will be competitive next season, but is quick to warn of trouble ahead if a way isn't found of preventing budgets from falling the following year.
"Based on our plans for next year, whilst the costs are coming down dramatically, we are still hopeful of being competitive," Daniels told WalesOnline.
"Competitive for us means getting to knockout rugby and that's still our aspiration for next season. That's what we've been building a squad around.
"I have to say if there are extensive further cuts the following season then we would be getting close to the point where we would potentially have to adjust our sights, not just on how well we can do but cutting further.
"The development and retention of talent in Wales is going to become more problematic. We need to find a way of preventing the playing budgets from dropping to £4.5m.
"Given the landscape at the moment I honestly believe everyone in Welsh rugby needs to make it a priority to prevent that. We've got a year basically to try to affect that £4.5m number and to try to increase it.
"If we work collaboratively and with a new outlook hopefully we can do that."
Daniels doesn't shy away from just how difficult a period it has been for the club with regards supporting the players during the uncertainty.
"When you sit in front of individuals who are affected then it's not easy," he said. "We took the decision in consultation with our players here that we would keep them informed.
"Basically what we said was we'd be open and honest with you and that includes if we can't offer you a contract. We won't hide behind anything.
"That was back in December and since then there's been regular dialogue. There are a lot of people who have been affected themselves who have also had to manage other people who are affected.
"The staff at the club have dealt with this very professionally be it the players, coaches, and backroom team. It's been a very difficult time but I think we are stronger as a group having come through it."
While there is understandably a large amount of doom and gloom surrounding the onfield prospects of the four regions next season, Daniels is quietly confident the Scarlets can reach the United Rugby Championship play-offs in 23/24.
His belief stems from the age profile of the squad and the steady stream of younger talent who are beginning to make their mark on the professional game.
The likes of Joe Roberts, Kemsley Mathias, Tom Rogers, Sam Costelow, and Ryan Conbeer have come to the fore in recent months.
"There's definitely future Welsh internationals among our young players," he said.
"The challenge is obviously going to be whether we can retain them in the long run.
"The likes of Kemsley Mathias, Shaun Evans, Sam Wainwright, Morgan Jones, and Jac Price haven't reached their ceiling yet.
"Our job is to give them the best environment possible to make sure they get there."
While the Scarlets' development pathway has always allowed them to punch above their weight Daniels is too aware it has to be supplemented with quality external recruitment.
Despite cutbacks and the precarious financial climate Daniels confirmed there is scope to add new signings to the squad with a particular focus on strengthening the pack.
"First there's been a big retention job to do and we are pleased in the main with retention this year," he said.
"There's also quality players who are in contract who will be here next season like Johnny McNicholl, Johnny Williams, Sam Lousi, and Vaea Fifita. That's a big plus for us.
"There will be some external recruitment but it's not going to be high in numbers because we are carrying a smaller squad. We've got a good generation of young Scarlets coming through and I hope we can see them progress next season.
"That is what gives us our confidence. Don't get me wrong there's some quality players who will be leaving at the end of the season like Sione Kalamafoni.
"However, we've got some tremendous young talent coming through along with the likes of Sam Lousi and Vaea Fifita with some external recruitment on top. We are also looking to strengthen the pack with some external recruitment. That's what gives us hope for next season."
What also gives Daniels hope of a brighter future is the progress of head coach Dwayne Peel.
The former Wales and Lions scrum-half has been faced with a difficult challenge after being forced to rebuild the squad following the failed Glenn Delaney era while also having to deal with the uncertainty behind the scenes.
But after a poor start to the season Peel has turned the Scarlets around with the West Walians looking like contenders to win this season's Challenge Cup.
Daniels has been blown away by Peel's quality as a coach and has no doubt he is destined for great things.
"Dwayne is as good as anybody I've come across in terms of clarity over his attacking philosophy," he said.
"It's his ability as a head coach which is really impressive because his strengths are he is honest, authentic and passionate.
"That's probably one of the reasons how we came through this difficult period and found a way through these circumstances.
"Those are qualities which gets us through those difficult times. His consistency of messaging is also important because he never stopped believing we could beat anybody. That's infectious."
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