Welsh Rugby Union confirms which two teams must merge or cease to exist

Three teams.

The Welsh Rugby Union has confirmed that Cardiff and the Dragons are in line to receive two of the three professional licences under its new regional structure, leaving the Scarlets and Ospreys battling it out for the final remaining place.

Unless the two west Wales rivals agree to merge, one of the regions will cease to exist at the end of the 2027/28 season.

The WRU board has now approved a timeline for the new licensing process, with work beginning after this year’s Nations Championship before the formal licence award process gets underway in December 2026. A final decision is expected before the end of the 2026/27 season.

All four Welsh regions remain signed up to the current PRA25 agreement until 2028, when the professional game will officially be reduced from four teams to three.

Following the autumn internationals, the WRU will bring together representatives from each professional club and other key stakeholders to help shape the future operating model.

The governing body hopes the process will establish a shared understanding of Welsh rugby’s financial challenges while also determining which clubs wish to take up the new licences from 2028 onwards.

The Scarlets and Ospreys famously came close to merging in 2019 before the agreement collapsed at the final hurdle despite heads of terms having already been signed.

A merger could once again become the preferred solution, although the WRU has also previously suggested the western licence could be put out to tender if no agreement is reached.

WRU vice-chair John Manders insists the governing body is making progress towards securing the long-term future of the professional game.

“We have affirmed that the future operating model will involve three professional teams from the start of the 2028/29 season and now have a firm timeline for our next steps.

“We have already begun to put the support structures in place to develop the related player pathways, to create the best environments for our senior players, to provide the right financial support and to develop the facilities around them.

“We are making important progress which will safeguard the future of our game, concentrate resources and give our teams the best chance of achieving success at all levels.”

Professional Rugby Board chair Marianne Okland acknowledged uncertainty remains, particularly over the final western licence, but stressed the importance of reaching a solution quickly.

“There is now a duty on all of us involved in the professional game in Wales to work together to determine a shared future operating model.

“How we progress over the forthcoming months will be critical. The aim is to finalise the new licensing model as quickly as possible and then move quickly to confirm future licence arrangements and transition plans.

“This will allow an orderly implementation and avoid prolonged uncertainty for clubs, players, supporters, investors and sponsors.

“Assuming that Cardiff Rugby and Dragons RFC want to sign up to the proposed licensing terms, there is now certainty that they will be offered the capital and east licences respectively.

“We understand that there will be ongoing uncertainty until a final decision on the west licence is made.

“That is why we are committed to progressing in a collaborative way, whilst not underestimating the considerable challenges ahead, and providing stability for all at the earliest opportunity.”