Regions in midst of legal action against the WRU

The WRU's acquisition of Cardiff didn’t go down well in some quarters and its emerged a legal challenge has been launched. Steffan Thomas reports

- 

THE Welsh Rugby Union are in the midst of a legal challenge from the Ospreys and Scarlets over the governing body's acquisition of Cardiff in April.

WRU chair Richard Collier-Keywood has confirmed the WRU have been embroiled in a legal dispute with two of its professional clubs but has emphasised his confidence in the union’s position.

Cardiff entered administration last April after Helford Capital failed to meet its financial requirements, leading to the WRU assuming ownership of the capital city club.

‘This resulted in the Ospreys and Scarlets refusing to sign the new Professional Rugby Agreement (PRA) over concerns Cardiff would receive favourable treatment from the governing body.

‘The WRU responded by calling in the two-year notice period on the old PRA, which has led Welsh rugby to the brink of a reduction of professional clubs from four to two.

Confirmation of the ongoing legal challenge came on the day the WRU publicly announced it’s preferred plan to halve the number of pro teams to just two, with a six-week consultation to now begin.

‘The WRU has been accused by the two west Wales clubs of being in breach of UK and EU competition law as well as an abuse of its dominant position.

Collier-Keywood says the process is ongoing but wants the arbitration to be postponed until after the consultation process.