GUEST COLUMN:
Paul Thorburn
Former Wales international
Business Consultant
The appointment of Lyndon Faulkner as Chair of the Welsh Rugby Union (WRU) will, I am sure, be widely welcomed across Welsh rugby. He brings a deep understanding of the game, a strong appreciation of Wales and its communities, and a proven track record in business leadership. As he takes on this important role, I am certain the rugby community will wish him every success.
Over the past year, considerable debate has centred on the future of the regional game and whether Wales should continue with four professional regions, reduce to three, or even move to two. However, far less attention has been paid to a more fundamental question in my view: is the current ownership model itself sustainable?
Specifically, should Wales continue to rely on privately owned, benefactor-supported professional teams as the foundation of its elite rugby structure, or is there a more robust and sustainable alternative?
The Risks of Benefactor Dependence
There is no doubt that private investors and benefactors have made a significant contribution to Welsh rugby over many years. Their support has often been crucial, for that they deserve recognition and gratitude, but some benefactors have been guilty of not cutting their cloth accordingly and ignoring basic business principles by overspending on players.
However, acknowledging their contribution does not mean the game should be dependent upon it.
The reality is that professional rugby in Wales continues to operate in a precarious environment. Regions frequently face financial uncertainty, with some effectively living year to year. History has shown that professional rugby teams can encounter serious difficulties in a relatively short period of time, leaving the sport vulnerable to events beyond its control.
This challenge is not unique to Wales. Across the professional game, financial pressures are evident. Premiership Rugby clubs in England continue to report substantial losses, while several clubs have collapsed or entered administration in recent years. Against this backdrop, Wales must carefully consider whether its current model is capable of delivering long-term stability.
Lessons from the Past
The warning signs are not new.
The Celtic Warriors survived for only a single season before being disbanded. Cardiff and Dragons have both required intervention and support from the WRU at various stages. More recently, Cardiff’s financial difficulties ultimately led to WRU involvement once again.
These examples highlight a recurring trend: when private ownership structures fail, the Union often becomes the lender or owner of last resort.
This raises an important question. If the WRU repeatedly finds itself stepping in to protect the professional game, would a more centrally controlled system provide greater long-term security from the outset? I believe so, whilst acknowledging that this will require some robust structural and governance changes.
Comparing the Welsh Model with Ireland and Scotland
Both unions operate models in which the professional game is centrally controlled and strategically aligned with national objectives. While Scotland’s model is relatively newer and therefore still evolving, Ireland’s system has been established for decades and is widely regarded as a significant factor in the country’s sustained success both on and off the field.
The Irish Rugby Football Union’s centralised approach has enabled greater control over player development, financial planning and long-term investment. It has also reduced dependence on individual benefactors and external financial support.
Given that Wales faces greater economic challenges than many competing rugby nations, it is reasonable to ask whether a privately funded regional structure is the most appropriate model for our circumstances.
The above observations about Ireland and Scotland should also be supported by a recognition that both countries are far stronger economically than Wales, but they have both chosen this route regardless.
Important Questions That Require Answers
There are two fundamental questions that Welsh rugby stakeholders should address:
1. What happens when a benefactor chooses to withdraw support or is no longer able to contribute?
While contingency plans may exist, there appears to be no guarantee that alternative investors will be available. Recent history suggests that, in many cases, the WRU would be forced to intervene.
2. What assurances exist that current funding arrangements will remain in place indefinitely?
Professional rugby cannot confidently build its future on assumptions about the continued generosity of private individuals.
Goodwill is invaluable, but it is not a governance model.
Never Forget the Foundations of the Game
Any discussion about investment in Welsh rugby should acknowledge where player development truly begins.
The 4 Professional Regions do not and never have created players from scratch. The overwhelming majority of development occurs within community clubs, schools and local rugby environments. It is volunteers, coaches, parents and club officials who provide the foundation upon which future professional and international players are built.
The regions play a vital role in refining and developing elite talent, but the initial investment comes from grassroots rugby.
Therefore, any long-term strategy for Welsh rugby must place significant emphasis on supporting community clubs and this is where the bulk of the investment must be channelled.
Without strong grassroots foundations, the professional game ultimately has no sustainable talent pipeline.
Economic Reality Cannot Be Ignored
Wales operates within a challenging economic environment. Household disposable income remains lower than in many other parts of the United Kingdom, while business investment and economic growth continue to lag behind stronger economies.
Against that backdrop, Welsh rugby’s professional teams face the difficult task of competing with wealthier nations such as England and France for talent and resources. Let’s be realistic about it, we will never compete financially with them, so let’s not even consider trying to. The benefactors will be tempted, with the result that salaries are inflated well beyond the means of the business and ultimately, it will end in tears.
This reality demands pragmatism. Long-term success will not be achieved simply by increasing spending; it will come from building a sustainable structure that maximises the resources available.
That requires strategic investment in player development, community rugby and governance models capable of surviving economic shocks.
The Pathway Debate
Much has been said by the WRU, the regions and rugby commentators about the importance of the player pathway.
If pathway development is truly a priority, then an important question needs to be addressed: how does the continued recruitment of overseas players contribute to that objective?
Whilst acknowledging that overseas signings can undoubtedly add quality, experience and leadership to regional squads, given a small talent pool in Wales there must be a balance between strengthening teams in the short term and providing opportunities for Welsh-qualified players to develop and progress through the system.
A genuine pathway can only succeed if talented young Welsh players are given meaningful opportunities at the highest level and not have that ultimate goal taken away by an influx of overseas players, who might be happy to change National allegiance.
World Rugby’s eligibility regulations have significantly altered the international landscape, increasing player movement between nations and broadening qualification routes, sadly, what we are witnessing is a shameful merry go round and a loss of National identity which used to take pride of place and does question the long-term purpose of national pathways.
Time for a National Conversation
The future of Welsh rugby should not be limited to discussions about the number of professional regions, the most important conversation concerns ownership, governance, sustainability and long-term strategic planning.
The central question is not whether Wales should have four regions, three regions or two, the question is whether the current model provides the financial security and strategic stability required for future generations.
Given Wales’ economic realities, historical experience and the examples provided by Ireland and Scotland, that debate is not only legitimate, it is absolutely critical.
As Welsh rugby enters a new chapter under Lyndon Faulkner’s leadership, there is an opportunity to have that conversation openly and honestly. The future of the game may depend upon it.
