Dragons back WRU deal to cut all regions' debts

Dragons are keen on a deal with the Welsh Rugby Union (WRU) that they believe would secure the immediate financial future of regional rugby.

The Newport-based team is the first of the four Welsh regions to publicly comment on the on-going talks with the governing body.

It follows reports that the WRU is ready to wipe out a significant proportion of the debts being carried by Cardiff, Dragons, Ospreys and Scarlets in return for a 20% stake in each.

That deal is also said to include handing Wales head coach Warren Gatland a greater say over access to players that currently exists.

Dragons chief executive Rhys Blumberg told the Scrum V podcast: "Talks are very positive from our perspective and we're keen to get a deal done."

He added: "We are keen to move forward with a deal which sees us having more money and gives us an opportunity to be more competitive with the rest of the league.

"There's a lot to happen over the next few months and hopefully we will get an agreement that gives us a solid footing to progress in terms of budget over the coming years."

The Welsh government provided an £18m loan to the WRU in 2022, which it passed on to the four professional sides.

But on her first day in the job, back in January, WRU chief executive Abi Tierney received a letter from the Joint Supporters Group (JSG) Cymru urging the governing body to ease that financial pressure on the clubs.

Now the WRU could respond by taking on the remaining balance of that Welsh government debt, believed to be about £14m.

But that would almost certainly come at a price which is likely to take the shape of handing over part ownership of the regions and potentially control of when, where and how often players play.

Scarlets executive chairman Simon Muderack said in August he expects "big positive steps forward" this year in the relationship between the WRU and Wales' four professional sides.

Now Blumberg said talks are progressing to overcome the difficulties of finding a deal that suits all parties.

"It's not as straight forward as throwing out one deal that suits everybody," he said.

"There are a number of proposals, but it's challenging because you have four different ownership groups with four different objectives.

"But the WRU executive board that has taken control are a huge step forward from where they were. They've really tried to make it work, trying to get us more money and make us all more sustainable."

Blumberg's comments come just 16 months after a consortium led by David Buttress completed a takeover deal to take the Dragons out of WRU ownership.

In June 2024 the WRU outlined its five-year plan to rebuild the national sport.

It estimates a £1.45m gap in funding per year, per regional team over that period, equating to a shortfall of £29m.

The regions saw their budgets further trimmed to £4.5m this season, but Blumberg said he remained hopeful that they would rise next year.

The WRU is due to outline the exact details of that plan next month.