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It promises to be another dramatic year in Welsh rugby, so is a merger between two teams really a possibility
14:38, 31 Jul 2026
After a relatively quiet summer, the rather sizable elephant in the room reared its head again this week.
The plan had always been for the Welsh Rugby Union to go from four professional teams to three. This week saw the governing body put a little more meat on the bones in terms of how they might get there.
Not a great deal to feast on, but the WRU at least confirmed that Cardiff and Dragons, should they agree to the final licencing terms, will be offered the central and east licences.
That leaves the two in the west, Ospreys and Scarlets, fighting for just one licence. Either there’s a clear winner and loser, or there’s always the looming spectre of a dreaded merger between the two.
Seven years since it was first mooted, a west Wales merger is once again on the cards.
That would appear to be the WRU’s preferred route.
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Providing they can get some form of consensus over the next year, they might view it as perhaps the path of least resistance.
Slowly, there’s a sense that many within Welsh rugby – within the clubs as well as the governing body – feel a reduction is required.
Anecdotally, at least one legend close to one of the west Wales sides was recently overheard at a match saying a merger is the best way forward. Now, that won’t count for much in the grand scheme of things, but they likely weren’t saying that back in 2019.
However, despite all that, there is an almighty amount of resistance to overcome.
After all, agreeing change is needed is very different to being the one to throw yourself on your sword.
Currently, there’s no apparent appetite in a merger from either side.
And even if the WRU could make a compelling case, ceding ground on who would be the majority stakeholder would be difficult.
Who has the upper-hand in things like the new club’s name and venue? That’s a difficult tightrope to tread.
Of course, if a merger cannot be reached, then you face the prospect of a tender process.
For starters, there would be question over how fair that process could truly be.
Former chair Richard Collier-Keywood previously stated all three licences would be open to bids – but that is no longer the case.
In terms of what the tender process could look like, it’s difficult to know what the criteria would be right now.
Looking at the Ospreys, you’d expect their main selling points to be their location – given they are based in Wales’ second city – as well as their track record since the start of regional rugby in 2003 and their knack of developing high-end internationals.
There’s also the links with Swansea University and the work they are doing on St Helen’s with Swansea Council’s backing.
The fact that their owners, Y11, were so heavily involved with the WRU in an attempt to buy Cardiff could be a factor, too. Could some sort of deal be cut?
As for the Scarlets, they would likely point to their stadium and infrastructure as a key factor in their survival.
Their history, links to the Welsh language and culture, as well as their own history of bringing through Wales internationals would also be factors.
Finances, too, will have to be considered.
Both clubs revealed they made losses in their most recent accounts, which went up to the summer of 2025.
The Ospreys made a loss of £1.8m, while the Scarlets lost £2.1m in what the club described as a “challenging” time.
Quite simply, the numbers make for grim reading – with Wales’ game behind rivals Ireland when it comes to income it can pull in.
That’s what is driving the need for change.
Even now, with a little more clarity, the path to what comes next isn’t necessarily that easier to follow.
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