Negotiations between the Welsh Rugby Union and Y11 Sport & Media for the sale of Cardiff Rugby have fallen through, the WRU confirmed. Cardiff Rugby will remain under WRU ownership for now, according to the union. WRU chief executive Abi Tierney stated that Y11 Sport & Media presented the best bid for Cardiff Rugby, but the WRU concluded it was in Welsh rugby's best interests to retain ownership. Tierney said in an official statement that Y11 presented the best bid but the WRU decided Cardiff should remain under its ownership for now, and expressed gratitude for Y11's professionalism and commitment.
The collapse comes as the WRU says its long-term aim is to reduce the number of professional Welsh regional rugby sides from four to three. The union says it will outline the terms for achieving this reduction to three sides by June 2026. Cardiff and Dragons have already signed the latest Professional Rugby Agreement that runs until 2030, the WRU noted. Tierney emphasized the strategic rationale behind this stated aim in a public speech, stating that moving to three clubs is necessary for financial and performance reasons and to invest in the pathway, and that this brings stability to the system while the ambition remains undeterred.
Y11 presented the best bid for Cardiff but the WRU has concluded it is in the best interests of Welsh rugby for Cardiff to remain under our ownership for now.
Swansea Council has mounted a legal challenge against the proposed sale and the WRU's broader restructuring plan. The council claims the proposed sale of Cardiff Rugby to Y11 would breach competition law by unfairly restricting competition, reducing supporter choice, and damaging Swansea's economy. According to Swansea Council, Y11 has not been able to give assurances that the Ospreys will continue as one of the four professional regions in Wales after the 2026-27 season. The council believes acquiring Cardiff would effectively end the Ospreys as a professional men's team, allowing the WRU to achieve its aim of reducing clubs to three. Rob Stewart, Leader of Swansea Council, declared in an official statement that the council has serious legal concerns about the sale and the WRU's decision to cut teams, believing it breaches competition law and intending to challenge it in court.
In response, the WRU contends that the sales process for Cardiff was legally robust and that there is nothing preventing an owner of a privately owned rugby club like the Ospreys from seeking to acquire another club such as Cardiff. The union also sought approval from the United Rugby Championship for two clubs in Wales to have the same owner. The specific reasons why negotiations between the WRU and Y11 Sport & Media broke down have not been disclosed.
We are all very grateful to Y11 for the professionalism and commitment to Welsh rugby they have displayed throughout this process.
Legal developments have seen the WRU agree not to sign off on any deal with Y11 before March 16 after Swansea Council sought a legal injunction. Additionally, Swansea Council has submitted a case to the Competition and Markets Authority regarding the proposed sale. It remains unclear whether the WRU will consider pausing any future deal with Y11 until after the outcome of Swansea Council's legal action, or if the CMA will decide to proceed with the council's case. The WRU has not specified which professional Welsh regional rugby side is most under threat of being cut in its plan to reduce from four to three teams, nor the exact terms it will outline by June 2026 for achieving this reduction.
We know we need to move to three clubs, nothing has changed there, for both financial and performance reasons, and so we can invest in the right way in our pathway to ensure the game's future.
But this move brings stability to the system where it is needed, and calmness and assuredness to our future plans.
We remain undeterred from our ambition to move to three professional sides, this is necessary for our game's future.
We have serious legal concerns about the proposed sale of Cardiff Rugby to Y11 and the WRU’s decision to cut the number of regional teams from four to three.
We believe the WRU’s actions breach competition law, and we intend to challenge their process in court.