WALES’S four regions are optimistic they will not be troubled by European rugby chiefs’ decision to withhold yet another tranche of participation money from teams involved in their tournaments.
The Ospreys, Scarlets, Blues and Dragons are set to accept a £660,000 payment from the Welsh Rugby Union to cover the cash shortfall.
The regions were initially concerned at the suggestion from the governing body that the money was a loan, with the quartet of professional sides fearing such an arrangement might come with strings attached.
But they have concluded they are entitled to the £165,000-apiece payments under the terms of the 2009 participation agreement between themselves and the WRU, a document they reckon places the responsibility for distributing relevant competition funds squarely at the door of the union.
The potential for cash-flow concerns has come about as the prospect of a fresh European rugby competition edges closer.
European Rugby Cup Ltd are reported to be anxious abut the possibility of legal action from Sky, with whom it signed a contract extension two years ago. English clubs have an arrangement with BT to screen a new competition.
When the first instalment of money was held back last month, the regions were forced to find alternative funds to meet their wage bills.
They have now told the Welsh Rugby Union their contract is with them rather than with ERC, and it is up to the WRU to claim the money back from those who run the Heineken Cup and Amlin Challenge.
MARK ORDERS
Article source: http://www.walesonline.co.uk/news/wales-news/mystery-found-rugby-caps-deepens-6141154
Wales"s rugby regions to accept £660000 payment from Welsh Rugby Union to ...
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