WRU will not conclude takeover deal for Cardiff Rugby until after the Six Nations

It comes at Swansea Council ratchet up efforts to prevent the demise of the Ospreys

The Welsh Rugby Union will not conclude a takeover of Cardiff Rugby until after the Six Nations, as Swansea Council continues to ratchet up efforts to convince the union to abandon plans to reduce the number of rugby regions from four to three.

The council confirmed on Wednesday that it was seeking a High Court injunction to halt the takeover of Cardiff Rugby – which the union acquired out of administration last year – by the current owners of the Ospreys, Y11 Sports and Media. The local authority said this was designed to allow discussions to take place while the current four-team regional structure remains in place.

The injunction was scheduled to be heard today. However, ahead of the hearing, the Welsh Rugby Union gave an undertaking to Swansea Council that it will not conclude any deal with Y11 before March 16, a few days after final weekend of the Six Nations.

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The union confirmed Y11 as its preferred bidder for Cardiff Rugby in late January, which saw both parties enter into a 60-day exclusivity period – which could be extended – to try to finalise a deal. What is not clear is whether a deal could have gone unconditional before March 16, or whether it is tracking to be in a position for legal sign-off only after that date anyway.

If the union sticks to its current position – endorsed fully by its board and driven by its executive team – of reducing the number of clubs from four to three by Y11 effectively closing the Ospreys, Swansea would seek to reschedule the injunction hearing before March 16.

Last week the council also submitted a case to the Competition and Markets Authority (CMA), claiming the proposed takeover of Cardiff Rugby breaches competition law by unfairly restricting competition, reducing choice for supporters, and damaging Swansea’s economy.

The CMA has confirmed it has received a legal letter from the council. However, it has yet to decide whether the case has sufficient merit to proceed to the next stage, potentially involving a future judgment from the Competition Appeal Tribunal.

It is possible that this could be clarified by the CMA before March 16. However, if the CMA has not made any determination by that point, the council would seek as long an injunction period as possible. If a CMA decision is not forthcoming before March 16, the WRU and Y11 would be at liberty to finalise a deal after that date.

Even if the CMA concluded it was taking Swansea’s case forward, the union could still potentially finalise a deal in the confidence that it could defend any future case alleging it had breached the Competition Act.

If there is no recourse via the CMA, the council could consider pursuing legal action. However, if it lost, it could face a counter-damages claim by the WRU, particularly if Y11 walked away from a deal for Cardiff Rugby due to legal uncertainty, leaving the union having to continue to fund trading losses. That does not appear to be the council’s strategy, but rather one of using all the levers at its disposal to get the WRU to perform a U-turn.

If there are to be only three regions, then for the continuation of a team in Swansea, new ownership of the loss-making Ospreys would need to be realised ahead of an exit by Y11. Leader of Swansea Council Rob Stewart is understood to be looking to attract interest from potential new investors. If it wished, the WRU could also approach parties that expressed interest in acquiring Cardiff Rugby before Y11 was announced as the preferred bidder.

There is time, as four regions will continue for the 2026–27 season. However, any new Swansea-based region ownership could be conditional on winning a competitive bid with the Scarlets for the west Wales franchise from the WRU.

A spokesman for Swansea Council said: “The Welsh Rugby Union has this morning given written confirmation that it will not complete the deal with Y11 to buy Cardiff Rugby prior to March 16. It follows Swansea Council’s application for an injunction to pause the deal. The council is now awaiting a date for its injunction application to be heard at the High Court prior to March 16.”

The WRU also confirmed that it has given an assurance that a deal with Y11 for Cardiff will not take place before March 16.

It is being advised by law firm Northridge and barrister Jason Pobjoy KC.

The union said it is also aware that Swansea Council has raised concerns relating to Welsh rugby with the UK Competition and Markets Authority (CMA) and that it will address such concerns with the regulator “proactively and appropriately”.

A spokesman for the union said: “The WRU Bbard has worked in good faith over the past two years to create a sustainable way forward for Welsh rugby, in light of the significant financial and performance challenges we all face.

“We appreciate that these are difficult and emotive issues for everyone involved, but our focus remains firmly on the long-term health of the whole game in Wales and on continuing to try to work constructively with all stakeholders, including Swansea Council.”

The council’s position is that it has had no discussions with the union since a meeting on January 22 between WRU chief executive Abi Tierney and Ospreys CEO Lance Bradley, along with Mr Stewart and a number of senior council figures, including chief executive Martin Nicholls. The local authority maintains that Y11 signalled in the meeting that the Ospreys would cease to be a professional region beyond the 2026–27 season.

In its CMA case, the council says it has also been financially disadvantaged, having already committed £1.5 million to preparing St Helen’s for redevelopment, including the cost of relocating Swansea Cricket Club, which played at St Helen’s, to a new ground.

While not a legal agreement, the council has signed a pre-lease agreement with the Ospreys (Y11) for a 50-year lease at St Helen’s starting at an annual rent of £100,000, subject to inflation-linked reviews.

Speaking last week following the CMA submission, Mr Stewart said: “The WRU’s proposals would mean the end of the Ospreys as a professional men’s rugby region. This would be a huge blow to our city – economically, culturally and emotionally.

“Players, supporters, residents, community clubs and local businesses all deserve a fair and transparent process from the WRU. We cannot accept a situation where decisions are made behind closed doors to remove one of Wales’s four professional teams and leave Swansea without top-level rugby.

“We are asking the CMA to step in urgently to protect competition and give our city and region the fair treatment it deserves.”

With regard to the CMA, Swansea Council is being advised by barristers Nick De Marco, Mark Vinall and Tom Watret of Blackstone Chambers.