The Welsh Rugby Union has announced plans to cut the number of professional teams in Wales to three.

Making the announcement on Friday afternoon, the WRU said its board unanimously agreed to implement a new whole-system approach to elite rugby, designed to deliver long-term success through rugby alignment across all levels of the game and financial sustainability.

Speaking at a press conference in Cardiff’s Principality Stadium, Chair of the WRU Board, Richard Collier-Keywood, said; “We have heard loud and clear from the consultation that people want a long-term fix and not a short-term patch. We have listened and we agree.

“Our decision is that the future structure of elite men’s rugby will be based on three professional men’s clubs, replacing the current four-team model, alongside two women’s elite teams.”

The WRU confirmed that it proposes to grant three licences for men’s clubs; one for the capital, one for West Wales and one for East Wales.

In a statement the WRU said: "There will be equal funding for the three team squads starting at £6.4M and rising to £7.8M per annum. This decision reflects the need to concentrate talent, improve competitiveness, and ensure financial sustainability."

Reacting to the news, Welsh Conservative Shadow Cabinet Secretary for Culture, Tourism and Sport, Gareth Davies MS, said: “Rugby is part of our culture, identity and the fabric of our communities, especially in areas where regional sides have already struggled to survive. Reducing the number of professional teams would be another hammer blow to fans, players, and the next generation of Welsh talent.

“It is shameful that it has got to this point, stripping back the club footprint and identity in Wales. Instead of shrinking the game, the WRU should focus on strengthening its foundations, building up regional structures, investing in grassroots clubs, and ensuring that every part of Wales has a fair chance to compete at the top level."

Collier-Keywood, continued: “Any change is difficult, and we have current contractual obligations to the URC and our professional clubs that we will honour in the absence of new agreements. We want to involve the URC and the owners and managers of the current clubs in how we get to our chosen destination. This may take some time, but we will work hard to get this done as quickly as possible. “If, however, it ultimately proves impossible to reach a consensus on how this change will happen then the WRU will run a fair and transparent tendering process for the three licences. We have already guaranteed that all existing player contracts will be honoured.” The WRU confirmed additional investment of £40 million across five years in Welsh rugby from the elite level to the pathways. £28 million of this will go into:

Improved coaching and education

Men’s national academy with two regional training centres

12 men’s Player Development Centres

A women’s national academy

Three women’s Player Development Centres with nine satellite locations

Additional investment in Super Rygbi Cymru and Celtic Challenge teams

A new Talent and Insight Management Department which will manage talent identification, recruitment, retention and development across both men’s and women’s rugby.

Collier-Keywood, added: “Our intention is that we will work closely with the owners under a new licence agreement that will see them retaining overall control of the clubs and their commercial activity whilst the rugby operations and the funding for this will be the responsibility of the WRU. The details of this will be worked out with the clubs but our desire is to align to improve performance of both the national teams and the professional clubs. “We have carried out an analysis of population demographics, community club distribution, registered community player numbers and potential future rugby players, coaches, university and school locations and physical rugby infrastructure across Wales. The geographical distribution of licences for the three future clubs in this new model will need to take into account these factors. Our view is that this will lead to licences being issued with one in the capital, one in the West and one in the East.”

WRU director of rugby and elite performance, Dave Reddin, said: “This new system has been built from the ground up to drive success with every part aligned and every decision designed to raise standards, restore the DNA of Welsh rugby and deliver the step forward in performance that everyone in Welsh rugby craves.

“As a result of the consultation, it has moved on for good reason from the original two-club model proposed. The consultation confirmed that change is needed, and this model focuses investment where it makes the biggest difference on the pitch. But we also heard the concerns of players and the deep passion for the heritage of our teams. “On balance we feel that this three-team structure protects that for most while managing a necessary reduction in a fair and respectful way. This creates a sustainable, joined-up system.” The WRU also announced significant investment in the women’s game, including two elite women’s teams, a Women’s National Academy, and a new domestic league. Independent Non-Executive Director and Chair of the Women’s Rugby Committee, Amanda Bennett, said: “This is a transformative moment for women’s rugby in Wales. “The WRU’s commitment to funding and infrastructure will help us attract and retain top talent and build a competitive domestic structure. We all saw the amazing success of the Women’s World Cup tournament this year. This is an area for growth in the sport both globally and in Wales.”

MPs will question the Welsh Rugby Union (WRU) on the outcome of its consultation on the future of Welsh rugby in an evidence session which will also explore the sport’s wider economic and cultural importance to Wales.

Along with representatives from the governing body, the Welsh Affairs Committee session in January will also feature witnesses from other sports bodies such as Sport Wales and figures from the rugby world.

Chair of the Welsh Affairs Committee, Ruth Jones MP, said: “With rugby woven into the fabric of life in communities up and down the nation, the proposed structural changes announced by the WRU today will resonate far beyond the pitch. Our session in the new year will explore how the restructuring will affect the future of the game in Wales, while examining the wider importance of the sport to both our culture and economy.”