Actually, the WRU were willing to centrally contract players (y'know, pay the weekly wages), as long as they were allowed control of the players.
The regions refused. Instead they want the WRU to give them money which will then be spent as the regions see fit. In an ideal world, that is the ideal solution. But, given the track record of the regions - its no wonder the WRU are thinking "f88k that"...
But there was no material benefit for the regions to accept central contracts. The WRU give £6.2m to the regions for player releases. They wanted to sink all of that money instead into central contracts. The regions don't benefit materially in any shape, but they would lose control over contract negotiations (eg length of contract), how the money is spent, and even player movement, since the contracts would then be held with the WRU. It's a borderline offensive offer for the WRU to make.
Here's a few facts:
- The regions haven't a clue about the competitions they'll be in next year. About 1/3 of the season, I believe, is yet to be accounted for. It is
morally wrong, as a business, to enter into such uncertainty. If they agreed to the participation agreement, and matches could not be arranged to fill the gap, the regions would have to face mass redundancies to level the books. It would also weaken their squads tremendously. Instead, understandably, the regions want to try and find something to fill those gaps.
- The WRU isn't offering a better deal, in real terms, than that which exists. The regions
need growth, or they face losing their best players, year-on-year, to the growing English/French teams. The WRU recorded pre-tax profits of only £2.2m for 2012-13. So they probably cannot offer a significantly better deal even if they tried, perhaps without redirecting resources from wherever they already spend the money. The WRU is aiming to pay off its debts by 2021, which is an admirable way to run a union admittedly. But the point is that the WRU cannot offer enough to properly finance the Welsh game. So there's a point where the WRU needs to let go of control.
The money already given by the WRU is actually not at all that much. The money given out to the regions consist of the television money that the regions earned themselves, and contract release money that the regions should be entitled to anyway. This is why the WRU doesn't want to lose control: the money they give out to the regions is money that the regions earned/are entitled to.
As for the regions' track records, well a lot of their significant decisions have been made by the WRU. The problem is that when the WRU makes the regions' decisions for them, such as which competitions to be in and so forth, the WRU is looking at how this will benefit the national team first and foremost. The regions need to be allowed to make their own decisions so that they can look primarily at how to grow their audiences/finances and hence be stable.