The Welsh Rugby Union (WRU) will enter into a “period of exclusivity” with Ospreys owners Y11 Sport & Media to discuss the prospect of them buying rivals Cardiff.
The WRU held a board meeting on Monday where BBC Sport Wales understands the executive presented the option of Y11 as their preferred bidder for Cardiff.
There was another consortium bidding, with former Cardiff director Martyn Ryan involved in a group that includes three television and film producers based in the United States of America.
After temporarily going into administration in April 2025, Cardiff were taken over by the WRU with the governing body seeking new investors.
Welsh rugby’s governing body has since proposed cutting one of its four men’s professional sides and the option of Ospreys owners taking over Cardiff, and the two sides effectively becoming one, would allow that to happen.
No deal has officially been signed yet, with negotiations continuing over the next few weeks and the WRU not stating who the preferred bidder is.
A statement read: “The WRU board met for its January meeting today and considered the recommendation from the executive leadership team on the sale of Cardiff Rugby.
“The board reviewed in detail the final two bids and unanimously approved the proposal to move forward with a preferred bidder into an exclusivity period.
“Following this decision, the WRU has obligations to liaise with a number of stakeholders over the next few days.
“We will then discuss the decision with the two bidders and the management of Cardiff Rugby and expect to be in a position to have completed this by next week.
“The WRU hopes to finalise the detailed negotiations with the preferred bidder and sign a binding agreement within a matter of weeks.”
If a deal with Y11 was to be achieved, Ospreys fans will fear they could eventually disappear as a professional outfit.
That would not happen before the WRU could do a deal with the United Rugby Championship (URC) to reduce the number of Welsh sides in the league, with a replacement currently being sought.
The four professional sides, including Scarlets and Dragons, could still be in existence for the 2026-27 season.
If a deal is confirmed, the Y11 ownership issue would have to be looked at because World Rugby regulations prohibit organisations from owning two sides in the same competition.
Regulation 14 states: “No individual, body corporate, partnership, trust or any other entity may directly or indirectly own or control more than one club except with the prior written consent of the Union concerned, or where clubs from different Unions are involved, the written consent of the Unions concerned and World Rugby.”
It remains to be seen what would happen with the proposed redevelopment of the St Helen’s ground in Swansea which has been earmarked as the Ospreys’ new home.
Swansea Council has backed the scheme but was waiting for news of Welsh rugby’s revamp before releasing funds of more than £4m for the project to start the redevelopment.
It is an uncertain time in the domestic game in Wales, with the WRU announcing in October 2025 they proposed to grant three licences for men’s professional clubs.
There will be one in Cardiff, one in the east and one in the west, which could have resulted in a survival fight between Swansea-based Ospreys and Scarlets in Llanelli, before the Y11 option of buying Cardiff emerged.
The WRU and Y11 have both declined to comment on this possibility, fuelling fears of Ospreys supporters about their side’s future.
Cardiff fans have also told the WRU they do not favour their team being bought by the Ospreys owners.
WRU chief executive Abi Tierney and chair Richard Collier-Keywood have been called to Parliament in London on Wednesday to give evidence to Welsh politicians on the future of Welsh rugby and are expected to be quizzed on this Cardiff issue.
Representative from Cardiff and Ospreys supporters groups, along with Scarlets and Dragons, have also been invited to give their opinion to the Welsh Affairs select committee in Westminster.
