UPDATE 1-Rugby-Ospreys chairman quits as Welsh rugby mulls changes

Ospreys chairman Mike James resigned on Tuesday amid speculation that the Welsh regional side could merge with Scarlets as part of a drastic overhaul of the country's professional game.

In a statement on the club's website James cited "catastrophic mismanagement" by the Welsh Rugby Union (WRU). James did not mince his words when announcing his decision before a Professional Rugby Board (PRB) meeting in Cardiff to discuss the future of the regions.

"None of us doubt that regional rugby requires restructuring in order to ensure the long-term sustainability of the game," James, who will also surrender his role on the PRB, said. "The way this has been handled, however, is nothing short of chaotic, resulting in a fatal combination of uncertainty, conjecture and insecurity now hanging over regional rugby's future.

"We now have the worst of all worlds -- a lack of clarity, a lack of transparency and a total inability to plan ahead." The WRU's plans, dubbed Project Reset, represent the most radical change to regional rugby in Wales since its inception in 2003 with one possible outcome seeing the introduction of a professional side in north Wales to keep the number of teams in the country at four.

The PRB is made up of representatives from the WRU, as well as regional sides Scarlets, Ospreys, Cardiff Blues and the WRU-owned Dragons. Fans' group the Joint Supporters Group (JSG) -- an organisation representing the four official supporters groups for the regions -- was also monitoring developments.

"As the Joint Supporters Group we have met tonight with Martyn Phillips and Ryan Jones from the WRU/PRB," the group said in a statement on Twitter on Monday. "We have had an open and frank discussion about Project Reset and have been informed that there is a critical meeting tomorrow. We will make a further joint statement after the outcome of that is known."

Ospreys and Scarlets are two of Wales' most successful sides, and both teams consist of a large number of Welsh internationals. Former Ospreys, Wales and British and Irish Lions wing Shane Williams gave his backing to the proposed merger in comments published by the Daily Telegraph.

"To be honest, if a merger was going to happen then this would make as much sense as anything," he was quoted as saying. "I would prefer the Ospreys to remain as they are with some extra help in an ideal world, but it's clear that is not going to happen.

"If the Ospreys would have moved east to merge with Cardiff Blues then I don't think that would have worked. Merging the Ospreys and Scarlets will at least create a quality region." Details on the name of the team, where it would play and who would coach the regional side are yet to be finalised and will likely form part of the discussions at Tuesday's meeting. (Reporting by Simon Jennings in Bengaluru; editing by Sudipto Ganguly and Christian Radnedge)