UPDATE 2-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 Wales'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 so-called Project Reset represent the most radical change to regional rugby in Wales since its inception in 2003 with one outcome seeing the formation of a professional side in north Wales to keep the number of teams in Wales at four.

At present the regional sides in Wales are Scarlets, Ospreys, Cardiff Blues and the WRU-owned Dragons. The Welsh Rugby Players' Association (WRPA) issued a statement calling on the (PRB) to "secure players' futures".

"With such a seismic change seemingly now proposed for our professional game, we are deeply concerned about the impact it will have on the livelihoods of players and their families," WRPA CEO Andries Pretorius said. Rob Davies, who will replace fellow benefactor James as chairman, said he will start his new role by overseeing a legal and financial forensic review of the WRU's actions.

"The restructuring process itself has to be revisited, with appropriate checks and balances, independent oversight and transparency," he said. GRAND SLAM FOCUS

The situation has reached a head as Wales target a Six Nations Grand Slam after a memorable win over England. Thirteen members of the Wales national team could be affected by the restructuring.

"I struggled to get to sleep last night," former Wales and Ospreys lock Ian Gough told BBC Radio Wales. "Wales are going for a Grand Slam, a tough trip to Scotland at the weekend, and they drop this on everyone. I'm dumfounded."

Fans' group the Joint Supporters Group (JSG) -- an organisation representing the four official supporters groups for the regions -- was also monitoring developments. 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)

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