It’s a term which has been bandied around increasingly in Welsh rugby circles in recent months - Project Reset.

You often hear it mentioned in almost half-whispered tones and there’s certainly an element of mystery surrounding it.

So what exactly is this project all about? What is it looking to achieve and why is it so important to the future of the professional game in Wales?

Rugby correspondent Simon Thomas has been digging away behind the scenes and now provides the answers.

So what exactly is Project Reset?

Well, as the name suggests, it’s really a refresh or a fresh start.

The idea was to look at the professional game in Wales and decide on the best way forward.

Almost inevitably, that would involve replacing the existing Rugby Services Agreement between the WRU and the four regions.

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(Image: Huw Evans Picture Agency)

The Union opted to bring in a consultant by the name of David Lovett to look at the state of the game and offer some financial expertise and an independent pair of eyes.

Essentially, what he concluded was the regional game needs more money.

It was with this in mind that the Union set about looking at how that could be achieved and what form the new deal should take.

What’s the existing arrangement then?

It’s all laid out in the Rugby Services Agreement.

That was the peace deal which was struck between the Union and the regions in August 2014 to bring an end to more than a year of civil war.

It was due to run through to 2020, but the feeling for a while has been that it’s not really fit for the current situation.

For one thing, it was born out of a period of distrust and animosity, whereas we now have a mood of relative harmony.

It also didn’t really provide sufficient financial clout for our regions to be able to compete consistently with French, English and Irish big spenders.

So, Project Reset has focused on putting a new agreement in place, ideally before the end of this summer.

How is the new deal going to be different?

Well, for one thing it’s going to have a new name.

It will be called the Professional Rugby Agreement.

So it’s goodbye to the RSA and hello to the PRA.

The new deal is yet to be signed off, but the word is we are very close and it’s going to be a very different kind of arrangement.

The key aspect now will be everyone working together.

The way the RSA was phrased was something of an “us and them” approach or even master and pupil. It was a case of “you will do this” to a degree.

Now the idea is to move from control to collective thinking.

The central element of the new plan is how the five entities - Union and four regions - can work together for the betterment of the professional game.

With this in mind, a set of criteria were drawn up towards the end of last year.

Four areas were identified - governance, coaching, commercial and development/community.

The idea was that all five entities had to meet prescribed targets in those areas ahead of a new funding model being put in place.

And that’s what we’ve seen happening over the past few months.

Part of the agreement is that the PRA should be a completely fresh start.

As such, one of the requirements was that the regional balance sheets should be cleaned up.

We have seen that happening at Cardiff Blues, where Peter Thomas has agreed to write off the estimated £14m he has poured into the business over the years.

He is also stepping down as chairman as part of the aforementioned governance reform.

Down at the Scarlets, letters have gone out to shareholders outlining a proposal for directors loans, totalling more than £8m, to be converted into shares.

Originally, the suggestion was the Union would take an equity share in the regions in return for them clearing their debts.

They have now moved away from that, but the balance sheets are being addressed.

So the groundwork is being laid for the PRA.

(Image: Â©INPHO/Billy Stickland)

What are the financial details of the new deal?

It’s best to start by looking at the current one.

The last published accounts for the year ending June 2017 showed the WRU distributed £21m to the regions, with £9.2m of that being generated by the teams themselves through the competitions they play in.

That meant around £12m coming out of central funds, with that being a payment for services provided, such as making players available for international rugby and sticking to overseas quotas.

While competition revenue has increased in the past year though the South African TV deal for the PRO14, there’s an acceptance that more money has to be found again if the regions are to be competitive.

With that in mind, an improved funding arrangement has already been agreed for next season.

That will see an additional £2.4m going to the regions from the WRU, with the Scarlets getting the biggest share and the Blues and Ospreys receiving an equal increase.

The Dragons won’t get an uplift as the Union have covered debts incurred over the past year.

(Image: Huw Evans Picture Agency)

It all means for the coming season the Scarlets are set to have a playing budget in excess of £6m, the Ospreys £6.2m, the Blues £6m and the Dragons around £4.5m.

The £2.4m increase comes ahead of the PRA being signed, but it does point to the future funding system.

Under the RSA, the basic principle has been equal distribution, with all four regions getting the same.

Now we are moving to equal opportunity, with the regions being rewarded for performances both on and off the field and for delivering players to the Wales set-up.

They are all drawing up business plans and they will have to meet those, both in terms of results and commercial revenue, to obtain increased funding via the PRA.

Every year, the situation will be reviewed and payments will be based on how the regions are delivering.

Essentially, it will be a reward-based system, with targets to meet in order to release the cash.

Where will the additional funding come from?

In the short-term, the extra £2.4m for next season is made possible by the Union having had a good year financially.

It’s understood their income has gone up from £74m to more than £90m.

But, in the longer term under the PRA, it will be about the pro game generating more income itself.

With this in mind, a new body is to be set up, the Professional Rugby Board.

It will feature one representative from each of the four regions, two from the WRU - probably chief executive Martyn Phillips and finance director Steve Phillips - plus two independents.

(Image: Huw Evans Picture Agency)

That body will be responsible for running the professional game and looking at ways of funding it.

One key element will be the five entities working together to generate more income.

They will operate as one entity to make savings on things like supplies and when it comes to bringing in sponsorship and commercial revenue.

In the long term, there may be a move towards borrowing on the Principality Stadium to bring in extra money.

But first they want to get the businesses working well and staying clear from debt, otherwise it would be a case of throwing good money after bad.

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Essentially though, the new deal is all about working collectively and the PRA will outline what the five entities expect of each other.

For once in Welsh rugby, it really does seem we are all in this together.