From this date, Wales was represented by a smaller number of regional teams in both the Celtic League and European Cup competitions, where previously the top club sides were entered into them.
[3] The Llanelli Scarlets were founded in 2003, as one of the five (now four) regional teams created by the Welsh Rugby Union (WRU).
[7] Their main home ground is the Swansea.com Stadium, Swansea, although some smaller profile games have been played at the Brewery Field, Bridgend.
The Ospreys are the most successful Welsh team in the history of the Celtic League or Pro12 tournament, having won the competition four times.
In 2007, they reached the semi-finals of the European Challenge Cup, losing to French side ASM Clermont Auvergne 46–29.
In addition, the club game in Wales had struggled to cope financially since Rugby Union turned professional in 1995.
[10] Clubs struggled for support, with reigning champions Swansea attracting a crowd of just 932 for a home game against Pontypridd in late 2001.
Six of the clubs that made up the Welsh Premiership suggested that they compete in a reduced size Premier League.
[10] In September 2002, the WRU and the clubs that made up the Premiership agreed to discuss and decide on a future structure for the game.
At a meeting held between the WRU and the eight Premier League clubs on 5 December 2002, Terry Cobner, the WRU director of rugby, and David Moffett outlined plans for a regional system similar to that used by the Irish Rugby Football Union.
[16] Despite Llanelli's intention to pursue legal action against the Union if the plans went ahead,[17] an Extraordinary General Meeting of the WRU was scheduled for 23 February.
[17] All 239 member clubs of the Union had a vote of equal weighting, with a simple majority required for the changes to be implemented.
[20] Three days later, the WRU announced that a consensus had been reached between them and the clubs to implement a five team regional structure.
[21] The introduction followed much controversy, as clubs disagreed with the Welsh Rugby Union (WRU), the governing body of the sport in Wales, over many issues, including the forming of partnerships, funding levels, loss of status and both the number and locations of regional teams.
On 1 April 2003, David Moffett announced that the clubs and Union had come to an agreement to implement the five regional teams, which had been approved by the WRU Board of Directors.
[22] The details were submitted to the Heineken Cup organisers, ERC, by the 2 April deadline, and the process of setting up companies to own the regions began.
Llanelli Scarlets and Neath-Swansea Ospreys dropped their geographical location in their name to become Scarlets and Ospreys respectively whilst Gwent Dragons added "Newport" to their name as Ebbw Vale RFC dropped out and were replaced by the WRU.
This change of identity coincided with the WRU acquiring Newport RFC's 50% stake in the regional side.
[24] The regions have been reasonably successful in the United Rugby Championship, with Welsh teams winning on 6 separate occasions.
The Ospreys are the most successful Welsh team in the history of the league with four titles, a record that was eventually shared and then surpassed by Leinster.
[25] However, Cardiff Rugby have been successful in the Challenge Cup (the second-tier European competition), winning the tournament on 2 separate occasions.
Since the demise of the Celtic Warriors, the South Wales Valleys, traditionally a heartland of Rugby, has been without a representative team.