Earlier this 12 months, the WRU had beforehand said there was sufficient cash to fund 4 skilled sides equally.
Tierney says issues modified when Cardiff went into administration in April and was taken over by the WRU.
The present skilled rugby settlement (PRA) that underpins the Welsh skilled sport runs out in June 2027 and was because of be outdated by a brand new five-year deal.
The deal has been agreed by Cardiff and Dragons, however has nonetheless not been signed by both Ospreys or Scarlets, who say “key points” haven’t been resolved.
“When Cardiff occurred, that confirmed simply how challenged the system is,” mentioned Tierney.
“It made us all pause, together with the areas. That meant we weren’t capable of give adequate reassurances to 2 of the areas for them to signal.
“So when you do not have a deal, it is time to consider what to do completely different.”
Tierney say a drop in funds has affected their earlier forecasts.
“After we modelled the unique provide, it was primarily based on the numbers on the time however numbers have gone the unsuitable manner since then,” mentioned Tierney.
“We should always have accomplished a more durable draw back however the headwinds which have affected rugby globally since weren’t mirrored, particularly competitors revenue and media rights, whereas prices have additionally gone up with nationwide insurance coverage, participant wages and prices of operating a stadium.
“We have seen income taking place and prices going up. It means the hole to make up is bigger for the areas. There’s solely to this point the cash goes.”
Ospreys and Scarlets are contemplating authorized motion in opposition to the WRU about their dealing with of the Cardiff scenario.
“That is all the time a priority,” mentioned Tierney.
“They’re all nonetheless speaking to me about what’s in greatest curiosity for Welsh rugby and need to discover a manner ahead.
“I stay optimistic we are going to discover a manner by means of this and might keep away from authorized motion as a result of that is the worst factor that may occur for Welsh rugby with delays and prices concerned.”
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