1998-99 rebel season

The 1998–99 rebel season in rugby union occurred when two clubs affiliated to the Welsh Rugby Union (WRU), Cardiff RFC and Swansea RFC, refused to play in the WRU-sanctioned Welsh Premier Division that season and instead opted to play friendly matches against clubs from the English Premiership. The two clubs' position came about after the WRU rejected requests by the club to pursue changes to the league structure in Welsh club rugby and in particular to set up a cross-border league involving other clubs in Britain, and the two clubs refused to sign up to a loyalty agreement with the WRU committing them to the current league setup.

The two clubs were removed from Wales' entry into the 1998–99 Heineken Cup and would later be fined £150,000 each by the WRU for three breaches of their regulations. The English Rugby Football Union (RFU) didn't sanction the rebel games, but were accused by rugby union's world governing body, the International Rugby Board (IRB), of not doing enough to prevent the fixtures taking place and had £60,000 of IRB funding withdrawn.

At the end of the season, an agreement was reached between the two clubs and the Welsh Rugby Union that allowed for their return to the Welsh Premier Division, with clauses that would allow them to leave the Welsh league and join the English Premiership in the event a cross-border British league was not set-up by the 2000-01 season. Despite this league not coming to fruition, the two clubs did not exercise their right to leave and remained in the Welsh structure.

Cardiff RFC and Swansea RFC had both been members of the Welsh Premier Division since the formation of the league system in Wales in September 1990. In August 1995, rugby union became a professional game, which allowed payment or benefits to be made to players. Following the change to professionalism, several of the clubs playing in the Premier Division began experiencing financial difficulties. Llanelli RFC sold their ground, Stradey Park, to the WRU in 1997 to raise money,Neath RFC were taken over by a WRU-owned subsidiary Gower Park Ltd. in May 1998.Pontypridd RFC and Bridgend RFC were also in financial difficulties.

...
Wikipedia