Swansea face an uncertain future

The four-time Welsh champions have blamed the move on a drastic reduction in their income under the new structure.

Job losses appear inevitable, with some player contracts certain to be terminated leaving the star players in search of new clubs.

From next season, Swansea and their eight fellow Welsh Premiership clubs will become semi-professional teams.

This is part of the Welsh Rugby Union's plan to form regional professional sides for Celtic League and Heineken Cup competitions.

Swansea's current playing staff includes the likes of Welsh internationals Scott Gibbs, Mark Taylor, Colin Charvis and Ben Evans.

They are due to have a meeting with the club on Tuesday afternoon in order to find the severity of the situation.

BBC Wales believes the players could be asked to take a 70 percent pay cut.

The process will protect the club and secure its future Swansea chairman Roger Blyth

Swansea chairman and former Wales full-back Roger Blyth, said: "David Moffett's (WRU group chief executive) plan for regional rugby in Wales is now taking shape.

"As such, our funding will be reduced from its current annual level of almost �1m to just �50,000 a year.

"The WRU has stated that it is up to the current Premier Division clubs to handle their own liabilities in the wake of the new regional teams being formed, and that no compensation will be on offer.

"As a result, Swansea now has on-going liabilities which cannot be met - primarily in the form of player contracts.

Termination of contracts

"The professional advice we have received is that the most responsible and professional course is to apply for a temporary administration order.

"This will allow for the club's liabilities to be restructured, leading to a Company Voluntary Arrangement between the club and its creditors.

"The process will protect the club and secure its future."

Blyth admitted: "Termination of contracts will be the regrettable, but unavoidable, outcome for a few of our current squad.

"The bulk of our first team squad, however, are being offered contracts at reduced rates until the end of the season.

"These players will now, effectively, be playing for positions and contracts in the new regional team that emerges.

Blyth added: "Other Premier Division clubs must now decide whether to put self-interest aside, in whatever way that means for them, and back David Moffett in the successful restoration of Welsh rugby."