BEDWAS have reached a compensation settlement with Merthyr over the summer signing of their captain Phill Rees.

The 26-year-old lock/back row signed for the big-spending SSE Swalec Championship promotion hopefuls despite being under contract with the Principality Premiership club.

Rees, who played for his hometown club Merthyr before heading to Bridge Field in 2012, had been named as Bedwas' club captain but accepted a lucrative offer from the Ironmen.

Bedwas chairman Mark Lewis said: "We were left with no alternative but to take legal action which we did. All our players are free to negotiate with whoever they wish when they are out of contract with us.

"Phill had willingly agreed new favourable terms with Bedwas RFC for the 2015/15 season and signed his new contract.

"He was a leading member of our formidable pack last season and was one of the key players we re-signed as we looked to improve on last season's impressive performance.

"It was a complete bombshell when we were told he had also signed for Championship side Merthyr as part of their attempt to gain Premiership status.

"We tried to resolve the matter through discussion but were ultimately left with no alternative but to commence legal action – which we did. As far as we are concerned when contracts are signed they are morally and legally binding on both parties.

"The issue goes far beyond the player and two clubs involved. If breaches of this nature are allowed to go unchallenged it would undermine the whole of the club and playing structure currently in place in Wales.

"Fortunately common sense prevailed and I am pleased to confirm that we have accepted an offer of compensation from Merthyr. Both clubs now consider this matter to be closed."

"I hope both the Welsh Rugby Union and other clubs in Wales learn the lessons from this case and make sure they take whatever robust action is necessary to prevent any recurrence of this sort of action. Bedwas most certainly shall."

Merthyr, who are leading the Championship with a sole defeat to Pontypool on their record, confirmed that compensation had been paid to settle the matter.