English and French clubs are threatening to break away from the European Cup.
The ERC board will be meeting on Wednesday to discuss a new deal to ensure the future of the European Cup.
Thus far talks have not yielded an agreement.
The English and French clubs are unhappy about the amount of Celtic League teams in the competition.
There are currently 11 Celtic League teams, 7 French teams and 6 English teams. The request from English and French clubs are that the teams should be more evenly distributed.
What makes this situation even more delicate is the fact that ERC has a broadcasting deal with Sky Sports extending to 2018, while Premiership Rugby sold their broadcasting rights to new channel BT Vision. The ERC does however consider this deal to be illegal as they claim that only they can negotiate broadcasting rights for the competition.
Furthermore the French clubs stated that they will also not play in a competition without the English clubs.