Welsh Rugby Union acquires Cardiff Rugby for £780k

The Welsh Rugby Union's (WRU) acquisition of the business and assets of Cardiff Rugby cost approximately £780,000, the governing body has confirmed. The Cardiff Arms Park outfit was placed into administration by their directors, and on Wednesday, the WRU confirmed it had taken control of the capital region. The acquisition costs for the club were made up of approximately £480,000 in cash and £300,000 of debt. WRU chair Richard Collier-Keywood said: "Despite being owned by the WRU, our intention is to treat Cardiff as an independent rugby club, similar to the other regional sides, and the WRU will assume the role of 'owner.' We wanted to provide a safe harbour whilst we draw breath and look at what's right in the longer term." Various key supplier contracts were transferred to the WRU subsidiary to enable the Cardiff Rugby business to continue to trade. The WRU states the transaction "safeguarded the jobs of around 150 people", including all players, while also allowing the business to continue to operate - now as a WRU subsidiary. All match tickets, including season tickets, together with sponsorships and hospitality will be honoured. Leighton Davies, chief operating officer of the WRU, and Steve King, WRU chief data and digital officer, have been appointed as directors on the Cardiff board. "At the time of the transaction, Cardiff Rugby Limited owed the WRU around £9.1m," added Collier-Keywood. "As part of its commitments in the new draft Professional Rugby Agreement (PRA25) the WRU has committed to reduce the debt generated during the Covid-19 pandemic by replacing it with longer-term capital." This amounts to around £3m for Cardiff and this transaction gave us the opportunity to do this at the same time by using £3m of the money we were owed and converting this into an investment into Cardiff, leaving our new subsidiary owing the remaining £6m to the WRU. "As part of the new PRA25, it is our intention to provide the other three professional clubs with similar debt relief." The collapse of Cardiff means professional rugby in Wales faces yet another delay to its long-awaited new funding plan. A deal between the governing body and its four regional sides appeared close to being finalised, although the WRU's rescue of Cardiff has put that initial agreement on hold. Following confirmation of their takeover of Cardiff, WRU chief executive officer Abi Tierney stated "it is unthinkable for us to allow the demise of professional rugby in the Welsh capital". Cardiff are ninth in the United Rugby Championship (URC). Matt Sherratt's side return to action in an all-Welsh URC fixture with Ospreys at Principality Stadium on Saturday, 19 April (15:00 BST).