WRU TAKES OVER BLUES
CARDIFF BLUES TAKEN OVER IN MOVE THAT COULD BECOME PERMANENT, AS REGION EXPLORES NEW STADIUM PLAN
THE Cardiff Blues franchise is to be handed back to the Welsh Rugby Union, who will take over responsibility for the region from July 1.
The Union will assume a babysitting role while the Blues board focus on the proposed redevelopment of the Arms Park and the construction of a new multi-purpose covered arena.
It remains to be seen whether the takeover will be a temporary or a permanent arrangement.
The dramatic news was revealed at the Cardiff Blues Ltd Shareholders AGM and chairman Peter Thomas has spoken exclusively to WalesOnline to outline what lies ahead.
“It’s almost 50 years since we moved into where we are today and the Arms Park is in urgent need of redevelopment,” said Thomas.
“We want to put a multi-purpose sporting arena there which will be a facility for the future generations.
“To get to where we need to be is going to take a lot of money, a lot of investment, a lot of time and a lot of commitment. It will also mean the Arms Park being out of action for probably two to three seasons.
“As a consequence of that, we have been talking to the Welsh Rugby Union for their advice and support on how we manage that situation.
“We have said we want the WRU to babysit the Blues as a franchise for the foreseeable future.
“Now it may well be that will be a permanent arrangement and the governing body will take permanent control of the Blues as a region, as it is doing with the Dragons. But there is an invitation from the Union for private investors to come in and support the franchise at a later date.”
As for the timescale for the WRU takeover, Thomas said: “It’s agreed in principal that it will begin on July 1.
“We now have to work through the detail. All the staff are aware of the direction we are taking. They are all supportive and understanding of it, as is the Union.
“We have had to set ourselves a timescale as we have to focus on the development of the Arms Park.
“We are returning the franchise to the Union with no debt. We, the company, will continue to trade and will be honouring all our creditors.
“The Cardiff Blues board will remain as it is, running Cardiff Blues Ltd as a company.
“It has the Premiership team, the stadium and the commercial revenue. We will stay as we are. I will stay in my role as chairman and the board will stay in their role.
“But the running of the budget of the Blues in the future will be a matter for the WRU.”
Thomas added: “Private equity into the regional game in Wales over the last 20 years is probably approaching £80m and since the Blues won the Amlin Cup in Marseilles in 2010, the game in financial terms has changed massively.
“The average cost of a squad back in 2010 was about £3m. Now you can’t compete unless you’ve got a squad north of £6m.
“It’s not in the Welsh game at the moment. We can’t compete at the level we want to and focus our attention on the development. We can’t do both. The development is taking priority through necessity.
“The Union have approved the squad Danny Wilson wanted and the coaching side.
“This is very different to the Dragons, because all we are doing is handing the franchise back, for the reasons I have explained.”
One major issue for supporters will be the name of the pro team under WRU control, given the Newport name is to be removed with the Union takeover of the Dragons.
But Thomas insisted: “There is no question of it, the name Cardiff Blues will be there next season. It’s Cardiff Blues and Cardiff Blues it will remain.”