What next for the Blues and Dragons? SIMON THOMAS has the answers
Rugby correspondent Simon Thomas answers the key questions on the WRU takeover proposals for the Cardiff Blues and the Newport Gwent Dragons and what happens next
WHAT’S THE BACKGROUND TO THE PLANNED WRU TAKEOVER?
IT’S twofold really.
Chairman Peter Thomas and other benefactors have poured millions of pounds into Cardiff Blues over the past 15 years.
But it’s come to a point where they really don’t feel able to keep on doing that, especially with it being harder and harder to remain financially competitive as playing budgets spiral in other countries.
Back in January, Thomas warned of a car crash looming in Welsh regional rugby and the need for a new model for the professional game.
There was initial talk about a pooling of regional resources and a new company being set up, with the WRU taking an increased role.
That couldn’t be agreed upon among all four regions, so what we have ended up with is individual arrangements.
We all know about the proposed WRU takeover of the Dragons and now we have had the Blues bombshell, with Thomas revealing the franchise – as he’s now terming it – is to be handed over to the Union from July 1.
This move coincides with plans to redevelop the Arms Park with the construction of new multi-purpose covered sports arena.
Thomas’ stance is that is going to take a lot of time and commitment from the Cardiff Blues board and they can’t oversee that as well as running the rugby operation.
So, that operation is now set to be handed over to the WRU.
WILL IT BE A PERMANENT TAKEOVER BY THE UNION?
THOMAS has talked at various times about the WRU ‘babysitting’ the Blues during the two or three-year redevelopment period.
But he has now acknowledged that it may well be a permanent arrangement. And that’s certainly how the Union see the situation, as I understand it.
They could choose to bring private investors on board at some point in the future, but that would be their call.
The reality is we are talking about a permanent takeover here.
So rather than babysitting, it’s more a case of a midwifery role for the WRU, as they oversee a rebirth of the professional team, and then take on the parenting duties.
WHAT WILL HAPPEN TO THE CARDIFF BLUES’ STAFF, BOTH ON THE PLAYING AND THE NON-PLAYING SIDE?
THEY will transfer over to become employees of the WRU, with their wages being paid by the governing body.
The indications I am getting are the Union are happy with the coaching set-up at the region and have given the OK to the squad-spend for next season.
Clearly, they are set to have a significant role to play in future recruitment, working in tandem with head coach Danny Wilson.
So, on a day-to-day basis, the same people will run the rugby operation, but it will come under the control of the WRU.
WILL THE CARDIFF BLUES’ NAME BE RETAINED?
YES, certainly for the foreseeable future.
Supporters will have major concerns on this issue, especially with the Newport name to be ditched amid the WRU takeover of the Dragons.
But Thomas is insistent the team will continue to be known as Cardiff Blues and it does seem as though the Union are ready to go along with that.
There is a recognition of the value of the Cardiff brand and also about the potential impact on crowd numbers if the name were to be dropped.
So, the likelihood is the side will continue as Cardiff Blues, certainly until the Rugby Services Agreement comes to an end in 2020.
It will then be a case of reviewing how successful the operation is proving.
WHO WILL RECEIVE THE GATE RECEIPTS FROM CARDIFF BLUES’ HOME MATCHES?
THOSE would almost certainly go to the new entity running the rugby operation, in other words, the WRU.
Clearly, if the redevelopment of the Arms Park goes ahead, then the Blues will need a new temporary home for two to three seasons.
There is an obvious option available next door in the shape of the WRU-owned Principality Stadium.
WHAT WILL THE ROLE OF THE EXISTING CARDIFF BLUES LTD BOARD BE?
WELL, Thomas has made it clear the board will remain in place and that he will stay on as chairman.
But, with the professional rugby operation passing to WRU control, Cardiff Blues Ltd will essentially become a property company, focusing on the ground redevelopment project.
They will also retain responsibility for the Cardiff RFC semi-pro side and for the stadium, while you would imagine they would seek to keep hold of the lucrative car park income.
WHAT ARE THE WRU SAYING ABOUT ALL THIS?
WRU chief executive Martyn Phillips: “The Blues have had a conversation with us to say they might need a different kind of support. That conversation is embryonic.
“There is a huge amount of detail to work through there, options to be considered. It will be weeks, if not months, before we work out how best we can support the Blues. I don’t want us to get ahead of ourselves on that.”
SO IS THE WRU TAKEOVER CERTAIN TO HAPPEN?
WELL, it’s far from being a done deal yet.
Vested parties will be pouring over the legality of the takeover, so it may be pushing it to get everything in place by July 1.
And Cardiff Athletic Club members and many fans of the pro team will be looking for firm assurances on the team name. But there is an intention to do a deal and it does look as though we are moving towards a Union takeover of the rugby operation. SO, we’ve had the vote and the WRU takeover of the Dragons has received the green light. But what happens next with the Gwent region and what are the plans for Rodney Parade?
FIRST THINGS FIRST, HOW DID THE VOTE GO EXACTLY?
WELL, it needed a 75 per cent Yes vote from Newport RFC shareholders for the WRU takeover of the Dragons and Rodney Parade to go ahead.
It was always likely to be close, with such a big approval rate required, and so it turned out.
Finally, at about 9.20pm on Tuesday – nearly two-and-a-half hours after the EGM began – the result came though.
Of the 429 votes cast, it was 351 for Yes and 78 for No, which worked out at 81.09 per cent in favour of the takeover.
When WRU chief executive Martyn Phillips, Dragons chief executive Stuart Davies and Newport chairman Will Godfrey sat in front of the press
minutes after the announcement, one word summed up their reaction – relief.
Listening to Davies talk, in particular, it was clear it had been a pretty emotional night for all involved.
“The human element came across in that moment when the result was announced,” said the former Wales No 8. “When you saw the staff in the room, you realised what it meant to them.
“There was a bit more at stake than just rugby venues and rugby clubs.
“I hadn’t quite realised how much relief there would be at the end when we got the vote.
“It was immense. It will be nice to wake up in the morning and start having positive thoughts.”
SO WHAT DOES THE WRU TAKEOVER ACTUALLY INVOLVE?
THE vote gives the green light for the takeover to go ahead and the plan is for it to be completed by July 1, with all the legal niceties to be observed.
The Union already had a 50 per cent share in the Dragons, now they will take full control of the region.
So, the staff, both on and off the field, will transfer to being employees of the Welsh Rugby Union.
As for Rodney Parade, the Union’s purchase of the ground from Newport RFC will now go ahead.
They are buying it for £3.75m, although the actual amount received by the club will be £2.25m as £1.5m is owed to creditors including the Union.
As part of the deal, benefactors Tony Brown and Martyn Hazell are writing off the majority (84 per cent) of the £5.63m they are owed.
WHAT WILL THE UNION-RUN PRO TEAM BE CALLED?
THE expectation is the Newport name will be ditched from the team title and the unwieldy Newport Gwent Dragons replaced by just Dragons.
That was the indication from WRU chief executive Martyn Phillips when he first outlined the takeover proposal back in March.
There’s a clear attempt here to have a side the whole of the region can identify with and move away from a “superclub” scenario.
Whether it will result in increased attendances remains to be seen.
Will more people now come down from the Gwent valleys to watch the team play at Rodney Parade?
Conversely, will some existing Newport-based fans turn their backs on the rebranded side? Only time will tell. Phillips has made it clear the project will only work if people get behind the team.
WHAT ARE THE PLANS FOR THE PROBLEMATIC RODNEY PARADE PITCH?
WE have all seen how the playing surface has struggled to cope with the demands upon it.
Accommodating three sides – the Dragons, Newport RFC and Newport County – has really taken its toll.
Matches have had to be called off or abandoned, with the surface suffering from serious waterlogging at times.
Ideally, the WRU would like to install an artificial 3G pitch which would resolve the problems and provide a facility that can be used pretty much seven days a week.
But, with Newport County having pulled off the great escape to stay in League Two, that’s not possible as they can’t play on an artificial surface under Football League rules.
It did seem remedial action was going to be limited to drainage work.
But following the Yes vote, WRU chief Phillips revealed the plan now is to install a hybrid Desso-style pitch, similar to the one at the Principality Stadium.
That involves natural grass being reinforced by artificial fibre to provide greater stability and durability.
Outlining the state of play, Phillips said: “We do plan to address the pitch issue over the summer. Clearly that needs to be acceptable to Newport County, which it will be.
“As we have said consistently, we would have liked to put artificial down, because we want this to be a vibrant rugby hub. We can’t do that at the moment.
“So, it will be a form of Desso-like pitch. We have identified a manufacture. We are working with them at the moment. It will be a hybrid pitch. It is going to be quite a chunk of money to do that.”
IS THERE LIKELY TO BE ANY OTHER REDEVELOPMENT WORK ON THE RODNEY PARADE SITE?
IT’S a pretty safe bet there will be.
You are talking about a fair plot of land and there’s clearly scope for development at the clubhouse end of the ground.
That would enable the WRU to recoup some of the money they have spent on buying the property.
“We are investing several millions in here which we hadn’t planned to, in terms of purchasing the ground,” said Phillips.
“We can’t sustain forever that level of investment, so the only way of getting that back is to redevelop this end of the ground, so we will look to do that over the next couple of years.”
WHAT WILL HAPPEN ON THE COACHING FRONT?
THE existing coaching staff, headed up by Kingsley Jones, will stay in place.
Jones is assisted by forwards coach Ceri Jones and backs coach Shaun Connor, with Huw Bevan acting as elite performance manager.
That group will remain at the helm, but it’s likely there will be additional support available from the WRU. As for the Dragons board, no decision has yet been made on the make-up of that, although Stuart Davies looks set to continue as chief executive.
WILL THERE BE MORE MONEY TO SPEND ON THE PLAYING SQUAD?
IT’S hardly a state secret that the Dragons haven’t been spending as much as they are supposed to on their squad.
Under the terms of the Rugby Services Agreement with the WRU, the regions are meant to spend a minimum of £3.5m on playing staff.
The financially-strained Dragons have been operating below that figure for some time.
Depending who you speak to, it seems their spend is somewhere between £2.8m and £3.2m.
Under Union control, it’s a fair bet they would at least get up to the £3.5m agreed minimum. That’s not a huge leap, but it does allow for a degree of squad strengthening.
Gavin Henson and Zane Kirchner have already been brought in to add international experience to the backs and the front five could certainly do with reinforcing to stiffen the set-piece.
IS THERE ANY LONG-TERM GUARANTEE OVER THE DRAGONS’ FUTURE?
IN a word, no. But then the same could be said for any team in Wales.
The WRU have made it clear they will not persevere with an operation that is consistently losing money. So, the Dragons’ project has to stack up financially for it to continue longterm.
“The reality is we have to get it to work,” said Phillips.
“I have been at pains not to give any guarantees that I can’t live up to.
“We have got to make sure that financially it’s sound, so we couldn’t take significant losses year after year, because we have a responsibility to 310 clubs not just to the two entities that play out of here.
“We are determined to do things sustainably. We have got to make sure we don’t live beyond our means.
“We will do all we can. We wanted to do this because we care about rugby in Gwent and we believe there is a real potential in the region. It’s always been a hotbed for talent and we strongly believe we can tap into that and have a really bright future.
“To watch this disappear wouldn’t have been acceptable to any of us. We are pretty energised about getting started.
“We all have to get behind it now. Come and support the team. It’s a brilliant atmosphere here when it’s packed out. Let’s get the revenue coming in and reinvest in the side. But it only works if people come and support the team.”
WHAT DOES THE FUTURE HOLD FOR NEWPORT RFC?
THERE have been grave concerns among Blacks & Ambers supporters over the takeover deal and real anger expressed in some quarters.
One issue has been the sale price of the ground, amid a view among some that the club’s prize asset was being sold to the Union below market value.
There were those who even advocated the land being sold for property development and a new home found elsewhere.
But benefactors Brown and Hazell had made it clear they would call in their debts in the event of a No vote, leaving no surplus for relocation.
So, Newport were really left between a rock and a hard place.
With the Yes vote, the Premiership outfit will accrue some £600,000 as part of the takeover deal.
They will continue to play at Rodney Parade and will have some facilities available to them on match day.
But the ongoing concern for supporters is the futire of the club in the long-term.
They will only be able to play at their former home as long as the Dragons are based there and, as such, their future is really out of their hands.