Roof walk could take off thanks to TV cash
PLANS for a new roof walk attraction at the Principality Stadium could get off the ground thanks to Welsh rugby’s impending TV cash windfall.
The Welsh Rugby Union, as part of its strategy of investing in projects generating new revenue streams outside of international matches, is also looking to create a new Welsh rugby experience attraction.
Building on its successful tours of the stadium offer, a roof walk attraction would provide year-round new income, which in turn the union would reinvest to support the game in Wales.
And while it’s early days for the project, the union has identified a number of potential sites for a new rugby experience attraction.
While not commenting on specific locations, a front-runner could be the Stadium Plaza leisure scheme next to the stadium. Owner of the venue, Naissance Capital, is looking to revitalise the landmark venue with new tenants post-Covid.
Any rugby experience would feature interactive technology relating to the game and the rich history of the sport in Wales. It could also provide an educational resource for schools.
Chief executive of the union Steve Phillips said that the two mooted projects could be financed from the £50m the WRU will receive from its share of the deal with private equity firm CVC that has seen it taking a minority interest in the Six Nations tournament.
Subject to securing regulatory approval, the WRU will receive, after deal-related costs, just over £50m from its share of CVC’s £356m deal with Six Nations Rugby Ltd. The money will be drawn down from CVC over the next five years by the WRU.
Mr Phillips said the strategy would be to deploy part of the capital to finance new projects that generate long-term returns outside of international rugby.
Mr Phillips added: “To pick an example, we’re investing in a hotel. That will give Welsh rugby a long-term annuity. We’re looking at all those sort of things. We’ve always had ambitions to do a roof walk, which I think still works. There’s a conversation about doing a WRU visitor experience.
“All these sort of things will come back on the table once Covid is behind us and we’re able to land the CVC capital proceeds.
“One thing to remember is that we are subject to regulatory approval on the CVC deal. The legal view is that’s a good four or five months away. So we’re estimating something to arrive around August or September but we’re at the mercy of the regulators.”
The union, in partnership with L&G as funder and developer in Cardiffbased Rightacres Property, will see its new hotel next to the stadium open later this year. The four-star hotel on Westgate Street has been forward funded to the tune of £45m by L&G Investment Management Real Assets, with the WRU entering into a longterm lease.
It will be operated by the Celtic Manor Resort.
The WRU is confident, after costs, of generating an annual profit of several million pounds a year once the luxury hotel opens later this year.