Cardiff Rugby have confirmed their intention to enter administration and will be taken over by the Welsh Rugby Union in another dramatic development in Wales’ national game.
As revealed by Mail Sport, the capital club’s players and staff were called to an emergency meeting at Cardiff Arms Park on Tuesday afternoon to be told the news their employer has served a notice of intent to appoint an administrator.
The WRU is set to step in the coming days to ensure Cardiff does not fall out of existence as English Premiership sides Worcester, Wasps and London Irish did in the 2022-23 season.
A statement from Cardiff read: ‘Cardiff Rugby can confirm notice of intention to appoint administrators has been filed. Please rest assured everything possible is being done to protect our employees and the future of the club. We have a plan in place and we will update you as soon as possible.’
Cardiff’s official transition into administration and then governing body ownership is set to be officially confirmed later this week.
The WRU said: ‘We are aware Cardiff Rugby have confirmed notice of intention to appoint administrators and we are working closely with the Cardiff Board and the administrators to safeguard the future of professional rugby in Cardiff.’
Cardiff Rugby confirmed their intention to enter administration in a statement on Tuesday
The capital club will be taken control of by the WRU to stop it falling out of existence
Cardiff Rugby chairman Alun Jones’ position must surely now be untenable
Mail Sport understands that the WRU takeover of Cardiff means all existing and future player contracts will be honoured. The governing body — led by chief executive Abi Tierney — also hopes to protect all of the employees currently on the Cardiff payroll.
Cardiff’s financial issues once again reflect the fact that club rugby in Britain continues to struggle monetarily. For far too long, Wales’ capital club was propped up by former chairman and benefactor Peter Thomas who sadly lost his battle with cancer in 2023.
Later that same year, Helford Capital Limited — led by Phil Kempe and Neal Griffith — took on Thomas’ stake in the club and secured an 84.55 per cent shareholding in the club.
Helford’s takeover was approved by a 99.99 per cent majority.
At the time, Cardiff Rugby chairman Alun Jones said the takeover would ‘represent a huge moment in the history of Cardiff Rugby and gives us a bright, secure and exciting future.’
That simply hasn’t happened.
At a time of financial strife across the whole of Welsh rugby, Helford’s backing for Cardiff — which they committed to as part of the takeover — is understood to have been next to minimal. Helford’s takeover was approved by the Cardiff board, senior figures at the WRU and an independent, London-based company who undertook a due diligence test.
No potential issues or concerns were found.
The WRU led by Abi Tierney (pictured) hopes to protect all employees on the Cardiff payroll
The governing body are also still searching for a full-time replacement for Warren Gatland
It has been a rotten 12 months for Welsh rugby with the national team on a 17-Test losing run
However, the subsequent demise of Cardiff under Helford’s ownership raises serious questions about not only their role, but also how the club has been run under Jones and long-serving chief executive Richard Hollard. It was Holland who informed Cardiff’s players and staff of the administration plan.
Both his position and that of Jones must surely now be untenable.
Cardiff coming under WRU ownership would not have been part of Tierney’s long-term plan at a time when her in-tray is full to bursting.
However, doing so is better than the club ceasing to exist at all.
There are some, though, who believe Welsh rugby cannot afford to financially back four regions as it has currently.
The WRU looks set to appoint Dave Reddin as its new director of rugby in the coming weeks and is also on the lookout for a new permanent men’s head coach to succeed Warren Gatland.
Tierny also wants to finalise the hiring of a new chief growth officer whose job will be to grow commercial revenue off the field.
Wales’ men’s side are currently on a 17-Test losing run.
Cardiff coach Matt Sherratt who filled in as Wales coach during the Six Nations, will have to steer the club through their remaining four games of the United Rugby Championship season
England and Northampton full back George Furbank is finally close to returning from injury
Cardiff’s ownership transferral isn’t going to stop the club carrying on from business as usual with four games remaining of the regular United Rugby Championship season.
All of coach Matt Sherratt’s players are likely to remain in position for the short term at least, although their long-term futures could be placed into doubt.
The WRU previously owned another Welsh side in Dragons before that returned to private ownership and Tierney’s likely plan will be to do the same.
Meanwhile, England and Northampton full-back George Furbank is nearing a return from injury and could yet feature for the Saints in their Champions Cup quarter-final with Castres on Saturday night.
Furbank missed England’s Six Nations campaign with a broken arm suffered on European club duty in South Africa in December.
‘He’s trained this week,’ Northampton director of rugby Phil Dowson of Furbank.
‘He’s done some tackling on (Saints head coach) Sam Vesty so hopefully towards the end of the week he’ll tackle some proper athletes and he’ll be ready to go. He’s a huge part of the club and he’s been hugely frustrated because he wants to be able to contribute more.
‘He’s obviously been great behind the scenes but he’s someone who wants to be front and centre. We can’t wait to have him back.’
Furbank won’t start against Castres but might be considered for a bench spot. Northampton are the only English club to have made the last eight of the Champions Cup.
