Cardiff Rugby Set For Investment Boost
Cardiff Rugby, one of the four professional Welsh rugby union teams, is set to be taken over by new investors.
The Welsh capital city club has signed heads of terms to change the major shareholding of the club and in turn unlock significant investment following months of financial struggle.
Welsh rugby’s period of austerity has seen all four of its professional rugby sides suffer severe financial pressure with a drop in funding and then a subsequent delay in receiving expected funds. The teams include Ospreys, Dragons and Scarlets, alongside Cardiff.
A new six-year deal between the Welsh Rugby Union (WRU) and the teams was signed in March, which will see salary caps introduced for the 2023-24 season – £5.2m reducing to £4.5m for the 2024-25 campaign.
Cardiff had been in discussions with global investment group Y11 Sport and Media, the majority shareholder of the club’s Welsh rivals Ospreys, about a potential merger. However, this plan was denied by the Cardiff in June, and now it has confirmed that the club is heading in a different route.
“An agreement has now been reached with one of these groups, who have a long personal association with Cardiff Rugby but no existing investments in professional rugby.”
CARDIFF RUGBY
Cardiff has announced it had been considering offers for the shareholding of ex-chairman Peter Thomas, who died last March.
Cardiff released a statement on Wednesday (6th September) that confirmed the arrival of new backers.
‘In recent months there have been a number of approaches and discussions with various parties interested in the club.
‘An agreement has now been reached with one of these groups, who have a long personal association with Cardiff Rugby but no existing investments in professional rugby.
‘The company will continue to work through the administrative process and will update all stakeholders on the exciting vision for the future of the club and its associated teams in due course.’
The family of the late ex-Chairman Thomas stated on social media, ‘The club has been an enormous part of our lives and was a lifelong passion of our beloved husband and father.
‘We will always stand behind the club, but we believe the time is now right to step aside and allow somebody else to take the reins.’
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