Cardiff Rugby will declare their intention to go into administration with the Welsh Rugby Union (WRU) set to takeover control of the club, Sportin Wales understands.

Welsh capital based region will serve a notice of intent to appoint an administrator in the coming days.

The WRU will step in to run the day-to-day operation of the side, despite not being able to step in straight away. There was an emergency meeting on Tuesday afternoon, held by Chief Executive Richard Holland, with the players, coaches, administrative, and operations staff.

In a statement from the WRU, the organisation said that they are ‘aware’ of Cardiff’s intentions and that they are ‘working closely’ with the region.

“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,” said a WRU spokesperson.

A Cardiff statement read: “Cardiff Rugby can confirm notice of intention to appoint administrators has been filed. Please rest assured that 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.”

Investment group Helford Capital Limited completed their takeover of Cardiff in January 2024, after it acquired 84.55% shareholding.

Neal Griffith, along with Welsh entrepreneur Phil Kempe, have owned the club since then.

As part of the takeover process, Cardiff Athletic Club (CAC) agreed to a reduced and small minority interest. CAC owns the freehold of Cardiff Arms Park where Cardiff Rugby play under a tenancy agreement.

Both Kempe and Griffith effectively took on a benefactor commitment to any losses incurred by the club which had been agreed by Peter Thomas before his death.

That was agreed as part of the current funding agreement between the Welsh regions and the governing body the Welsh Rugby Union (WRU). A new deal between the WRU and the regions has yet to be signed off and has been in the works for a number of months now.

Fit and proper person and financial tests on the directors of Helford were undertaken on behalf of Cardiff Rugby by the WRU, via a professional advisory firm. Both passed as part of the due diligence that led to the takeover of the club.

What’s Next?

Cardiff’s decision comes with the WRU yet to announce the next phase of their ‘One Wales’ strategy that aims to make Wales one of the top rugby nations again.

The strategy sets out plans to make the senior men’s and women’s sides consistently in the top five of the world rankings, with the regional sides competing in the play-offs of the United Rugby Championship and at the top of the Celtic Challenge by 2029.

The deal – called the Professional Rugby Agreement (PRA) – is based on the four regions, including Cardiff, being functioning independent businesses with private investment.

Today’s news puts the PRA into jeopardy.

What will happen if the WRU takeover?

While the WRU have not yet confirmed their plans to takeover Cardiff Rugby in the short term, Sportin Wales understands that this will be the case.

If the WRU does take over in the short term, then the process of finding a longer-term investor or owner will begin very shortly.

The last time a region required the WRU to step in like this was with Dragons RFC in 2017. In that case, the Union avoided taking over permanent ownership of the club, returning it to private ownership in 2023 with chairman David Buttress buying both the club and Rodney Parade.

What effect will this have on the pitch?

It is difficult to have a confident answer on what will happen to the club without official confirmation of the plans, but Cardiff do not play until Saturday April 19th, when they face Ospreys at the Principality Stadium as part of ‘Judgement Day.’

Matt Sherratt’s side, despite going out of the EPCR Challenge Cup last weekend to Connacht, are still in the fight to qualify for the URC play-offs.

Cardiff play their final home match of the regular season at the Arms Park against Munster on April 25.

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