Cardiff await funding to ease 'cashflow pressures'

Richard Holland (left) in conversation with Wales head coach Warren Gatland

Cardiff chief executive Richard Holland says his organisation have "cashflow pressures" as they await the first instalment of the contract they signed with the Welsh Rugby Union (WRU).

The deal requires Welsh Government approval but that has yet to be agreed.

Holland outlined the issues this was causing in his latest newsletter to Cardiff supporters.

"Frustratingly and despite signing the new PRA we are yet to receive monies from the WRU due to a delay in getting final approvals," said Holland.

"This is putting cashflow pressure on the company but we hope to be in receipt of the money very soon."

Why are the Welsh Government involved?

The deal was announced by the Professional Rugby Board (PRB) which is made up of representatives of the WRU and Cardiff, Ospreys, Dragons and Scarlets.

It included a new Professional Rugby Agreement (PRA) that will run until 2029 and "provide financial predictability".

It was announced when the deal was signed that some of the key features of the new PRA would be "reliant on certain external approvals related to existing loan arrangements".

The regions and WRU signed up to this agreement, aware of this detail and are still awaiting the approval required. Those issues would have to be resolved before the full payment of the new deal could be given to the cash-strapped four regions.

There will be a number of organisations who have to give their approval, including most notably, the Welsh Government.

The most significant existing loan agreement is the £20m secured by the WRU on behalf of the four Wales professional regions at the height of the Covid-19 pandemic.

An £18m government loan was combined with another £2m of funding secured from World Rugby with the total made available between the four sides who would then have to repay the loans.

The WRU announced in March 2022 they had reached a re-financing agreement with the Welsh Government which they said would allow for more flexibility and included extending the term of the loan.

It is understood he sides are still receiving funding from the old financial agreement and any new payments will be backdated.

Cardiff are not the first to express concerns after Scarlets chairman Simon Muderack told BBC Radio Wales Sport of the issues in April.

"Some of the money has been released but there is still a final approval process to be had with the Welsh Government to release the full extent of the money into our coffers," said Muderack.

"That is a process we need to get through as quickly as we possibly can and that will carry us through the end of this season."

A Welsh Government spokesperson said: "We are actively engaged in discussions regarding the existing loan arrangement and proposed changes to the WRU's business plan."

Competing in Europe and new training base

There was no mention in the May newsletter of the future of director of rugby Dai Young. It is understood he was suspended before the final game of the season but Cardiff have only stated his absence was due to "unforeseen circumstances".

Cardiff will be the only Welsh side in the Heineken Champions Cup next season after finishing as the top Welsh region in the United Rugby Championship (URC) in 10th place out of 16.

The reduction in finances and squad sizes has seen the Cardiff squad affected with 16 players leaving and the side struggling to recruit.

"It is certainly going to be a massive challenge to compete in the top tier of Europe given the state of the game in Wales at the moment," said Holland.

"But when we have all of our players available we will still have a very strong team."

Cardiff are pressing ahead with plans to develop a training base in the Pentwyn suburb of the city. There is opposition from local people concerned with the temporary closure of the leisure centre with a crucial Cardiff council vote in June.

"We are aware of the petition and media coverage regarding Pentwyn and hope work will commence very soon," said Holland.

"Planning permission for the pitch developments has been submitted with the expectation we will be able to begin these works in the summer.

"The council remains committed to the project and a full business case for the works is currently due to be considered by cabinet in June.

"If approved, the council are hopeful works on the public facilities could also begin this year."