The Welsh Rugby Union has taken control of Cardiff after the Blue and Blacks were placed into temporary administration by the club’s directors on Wednesday 9 April. Following the announcement, the Arms Park club’s business and assets were immediately sold to the WRU by the appointed administrator PwC.
The decision came after it transpired that Helford Capital, Cardiff’s owners since January 2024, were no longer able to fund the club. The shock collapse comes just over a year since Cardiff appeared to have secured their long-term future when Helford’s acquisition was approved at a general meeting of club members with a 99.99 per cent majority.
The WRU has announced that players and staff will be unaffected by the sale. Cardiff Rugby chair Alun Jones has stepped down from his position (he wasn’t a direct employee of Cardiff Rugby Ltd), while chief executive Richard Holland, who is due to be transferred to the WRU as an employee under TUPE regulations, has said he will “reflect” and consider his future.
Cardiff’s remaining fixtures, starting with Judgement Day (the iconic double-header event) at the Principality Stadium on 19 April, will be fulfilled. The Blue and Blacks also face United Rugby Championship fixtures against Munster at home, then the Bulls and Stormers in South Africa. The league’s top eight finishers secure a playoff place, with Cardiff currently sitting in ninth.
This is the second time the WRU has taken ownership over one of Wales’ professional clubs, having previously owned the Dragons for six years from 2017 to September 2023 when the Gwent club was finally purchased by a consortium headed by Dragons’ chairman David Buttress.
Abi Tierney, the WRU chief executive, has said it was “unthinkable for us to allow the demise of professional rugby in the Welsh capital” and that the decision was made “recognising [Cardiff’s] critical importance to the future of Welsh rugby”.
Formed in 1876, Cardiff Rugby is one of the oldest clubs in Wales and regarded as one of the most historic club sides in the world. Since the regional era began back in 2003, Cardiff have won the European Challenge Cup twice. The club has also made a substantial contribution to the Lions over the years, contributing 45 players to Lions tours including greats like Gwyn Nicholls, Bleddyn Williams and Gareth Edwards. With the Lions due to kick off their tour of Australia in June, fans will be hoping any players from Cardiff that do make the squad will be able to keep their focus on the pitch and avoid off-field distractions.
The game in Wales is already under extraordinary strain following the dismal Men’s Six Nations campaign, while Welsh rugby’s traditional grassroots pipeline has been decimated over recent years. The finances in professional rugby union on both sides of the Severn are increasingly concerning, following the recent demise of English Premiership sides Wasps, Worcester Warriors and London Irish, with Cardiff the latest to fall victim to financial pressures.
The crisis at Cardiff has also dealt a blow to the finalisation of the much-anticipated new funding agreement for professional rugby in Wales. An agreement appeared to have been reached between the WRU and its four regional teams, but that has now been paused. Cardiff’s problems could prove contagious, and the Dragons, Ospreys and Scarlets will be pushing for urgent clarification regarding the possible ramifications for their clubs.
The problems with the Welsh game run much deeper than the financial meltdown at Cardiff. Among them, an underwhelming crop of current players who have fallen short of the high standards set by their predecessors, leading to apathy and a lack of interest amongst some supporters. Meanwhile, there isn’t enough money going into the regions, with attention having shifted to the national team.
The problem is, it’s the regions that produce the talent, but the academy system has been gutted, grassroots clubs have folded, youth scouting systems have been shut down, and dozens of secondary schools have shifted their focus to football. How can the WRU realistically expect to bring through elite players without an elite scouting and training structure? That said, the Under-20s have recently beaten England and Ireland, so perhaps the green shoots of a future quality crop are starting to emerge?
The takeover by the WRU does provide the opportunity for a period of stability for professional rugby in Cardiff, with minimum disruption to players and fans. But the problems with Welsh rugby are systemic, and root and branch reform of the Welsh game is required to start bringing talent through, while shoring up the game financially. That will require large injections of cash, but it’s difficult to see where the money will come from, with low broadcast revenues and limited gate receipts and a lack of potential major national sponsors able to pick up the tab.
One hopes the WRU’s new funding agreement can get back on track quickly and that it delivers the financial stability the big four desperately need, but optimism is a premium commodity at the moment.
In a further blow to sport in the Welsh Capital, Cardiff City FC are also staring down the barrel of relegation from the Championship. Bad news for the Sky Blues, but at least it gives us Swansea fans something to smile about… though it’s more of a rictus grin!
Contact our Sports Law and Corporate & Commercial expert:
David Little is a Partner at Bishop & Sewell in our expert Sports Law and Corporate & Commercial
If you would like to contact him, please call on either 07968 027343 or 020 7631 4141 or email: company@
The above is accurate as at 15 April 2025.
The information above may be subject to change.
The content of this note should not be considered legal advice, and each matter should be considered on a case-by-case basis.
