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Cardiff face possible winding-up petition

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PRO 14    

Cardiff's latest financial headache could result in a winding-up petition

Under-achieving Cardiff Blues have been given their latest headache – the threat of facing a winding-up petition if they fail to pay outstanding rent for their use of the Arms Park. 

The Blues are only tenants at the ground adjacent to the Principality Stadium and they have been issued with a statutory demand by the Arms Park’s landlord, Cardiff Athletic Club (CAC), to either pay the debt or reach an agreement to pay within 21 days.

Failure to keep up with payments is apparently nothing new for the Guinness PRO14 rugby club who failed to qualify for the league play-offs and didn’t secure qualification for next season’ Heineken Champions Cup. But the existing debt is now reported to be in the region of £140,000. 

“We were assured by Cardiff Blues that a financial package had been arranged which would guarantee settlement of all arrears before the end of June,” read a statement issued by Cardiff Athletic Club. “As a result of this reassurance, the legal proceedings were put on hold.

“Cardiff Athletic Club recognises the tough financial environment for regional rugby in Wales and has made every effort to work with Cardiff Blues Ltd to clear the outstanding arrears.

“However, Cardiff Athletic Club management committee has a duty to all five (bowls, rugby, hockey, cricket and tennis) of its sections. The absence of any rental payments for such a substantial period has impacted on the operations for all sections of the club.

“Having exhausted all areas of negotiation and being able to settle this matter amicably, Cardiff Athletic Club has therefore issued a statutory demand in respect of all outstanding debts to protect the interests of our members.”

Cardiff revealed in February 2018 that they were considering a move away from the Arms Park as a new lease had not yet been negotiated with the CAC beyond its 2022 expiry date. In an effort to cut costs, though, the Blues announced some weeks ago that Arms Park will be their training base for the 2019/20 season and not the Vale of Glamorgan hotel.

WATCH: The Dragons Lair, the RugbyPass behind the scenes documentary on the Dragons when Bernard Jackman was at the helm

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Cardiff's latest financial headache could result in a winding-up petition