Call to Arms

Meeting with Alun Doull, Financial Director, CRFC Ltd

by Philip Thomas

3 Oct 2007

Call To Arms would like to thank Alun Doull, Finance Director of Cardiff Rugby Football Club Limited, for his time at a lengthy meeting yesterday afternoon. He met with C2A representative Philip Thomas and the agenda was obviously driven by the announcement of the Heads of Terms agreement for the move to the new City of Cardiff Stadium, Leckwith.

The Board feel that Cardiff Blues should be, at least, a HEC last 8 team each season yet the present facilities of CAP prevent the necessary income generation to provide a squad capable of that achievement. We're still in a period of strong player wage inflation and the top Southern Hemisphere players are commanding salaries well over £200,000 pa. Not only does the business have to provide for those kind of signings, but the likes of Tom Shanklin and Gethin Jenkins will also be the targets of high wage offers from other clubs.

So, in short, the Board feels that the offer of a 20 year use of the new stadium (even with the associated payments to Cardiff City FC) will provide this necessary income. The main chunk of this will come from the extra corporate facilities available, not only corporate boxes but through dining areas and "Premier Seating". This is very much the model of the Liberty Stadium where one side of the ground is almost entirely dedicated to corporate customers, with season ticket holders / "retail" customers on the other side of the ground. Whilst CAP has near to 40 boxes, the new stadium offers yet more corporate facilities and the possibility of offering 5 year corporate season tickets.

At the end of the 20 year lease then a new agreement must be negotiated between the football and rugby clubs. The council's hold over the stadium (they have included stringent clauses in its usage as they are piling in a sum of cash) is over after 20 years.

There seems to be no desire on behalf of the present landlords to keep the Cardiff Blues at Cardiff Arms Park or to improve the facilities at CAP to allow the business the required facilities.

The Board are confident that the extra costs will be covered by the increased income, CCFC are happy to have tenants at their ground and the City Council are delighted to have the city's premier sporting teams at the new stadium.

However, the counter argument to the move is not weakened by any of this information:

  • The Board believe that a 20 year agreement is vital to the growth of the business yet we point to the 7 year agreement that London Irish enjoy at the Madjeski and question whether the board are willing to sign for 20 years in order to keep down the annual rent figure.
  • We all agree that CAP must be modernised in order to offer the best corporate facilities but non-matchday income will be ZERO POUNDS from the Leckwith Stadium. Surely a redeveloped CAP with business facilities could be utilised for the 350 days of the year when professional rugby isn't played at the ground.

The Board questions whether CAP can redeveloped because of a lack of the required space but we ask "Where are the plans from potential developers"? The Board can only reach a full decision on the potential of redevelopment once:

  • they have commissioned architects plans
  • they have presented these plans to the landlords and majority shareholders (Cardiff Athletic Club)
  • the Landlords have addressed their members and given a decision.

The Board feel that the present Management Committee of CAC are happy with the decision to move and, indeed, Robert Norster made reference to this in his statement on www.cardiffblues.com. We say that the Management Committee must be changed if they are in agreement with the move so as to provide an alternative.

In summary, the view of the Trust is that we are very uncomfortable with the term of the lease as it is so long as to prevent any other alternative. We fully agree that facilities must be updated / upgraded but our preferred outcome (which we believe is still possible) would be one of the following:

  • A change in the view of the Management Committee of the Cardiff Athletic Club to discuss the possible redevelopment of CAP.
  • The view of the Trust is different from the view of the Board in that the Trust believes owning your own ground is preferential. In order to maintain this and to maintain Cardiff Blues as Cardiff RFC Ltd then the present Management Committee of CAC must be changed.

Please keep in mind:

  • if / once the Cardiff Blues move from CAP then the pressure on CAC to sell the ground (internal pressure from other sections and external pressure from developers) will be immense.
  • Also, the pressure on CAC to change the constitution of CRFC Ltd to allow Peter Thomas / AN Other to "own" Cardiff Rugby will be immense. Call To Arms believes that Cardiff Blues is a rebrand of Cardiff RFC and we believe that supporters must maintain a strong influence in the running of the club.

For this, we wish to see the following:

  • the removal of the present structure of the Management Committe of CAC. A 75% vote is required to see this through at the EGM.
  • this will allow C2A to put pressure on CRFC Ltd (through the control of the Heritage Shares, 750,000 ordinary shares and three Board seats).
  • this will give the new Management Committee time to redevelop CAP