WRU in talks to take over the Cardiff Blues
Blues chairman Peter Thomas has held talks with the WRU’s top brass over handing over responsibility at the capital city region.
It would mark an unprecedented shift of power in Welsh rugby history.
The WRU already hold national dual contracts for Blues players Sam Warburton and Gareth Anscombe.
But the dramatic move could see the Union, who also own a 50 per cent stake in Newport Gwent Dragons, run all rugby operations for the Arms Park side.
The Rugby Paper understands talks on the proposals are still at an early stage.
At the heart of the matter is Thomas’ ambitious plans to redevelop the Arms Park and recoup the estimated £8million he has loaned the region since it was formed in 2003. Cardiff Blues rent the Park from landlords Cardiff Athletic Club but are now close to taking ownership of the iconic ground before the current lease expires in 2022.
The Blues are ready to pay the Athletic Club, made up of members from rugby, cricket, tennis, bowls and hockey sections, an up-front payment of £8million for a new 150-year lease.
That would pave the way for the Blues to develop a new £30million venue, next door to the Principality Stadium, that would include luxury apartments and offices.
According to Blues chief executive Richard Holland, the final details of the deal are being ironed out, with a view to putting the plans to an Extraordinary General Meeting before the end of the year.
However the plans could spark anger from fellow regions Ospreys and Scarlets.
Having spent so long in a bitter wrangle with the WRU and their former chief Roger Lewis, all sides welcomed the peace-accord that came in 2014 in the shape of the Rugby Services Agreement between the Union and Regional Rugby Wales that represents the four regions.
But the fact that the Union would own such a major stake in two of the clubs would be seen as a gross conflict of interest.
A leading regional rugby source told The Rugby Paper: “This deal would not go down well with the regions in west Wales. It could potentially lead to the exclusion of the Blues from Regional Rugby Wales and a breakdown in the agreement brokered between the Union and the regions.”
The RSA was signed in August, 2014 and delivers £8.7million a year to the four teams guaranteed to be spent on Welsh qualified players.
There is also a complex matrix of funding that guarantees a further £3.6m in loan facilities from the WRU.
But the current talks are exploring ways in which the Union’s involvement in the Blues could be further expanded, though little detail has yet to emerge of how that would affect player contracts, transfers or the day-to-running of the team.
MATT LLOYD
