Cardiff Rugby has experienced a significant financial loss, recording £2.2m in losses for the 2021-22 season, compared to £1.6m in the previous year. The club’s chief executive, Richard Holland, previously highlighted cashflow pressures in May, but the team has since received the first instalment of financial support from the Welsh Rugby Union (WRU). However, Cardiff Rugby still faces challenges and continues to repay a 20-year £5.5m loan acquired during the Covid-19 pandemic.
The club’s chairman, Alan Jones, acknowledged the ongoing hurdles faced by Welsh rugby as a whole, including the professional game and individual clubs. Jones expressed gratitude for the support received and emphasized that without such assistance, the professional game would face dire consequences. Despite the significant loss, Cardiff Rugby’s turnover actually increased from £5.4m in the previous year to £13.2m in the latest financial report.
The delay in releasing funds to cash-strapped teams has been a concern, as Nigel Walker, the acting CEO of the WRU, mentioned in June. However, a new six-year deal between the WRU and the teams was signed in March, providing a funding framework for the professional game. This agreement will also introduce salary caps starting from the 2023-24 season, set at £5.2m initially and reducing to £4.5m for the 2024-25 campaign.
The challenges faced by Cardiff Rugby have been exacerbated by the Covid-19 pandemic. In December 2021, when the Omicron variant was identified in South Africa, travel restrictions were imposed by the UK Government. As a result, 48 Cardiff Rugby employees were stuck in the country on quarantine.
Cardiff’s club directors stated in their report to Companies House that the pandemic has continued to disrupt the club both on and off the field.
Moving forward, Jones emphasized the need to maintain efforts in making collective improvements off the field to promote continued improvements on the field. The aim is to navigate the financial challenges and uncertainties in the sports industry and ensure the sustainable growth of Cardiff Rugby.
In conclusion, Cardiff Rugby has reported a significant financial loss for the 2021-22 season. Despite increased turnover, the club’s losses have escalated from the previous year. The support from the Welsh Rugby Union has provided some relief, but challenges persist. The club is focused on finding ways to improve off the field to foster progress on the field.
