Cardiff Arms Park: Profit deal 'critical' to redevelopment

Cardiff Arms Park was home to the Welsh international side before it moved next door to what is now the Principality Stadium

The redevelopment of Cardiff Arms Park could be in jeopardy because of disagreement over sharing profits, a document seen by BBC Wales suggests.

Cardiff Blues want to give it a multi-million pound facelift but it was rejected by the ground's owner Cardiff Athletic Club (CAC) earlier this year.

The rugby section of CAC said proposals gave the landlord "inadequate recompense".

This will be put to the full management committee on Monday.

They will discuss how profits should be shared in a revised deal.

The CAC's management committee is made up of members from rugby, cricket, tennis, hockey and bowls.

The Blues declined to comment.

City centre-based Cardiff Arms Park was first used for cricket in 1848 and also by tennis, hockey and bowls clubs.

While most of these have now left, they remain equal partners of CAC, along with the rugby section - which continues to play at the venue in the semi-professional Welsh Premiership as Cardiff RFC.

Professional regional side Cardiff Blues share the stadium in a lease which runs until 2022.

Cricket was played at Cardiff Arms Park from 1848 - with it home to county side Glamorgan - while the first rugby match was in 1882

Plans were announced in 2015 to secure a new 150-year lease which would allow the Blues to redevelop the ground and build a hotel, exhibition centre and flats.

A 15,000-seater stadium with a retractable pitch and sliding roof would also have been created so it could be used as a concert venue.

But the document reveals CAC rugby section chairman Chris Norman said it was "on the point" of signing this deal earlier this year, until the Blues' annual accounts were published.

It references a mooted WRU takeover of the region because of a "significant deficit in its finances" as a major cause for concern.

"The future of Cardiff Blues was thrown into significant doubt at this point," it reads.

"And the rugby section became hugely concerned about CAC signing a very lengthy lease agreement with a company that potentially could cease to exist, or exist in its present form, once the deal was done."

There was also "every suspicion" the deal would result in CAC giving up its "heritage shares" and therefore have no influence on what happened at the ground.

The rugby section was "determined that this should not happen".

The Arms Park is situated on Westgate Street in the shadow of the Principality Stadium

At an emergency meeting last month, the CAC's rugby committee agreed 10 principles which are "critical" for taking plans forward.

These include:

• A new debt-free company run jointly by CAC and the Cardiff Blues to manage the redevelopment and all rugby matters

• Retaining professional and semi-professional rugby at the ground, with the new company responsible for both team's success

• While there will be significant commercial developments, rugby will take precedence over other events

• All sides based at the stadium must retain Cardiff in their title and wear the team's traditional colours

• A formula for sharing profits equally among shareholders must be agreed

• The redevelopment should include a museum-standard Cardiff rugby heritage centre

These principles will be put to CAC's management committee on Monday.

The paper states that while other sporting sections will be affected, "it is important to recognise, first and foremost, that it is the future of rugby that is at stake".

While Cardiff RFC and the Cardiff Blues declined to comment, a Blues member, who wanted to remain anonymous, suggested the region may look to move elsewhere if CAC stop a revised deal going forward.