Cardiff call Covid-19 impact 'catastrophic' as they record £1.6m loss
- Published
Fans have been allowed at the Arms Park for the majority of the 2021-22 season
Cardiff Rugby has recorded a loss of £1.6m for the year ending 30 June, 2021.
In accounts filed with Companies House, Cardiff described the financial impact of Covid-19 as "catastrophic".
Cardiff said there was a substantial drop in income for the 2020-21 season due to the pandemic, which saw games played behind closed doors.
In the accounts statement Cardiff added that the club "would not have survived" without salary and staffing cuts.
In notes accompanying the accounts, Cardiff also said they "remain reliant" on support from the Welsh Rugby Union (WRU), their "various funders" and the goodwill of fans, sponsors, directors and shareholders.
They say they received £2.7m of the £13.5m grant funding secured by the WRU from the Welsh government in 2021 to help them through the 2020-21 campaign.
Cardiff's rugby costs for the year were £8.9m, compared to £9.8m the previous year and £10.5m in 2018-19.
The £1.6m loss was up significantly compared to £317,000 in 2019-20 and £405,000 the previous year.
Cardiff said Covid continued to have a "significant impact on the day-to-day running" of the club, and that salary reductions on earnings over £25,000 and a staff restructure had been "unfortunately necessary", with 14 positions made redundant.
They also said a framework for long-term reductions in player salaries was agreed, although a number of players accepted the changes over a longer term to give them more security.
"Without this sacrifice by the company's employees, the club simply would not have survived," the accounts said.
Cardiff said "one real positive" was the number of fans who had donated the costs of season memberships or match tickets to support the region during the pandemic.
Cardiff received £65,000 in donations, with £50,000 requested in credit and £48,000 in refunds.
"Looking back and reflecting on the last year, I feel an immense sense of pride at how everyone associated with Cardiff Rugby has pulled together for the greater good of the club and for our society in general," said chairman Alun Jones.
The accounts said there had been in an uptake in commercial numbers, membership and ticket sales on the back of the decision to drop the word 'Blues' from their name, which was announced in March 2021.
They also said Cardiff may train long-term at Pentwyn Leisure Centre, having moved there during the pandemic, and that negotiations were ongoing over lease to play at the Arms Park.
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