The new owners of Cardiff Rugby have revealed plans to invest both on and off the pitch with the aim of the club regaining its status as a competitive force in Europe.
Phil Kempe and Neal Griffith now have a 84.55% stake in the club, through Helford Capital. The takeover of the club went unconditional at a general meeting on Tuesday with 99.9% voting in favour of a deal that sees Cardiff Athletic Club maintaining a minority equity stake.
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Several other amendments to the articles were also approved, including changing the company’s name to Cardiff Rugby Limited and the introduction of additional heritage rights.
The new owners confirmed that progress is already being made in terms of recruitment and retention for the 2024-25 season, while ensuring that all new players are the "right fit for Cardiff in terms of ability, age-profile and personality.”
From next season the four Welsh regions have agreed to implement a reduced player squad salary cap of £4.5m. If Cardiff were to invest more it would require backing from the other three regions and the WRU through the Professional Rugby Board - although the regions have indicated they wouldn’t oppose such a move.
Welshman Mr Kempe, a former Formula 3 racing driver, began his entrepreneurial career running the first McDonald’s franchise outlets in the 海角视频. Mr Griffith is a former investment banker with numerous global business interests as both an investor and director.
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In a statement the club said: “The ultimate ambition of Helford Capital for Cardiff Rugby is to deliver exceptional rugby experiences. Whether that is as a player, a staff member, sponsor, supporter or casual viewer the desire is to provide the very best.”
"The club the immediate priority is stabalising the business with the short-term plan remains on putting solid foundations in place to deliver sustainable success.
: “A large part of the club’s strategy remains focused on developing rugby talent from within and investment will therefore be made in facilities, the player pathway and academy system.
“Cardiff are fortunate to already boast an exceptional pathway - only Leinster produce more players across the three top leagues in Europe - and we are determined to harness and unleash its full potential, first by increasing numbers and resource, while also introducing scholarship opportunities.
“This is a large part of the vision for the future, but we are also acutely aware of the need to supplement home grown talent with overseas experience to aid individual development and collective competitiveness.
1In addition to this, in the quest to provide the best environment to play or work in rugby, we will gradually introduce other means of investment in talent, whether that is through facilities, continuing professional development, or general wellbeing. “
On the club’s commercial operation, the statement added: “Significant off-field support will also be made available to ensure all departments have the human resource, technology and tools to deliver commercial success and unrivalled experiences.
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"We will now embark on an inclusive process to build a long-term strategy to ensure Cardiff is market leader in all areas of the business.
"With collective effort, we are confident we can deliver the Blue and Blacks back to being a competitive force in Europe.
"Cardiff is undeniably one of the biggest rugby brands in the world and it boasts a unique and unrivalled history. It is time for the club to live up to that rich history and this is the beginning of our journey to get there. We look forward to meeting all key stakeholders in the weeks and months ahead.”
Ahead of the general meeting the takeover already had majority shareholder backing from the likes of Martyn Ryan, Paul Bailey, the Smart family and the family of the club’s late benefactor ad president Peter Thomas.
The outgoing investors will only receive a nominal amount for their shares, but could potentially offset losses against tax liabilities.
Before his death Mr Thomas, agreed to be its principal investor - fulfilling a requirement of the new funding deal that the four regions struck with the WRU.
That liability now falls to the new owners, so lifting the commitment on the Thomas family. What amount all regional principal investors across the regions will have to commit financially over the next six years will be dependent on commercial performances. However, based on historical trading losses within the regional game, it could run into millions of pounds.
Craig Davies, speaking on behalf of the Thomas family, said: “We are very grateful to everyone who has played a part in this process.
“Following the sad loss of Peter last year, we felt it was the right time to hand the reins to others, who could drive the club forward in a new era.
“Cardiff Rugby was Peter’s unwavering passion and we are delighted to have found new investors in Helford Capital, who possess the same energy and ambition to fulfil his legacy and vision.
“We are very confident the club is in not only safe hands but now has a very exciting future and we look forward to continuing visiting the Arms Park as supporters.”