Cardiff Blues settle demand for outstanding rent

Cardiff Blues lease with Cardiff Athletic Club ends in 2022
Cardiff Blues lease with Cardiff Athletic Club ends in 2022

Cardiff Blues have settled their unpaid rent demands with their landlords at Cardiff Arms Park.

Blues were issued with a statutory demand earlier this month by Cardiff Athletic Club over unpaid rent.

Failure to reach an agreement to pay or respond in 21 days could have seen CAC begin legal proceedings, which could have resulted in a winding up order.

But the matter appears to have been resolved with Blues paying back money they owed.

A Cardiff Athletic Club statement read: "We are pleased to announce Cardiff Blues have paid all of the outstanding rent and ancillary charges due to Cardiff Athletic Club.

"Cardiff Athletic Club looks forward to working with Cardiff Blues to improve facilities at Cardiff Arms Park and to enable them to become the success we all aspire towards."

The CAC management committee said it had initially been agreed at its AGM in February to take legal action at the end of May if Cardiff Blues had not settled its "substantial rent arrears".

CAC says they planned to issue the statutory demand to the Welsh rugby region on 1 June, but that was delayed until the end of the month after an administration error.

The Athletic Club says it was assured by Cardiff Blues at the beginning of June a financial package had been arranged which would guarantee settlement of all arrears before the end of that month, so legal action was put on hold.

Blues are training at their Arms Park base for the 2019-20 season after leaving their previous training facilities at the Vale of Glamorgan hotel.

The recent Blues annual report revealed they had an "outstanding commitment for future minimum lease payments under non-cancellable operating leases" totalling £412,661 with regards to the Arms Park.

New Blues chairman Alun Jones had admitted the latest financial figures had not made pleasant reading, with benefactor Peter Thomas having helped bankroll the region.

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