Following an extended period of negotiation, I can confirm that Cardiff Blues and Cardiff City Football Club have signed a detailed Heads of Terms agreement to share the new stadium at Leckwith.

The modern stadium will provide a new beginning not to mention first class facilities for our shareholders, supporters, sponsors and players alike. Improved services for younger fans, families and disabled visitors will also provide the safe and comfortable surroundings expected from today's professional sports arenas.

We will be working closely with our new sporting partner to ensure that the commercial interests of both parties are protected and an operating agreement is achieved to provide a platform for the growth and development of both teams.

This decision will undoubtedly be received with mixed emotion, as many of us will have our own special and cherished memories associated with The Arms Park. However, whatever your personal perspective, we sincerely hope that you will embrace the positive aspects of change and continue to support your team and look forward to the significant potential a new stadium has to offer.

Over the recent past we have canvassed the views and concerns of many supporters and, as a result, have prepared the enclosed information sheet which we hope provides answers to some of the most frequently asked questions.

Naturally, we welcome your ongoing support as we undertake yet another challenging but exciting step forward in the evolution of professional rugby in Wales.

Yours sincerely

Robert Norster
Chief Executive

1. Why are the Cardiff Blues proposing moving from the Arms Park?

Since the formation of the Cardiff Blues in 2003, the company's board has sought to develop a vibrant business and regional brand identity. To achieve these goals, the company has invested in the creation of a dedicated training facility, established a region wide academy, and recruited international class players to the Arms Park.

As a result, the region has witnessed a doubling in the average attendance at matches, and experienced significant growth in commercial revenues.

To continue this growth, and investment in the team, the board has recognised that better facilities must be provided to both players and supporters of the Cardiff Blues.

The current Arms Park was built some 30 years ago and is now out dated relative to other more modern stadia. To continue to grow the business and attract new supporters the board has recognised that new facilities must be provided.

An extensive review was undertaken, which concluded that the development of a new stadium on the current Arms Park site was both financially and logistically impractical. Therefore the board has decided that to continue to develop its vision for the Cardiff Blues, moving to a new stadium with Cardiff City is the best option.

Moving to a new, purpose-built ground will give the Cardiff Blues an opportunity to improve facilities for everyone from our supporters and sponsors to the playing staff. In doing so it is our intention to create a state of the art family-friendly, safe environment with a host of benefits only a new build can provide.

2. What about the heritage and tradition of playing at the Arms Park, couldn't the current ground be redeveloped?

Although both the Cardiff Blues and Cardiff RFC play at the Arms Park, the ground is actually owned by Cardiff Athletic Club. The holding company of both teams was formed when rugby turned professional and was effectively "spun off" from the Athletic Club. The company has a lease to play at the Arms Park, and therefore does not have the right to develop the site.

Any redevelopment of the Arms Park would need to be made in conjunction with Cardiff Athletic Club. Neither the Limited Company nor the Athletic Club believe that this option is financially viable.

In addition the requirements of new stadia, in terms of both spectators and players necessitate far larger areas of land. The current footprint of land at the Arms Park does not easily lend itself to the development of a state of the art stadium.

The decision to relocate the Cardiff Blues has not been taken lightly. It has been a highly emotive issue, but the board, who also comprise of former players who have played nearly all their careers on the Arms Park, believe a move to a new stadium is the best option for the Cardiff Blues.

Cardiff Blues is a sporting brand for the whole of the city and the wider region, and as such needs to be forward-thinking and embrace change as many others are also doing at this time.

Since embracing professional rugby and regionalisation, other clubs in Wales and throughout the rugby world have shown that it is possible to relocate to new, better facilities and that is an opportunity we should not ignore.
We have seen the benefit of playing in a modern stadium in recent years when we attracted nearly 27,000 supporters to the Millennium Stadium, to see us play Leicester in the Heineken Cup. This followed the record16,000 people to watch us play Leinster in the Celtic League the previous season. Our average attendances have also doubled since regional rugby was first introduced, with our core supporters being joined by new supporters from throughout the region.

Many of our competitors in the Magners League have already relocated or are in the process of redevelopment (e.g. the Ospreys and Munster) whilst both the Scarlets and Dragons have recently announced their own relocation/development plans. The Company's board is determined that the Cardiff Blues is not left behind and hence its decision to move to Leckwith.

3. Why doesn't the team continue at the Arms Park but play its bigger matches at the Millennium Stadium?

When the Millennium Stadium was built by the WRU, the company negotiated the right to play a certain number of fixtures at the new stadium should the need require. Although the above matches have proved a success, we have struggled to allocate fixtures due to the understandable scheduling of events at the Millennium Stadium. These have included both fixture clashes and/or times when no pitch has been laid in the stadium.
In addition, the board believes that this option does not provide the company with the long term benefits of a new stadium. Furthermore, the ongoing need for the refurbishment of the Arms Park will remain, and would need to be addressed.

4.Does Cardiff Athletic Club support the move?

The Athletic Club Management Committee recently voted overwhelmingly to support the company's proposal to relocate the Cardiff Blues.

5. Does the sharing of Stadia work in practice?

The sharing of stadia between sporting teams has become far more common in recent years. This commenced originally in Continental Europe where single city stadia were built to accommodate more than one football team. This maximises the use of the stadium and reduces the relative running costs for the occupiers.

In the UK this model has been used successfully for cross sport stadia. The Liberty Stadium has proved a success for the Ospreys and Swansea City, whilst other beneficial sharing arrangements include Hull City and Hull RFC at the KC Stadium, and Wigan Athletic and Wigan Warriors at the JJB Stadium.

Probably the most extensive example of this form of arrangement is however found in the Guinness Premiership, where seven of the twelve teams have a ground sharing agreement.

6. How will our partnership with Cardiff City FC work?

The new arrangement at the Leckwith Stadium will in essence be the same as currently in place for the Cardiff Blues, in that at present the team is a tenant of Cardiff Athletic Club, whilst at Leckwith it will be Cardiff City FC.

Each club will continue to operate separately but there will inevitably be strong co-operation commercially and through joint marketing initiatives to ensure both clubs make the most of the opportunity ahead.
Both rugby and football teams in Cardiff have a long history in the city and ground sharing is nothing new. Both teams played their matches at Sophia Gardens when they were first formed at the end of the 19th century.
7. What will happen to Cardiff Arms Park?

The company has some 15 years left of its existing lease at the Arms Park and our intention is to continue to play and operate Cardiff RFC from the ground.

However as stated, the Athletic Club are the landlords of the ground and they may wish to explore alternative uses in light of the relocation of the Cardiff Blues.

8. What will happen to Cardiff RFC?

Cardiff RFC remains an integral part of the Board's longer term plans. It is intended to continue to develop the team within the regional structure.

Should Cardiff Athletic Club decide to obtain an alternative use for the Arms Park, the board will seek to secure a new venue to facilitate the players and supporters of Cardiff RFC.

9. When will Cardiff Blues play at the new stadium?

Work at the site has already begun on the infrastructure of the new stadium and it is envisaged that both Cardiff Blues and Cardiff City will play at the new stadium from the beginning of the 2009/10 season.

We will aim to keep shareholders and stakeholders alike informed as we progress matters by publishing information on www.cardiffblues.com