Trust News

Trust vice-chair Mike Spear

A volunteer day will be staged at the Memorial Garden at the Cardiff City Stadium on Tuesday, July 29 (10.30am-12.30pm).

Volunteers are needed to carry out painting of fencing, plot surrounds and benches, along with other work, including weeding.

The day has been organised by the Cardiff City Veterans Hub and further information is available from Trust vice-chair Mike Spear, himself a veteran, on 07903 188141.

All materials, including paint brushes, paint etc, will be provided, so volunteers just need to turn up next Tuesday.

Cardiff City Supporters’ Trust is in full support of this initiative.

A message to our members:

You will recall that, when reports first emerged of a bid to acquire Cardiff City, we contacted the club to seek clarification. We received a response that no formal bid had been made but a notice of intention to make such an offer had been received.

Since then speculation regarding a bid has significantly ramped up not just on social media but also in the national press. Reports that a quantified bid has been made, together with interviews with Gareth Bale who is reported to be involved with a consortium, is causing consternation amongst the fanbase who, in our view, should be kept in the picture.

We have since contacted directly the 3 Europe based Directors of the club seeking further clarification of the situation and asking for an official public statement to be made.

We received a reply that the Club are not prepared to make a public statement in response to what they say are “rumours”.To say that this is a very unsatisfactory situation is an understatement. The Club need to confirm the position so that supporters get the clarity they deserve. We will continue to press the club to make a formal statement.

The Board of Cardiff City Supporters’ Trust

Trust chair Keith Morgan, a football finance expert,  writes to members in the wake of the reported interest of a Gareth Bale fronted consortium in buying at least a share in Cardiff City FC.

There has been considerable discussion on social media recently about a bid to acquire Cardiff City FC from current owner Vincent Tan. The situation seems to be somewhat confusing but the actual position appears to be as follows:

Claims that an actual bid by a US based consortium has been made are a bit misleading. As a result of a conversation the Trust has had with the club at board level it seems that no formal bid has been made for the club to consider. Rather, a notice of intention to make such an offer was delivered direct to owner Vincent Tan who seems to have had little interest in it and, in the absence of an actual bid, the matter was not progressed further. The board have confirmed that no bid has been received and that one is not anticipated.

In a very recent Sky Sports interview Gareth Bale stated that he would be interested in being involved with a consortium looking to acquire the club but didn’t claim that an actual bid had been made. He said that something might happen in the future but put no timescale on it.

The consortium seem to have to date just started what I would call a “fishing trip”. i.e put some bait on a line to various football clubs (Plymouth Argyle have been mentioned to date but there may have been others) to see if any of them take a “bite” by showing an intent to explore the matter further.

I have taken soundings from some of my former business colleagues in the accountancy world (some of them having football advisory experience) and their view, and one that might be shared by the owner, is that it would be inadvisable to consider a sale of the club at the moment for a number of reasons, including the following

1. As a consequence of last season’s relegation the club’s income from TV/media rights and the solidarity payments through the EFL agreement with the Premier League has dropped by a total of approximately £10m. This obviously impacts on the selling value of the club.
2. The formal hearing in the ongoing legal claim against FC Nantes is due to be held in just a few months time in September with a ruling laid down by the end of this calendar year. If the claim is successful (and there is great optimism that it will) then the club could benefit by many millions of pounds. This would significantly increase the value of the club.

In summary, the position remains uncertain. The Trust will continue to provide updates and commentaries if and when the situation changes

Keith Morgan

Chair

Trust Chair Keith Morgan

Trust Chair Keith Morgan has provided a note to members on financial restrictions in League One

At our AGM on June 19th, I briefly mentioned the different EFL financial restrictions which our club will have to abide by in League 1. So I hope you find this more detailed note useful to understand how different it will be from the restrictions on Championship clubs which applied to us last season.

 In the Championship club annual losses are restricted to an average of £13m a financial year (provided £8m of this is covered by non-refundable cash injections into the club by its owners) over a three year period.

Some adjustments are allowed to the reported loss figure by things like spending on youth and stadium development but this is the “base” figure.Any breach of these limits can lead to transfer embargos or points deductions.

In League 1 and League 2 these profitability restrictions don’t apply. Instead the restriction is based on player wage costs under what is known as Salary Cost Management Protocol (SCMP). League 1 club total player wages costs must not exceed 60% of turnover (55% in League 2). There is no restriction on transfer fees paid, just on wages.

Compliance with the above rules is closely and regularly monitored by the EFL based on projections submitted by the club and if a club looks like it is heading for a breach, then a transfer embargo will be applied until a club becomes compliant again.

The definitions of turnover and player wages are important in the above calculation

1. Turnover would normally just include match day income, commercial sponsorship and TV revenue. It can also include profits from hospitality events as many clubs use their stadium facilities far  more often than on match days.
2. However in League 1 turnover is also allowed to include cash injected by the club owner by way of new non-refundable share capital ( i.e not loans).So an owner can greatly increase the allowable limits of player wages by this method
3. Turnover also will include any profit on player sales, but only when the cash from those sales is actually received – many deals tend to be done on an instalment basis to ease cash flows
4. The wage cost for players loaned out in the season are excluded from the calculation for the period in which they are loaned out.
5. An exclusion from wage costs also applies to players on a professional contract who are  under 21 at the start of a season who  have come through the club`s youth development scheme and have been with the club for three years or more.
6. Cardiff City also have another potential favourable interim wage adjustment as a club that has just been relegated from the Championship. If a player was signed before September 2024 on a contract of over three years then their wage is also excluded. This exception is aimed at protecting relegated clubs from committed longer term contracts entered into before their relegation. I must be honest here and haven’t checked to what extent this will benefit our club, if at all,

I hope this note is useful to understand where we stand as a club on this important issue for next season. Any questions, please raise through the usual Trust channels

City skipper Joe Ralls

The Trust would like to thank Joe Ralls for his enormous contribution to Cardiff City, both on and off the field, over 15 fabulous years.

Fully committed to the cause whenever he played, Joe will always have a special place in the hearts of Bluebirds fans.

His more than 400 appearances for the club  is special in the modern world  of football when many players tend to move between clubs.

We wish Joe all the very best for whatever route he takes in his continuing football career and hope to see him back at the Cardiff City Stadium in the future.