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The owners of the Arms Park have labelled a proposed joint venture with Cardiff Blues to redevelop the world famous ground as too risky.

Discussions over building a new state-of-the-art stadium have been ongoing for a couple of years now, with various plans being put forward.

The historic ground is owned by Cardiff Athletic Club, with the Blues leasing it under a tenancy agreement which runs until 2022.

The Blues have been attempting to secure a new long-term lease for a number of years.

That would give them the rights to go ahead with a major redevelopment of the site. Their plans have included a new 15,000 capacity covered multi-sports arena, along with commercial and property elements.

It appeared agreement on the lease was close earlier this year, with an £8m offer from the Blues to the CAC as part of the settlement.

But those talks fell through after reports of a possible takeover of the regional team by the WRU, which has led to Athletic Club chiefs citing “a lack of trust”.

The latest proposal has been for a joint venture project by CAC and the Blues, but now that appears to have been ruled out following a meeting last night.

All of which leaves the ambitious development plans at an impasse.

A statement by the Cardiff Athletic Club management committee reads: “For the last three years, CAC have held constructive negotiations with Cardiff Blues regarding a new lease to allow the redevelopment of the Arms Park to secure the future of first class and importantly for CAC, semi-professional rugby for Cardiff RFC.

“It emerged during this summer that Cardiff Blues were holding discussions with the WRU and indeed according to some sources had come to agreement with the WRU over the transfer of Cardiff Blues rugby and business activity, either on a temporary or permanent basis.

“Clearly this had an impact on lease negotiations that were substantially complete.

“The rugby section of CAC did not feel it appropriate to conclude the lease citing a lack of trust with the Cardiff Blues management, amongst other concerns. This position was supported unanimously by the CAC Management Committee.

(Image: Huw Evans Picture Agency)

“CAC has recently received an outline suggestion for a joint venture from a member of the Cardiff Blues board and through CAC rugby section, which was been discussed at last night’s CAC Management Committee meeting.

“A joint venture confers a substantial amount of responsibility and financial risk to CAC for professional regional rugby and a significant stadium and commercial development.

“The Management Committee considers that the CAC is not in a position to take such a risk. Nevertheless we have requested further detail and clarity on the proposal.

“Further the CAC Management Committee stand ready to pick up discussions over a new lease for Cardiff Blues as a more appropriate mechanism for securing the future of rugby at Cardiff Arms Park.

“For any agreement to be reached, CAC as a large shareholder in Cardiff Blues Ltd will require evidence of financial stability, assurances on the direction of regional rugby in the context of Cardiff Arms Park and a review of corporate governance within Cardiff Blues Ltd.”