Cardiff City FC Chairman Mehmet Dalman issues the following update to all supporters:
I'd like to begin this correspondence by wishing you all a Happy New Year.
There's no ignoring the fact that the second half of 2024 presented difficulties. We have the opportunity of putting a lot right and moving forward, but to do so we must try to resolve some of the fixable issues that are disuniting us.
The Board and I recognise that greater voice to the widest possible group of supporters is a necessary part of this and you have our commitment to more regular communication with you. I'm sure that members of our recognised supporters' bodies and those who sit on the Club's Fan Advisory Board will be able to attest to the regularity with which we offer consultation and discussion, but to the broader supporter base who we've not had personal time with, formally or informally, this is a chance to clarify some of the questions we've heard you ask.
As our Chief Executive Officer, Ken Choo, stated very clearly to Cardiff City Supporters' Trust on New Year’s Day, our owner, Vincent Tan, remains wholeheartedly committed to Cardiff City Football Club. He is determined to get us back to the Premier League. Our day-to-day dialogue with the owner is extremely healthy and united for the same common cause: the betterment of Cardiff City.
STRATEGIES
The overall longer-term strategic objective for the Club is for it to be a viable concern: that is, financially sound. The Championship is challenging as it doesn’t have a big pool of money, unlike the Premier League.
The Board's responsibility is to manage the gap between income and cost, calling up on the shareholder to meet the demands of the difference. Putting it plainly: Vincent Tan must bridge that gap. Over the last year or two we have reduced that gap by improving revenues whilst continuing to invest in the squad. In an ideal world, we’d like not to be a burden to the owner. Vincent Tan has more to lose financially than anyone and is still bank-rolling the Club monthly. The aim of this strategy is to attain financial independence because this would then give the Board more decision-making independence. We want to continue building towards this.
Another financial priority of the Board of Directors is to ensure that the Club is debt free. The Club has no debt to any financial institution, be it banks, hedge funds or any other mezzanine financiers. The Club does not want to be burdened with interest charges that have cost other clubs dearly.
To hear criticism of the Club breaking its promise of being debt free is again misleading and quite unfair. The majority of the 'debt' is only to the owner and he can choose, after advice from the CFO, to write that off.
As we move forward, the objective is to create a football management environment that can ensure stability, continuity and build a team that can compete. We believed that Erol Bulut would be the answer after a promising first season in charge, but the extremely poor start to this campaign necessitated the need for us to change and thus, strategy is affected. We are in a relegation battle, let's be clear about that; the focus is now on winning that battle. The priority becomes about a shorter-term strategy and that clearly is retaining our Championship status. The January window is an opportunity for us to fix some of the problems we have on the pitch, plus there are other things we may be able to do, discussions of which are ongoing.
One issue that is regularly put to me is whether we have the need for a Director of Football. I've always been open in dialogue in saying that greater football expertise on the Board and in management, would be valuable, but that's not to say imperative. Over the last few years our recruitment team has grown and provides good support to the management and the Manager in shaping the team. Operations management is extremely stable and efficient. The question of Director of Football will continue to be discussed amongst the Board and with the owner.
INVESTMENT
In respect of the January transfer window and potential ins and outs, I can assure supporters that Vincent is looking to be as supportive as possible within our structure. We'll see some loan deals, as the January window often lends itself to these with it being a seller's market, but I expect some permanent transfers to give us options and more quality, too. We'll see some younger players leave on loan and others, permanently.
Early in September, the Club announced that initial ground works had begun on a new First Team Training Ground near Hensol Villas in the Vale of Glamorgan. Works have progressed on this autonomous state-of-the-art facility, with the structural stage of development due to begin this summer. A further update will be available to supporters via Club channels at that time.
There has also been significant investment in the Club's Academy, exemplified by the opening of the Academy Training Centre in Llanrumney in September 2023. Within the Academy, our staff's hard work continues as they look to ensure that our young players are prepared for the rigours of life in senior football. We have benefitted from several of our young players stepping up into the First Team environment over the past few years, with 25% of our current squad being Academy graduates. We expect to see the Academy's loan strategy pay dividends this coming month, as we look to provide tailor-made loan experiences for our young prospects. Our staff in Llanrumney and the Vale work together to benefit our players and bolster the First Team environment, looking at one, three and five years as measures for squad building, with alignment in recruitment.
Finally, I think it extremely important that we acknowledge the Club and its Foundation’s investment in Cardiff’s local communities and grassroots. For the year ending in 2023, Cardiff City Community Foundation has demonstrated £17.9 million of social impact value, rising from £11 million the previous year.
FOOTBALL GOVERNANCE BILL & FAB
In respect of football governance and the Football Governance Bill, Steve Borley and Philip Jenkins (Finance Director) represent the Club at EFL level with Wayne Nash and Paul Corkrey (SLO) doing so operationally. All stakeholders are engaged and all Fan Advisory Board meetings are documented and are available via the Club website.
As a Board, we welcomed the early adoption of an FAB and I’m confident that in the longer term it will be for the betterment of all of us associated with the Club.
WELSH LEAGUE CUP
Following discussion at length with Ken Choo and Steve Borley on this matter, I can say that Cardiff City, Wrexham, Swansea City and Newport County have signed up to an agreement to help the Welsh football pyramid by hopefully improving the UEFA co-efficient of Welsh clubs.
The Club is confident that any participation in this trial would not affect our EFL status for there is no mechanism for Championship stakeholder status to be removed; this only happens upon relegation, promotion or going out of business. We are not concerned about fixture congestion, recognising that both Wigan Athletic and Millwall have recently competed in both European and Championship competitions in recent years.
The proposal is that money earned will be shared with all clubs and that an element will benefit grassroots football within Wales. Further clarifications will be sought, and updates given thereafter.
I hope this letter has been helpful and thank you for your continued support in to the New Year.
Mehmet