The Welsh Rugby Union has confirmed its intention to sell Cardiff Rugby to Y11 Sport & Media.
The Union and Y11 will now discuss the final details of the agreement, excluding any other company that applied to buy Cardiff Rugby.
The WRU said the conditional agreement in principle would mean new ownership for Cardiff Rugby and “ensure a notable milestone in the history of Welsh rugby – also ensuring the stability and long-term future of the capital club under private ownership”.
The moves comes as a result of an unanimous decision of the Welsh Rugby Union Board at a meeting held on 19 January.
That decision was made in order to ensure the most solid financial future possible for Cardiff Rugby, the WRU said, adding that the development means that the club can secure specific and long-term investments. The Board's commitment to Cardiff Rugby as well as the club's brand and history were considered, when following the criteria of the decision making process, the WRU said.
Once the purchase is confirmed, Y11 will be the new owners of Cardiff Rugby and the club will continue to be independent and play their games in the capital.
Y11 will also remain owners of the Ospreys and will compete in the United Rugby Championship and European Competitions (EPCR) until at least the end of the 2026/27 season.
The Welsh Rugby Union and Y11 Sport & Media will discuss the final details of the agreement between each other for a period of up to 60 days, which will allow the due diligence process to be thoroughly completed.
After the maximum period of 60 days, the purchase will be confirmed and the final details will be shared with everyone involved in the process.
The Welsh Rugby Union said its priority is to continue to support both clubs, sharing current and relevant information throughout the next stages of the process.
The Union said it had contacted the other company that applied to buy Cardiff Rugby to explain the decision and the Welsh Rugby Union has thanked them for their interest and for playing their part in this process.
