Cardiff Blues Limited recorded a £1.9m pre-tax loss for the 2017/18 financial year, but saw a huge amount of debt written off as the benefactor era comes to an end.
Turnover saw an increase, up to just over £9.5m from £8.7m, as Cardiff Blues went on an incredible run during the second half of the season to finish fourth in the Pro14, qualify for the Heineken Cup and win the Challenge Cup.
However expenditure was also on the rise, up from £9.8m to £10.9m, accounting for an increased pre-tax loss, with Richard Holland noting in the strategic report that spend on the playing squad was up with key players tied down to new contracts.
There was some good news in the accounts though as debt came down from £15.7m in the previous accounts, to a current total debt of £4.1m. This is entirely due to the generosity of Peter Thomas and Martyn Ryan who, as required by Project Reset, have written off money owed to them.
Ryan has written of the entirety of a £875,000 loan, as well as £58,000 worth of interest on that loan, while Thomas has written off around £3.3m worth of the money owed to him, and the remaining £9.4m has been transferred into a capital contribution reserve.
Both men are thanked in the report for their incredible generosity, as it leaves Cardiff Blues effectively with a blank canvas financially to move forward with.
The question then is how, or maybe even if, Project Reset can fill the gap left by the benefactors?
Will it fail to do so and watch Cardiff Blues go to the wall, or have to take the begging bowl to Peter Thomas? Will it merely see us plateau with little chance of improvement until CVC potentially arrive? Or will it actually see us thrive?
Long odds on that last option.