Cardiff Rugby chief executive Richard Holland has revealed the club do not currently have sufficient money to contract enough players and coaching staff to form a squad for next season.
In a letter to fans, he confirmed bosses explained the stark situation facing them to players last week.
WalesOnline this week revealed 12 Cardiff players currently earning between £50,000 and £250,000 a year have been told they can't be offered more than £30,000 for next season amid financial cuts in the game. The situation has been exacerbated because the four professional sides have to honour the existing contracts of National Squad 38 players under a new deal, with the WRU no longer effectively paying 80% of their wages.
