Scarlets Financial Performance in 2024-2025
Scarlets finished 14th in the United Rugby Championship in the 2025-26 season. The club reported a loss of £2.1 million for the 2024-2025 season, as detailed in their latest financial accounts. This marks the third consecutive year the Welsh region has posted losses exceeding £2 million.
The financial results cover the period ending June 2025, showing an improvement from the previous year's loss of £2.6 million. Turnover decreased to £10.2 million from £11.3 million, with declines in gate receipts, sponsorship income, and funding from the Welsh Rugby Union (WRU).
In response, the region implemented a 10% reduction in expenditures, including a decrease in the wage bill from £8.24 million to £6.94 million. Additionally, a new share issue generated £940,000 to support the club's finances.
Despite these measures, Scarlets' debt remains above £10 million, primarily owed to the WRU and Carmarthenshire County Council, the owners of Parc y Scarlets stadium.
Context of the WRU's Review and Club's Position
Although the figures in the annual report only cover up to mid-2025, the Scarlets' leadership also addressed developments from the preceding 12 months. The report describes the operating environment for professional rugby in Wales as "challenging" and "deeply uncertain," particularly due to the WRU's intention to reduce the number of professional clubs from four to three.
The WRU has indicated plans to implement this reduction by the 2028-29 season, though the specific process remains undefined. The governing body has previously stated that one professional licence will be granted in the east, one in Cardiff, and one in the west, potentially placing Llanelli-based Scarlets in competition with Swansea-based Ospreys.
"The ongoing review of the professional game by the WRU, including consideration of a possible reduction in the number of professional clubs in Wales, has created an unsettling backdrop for our players, staff, supporters and commercial partners," Scarlets chairman Simon Muderack wrote in notes accompanying the accounts.
"The directors have engaged closely and constructively throughout this period to protect the long-term interests of the Scarlets.
Against this backdrop, the Scarlets remain confident and resolute about our future. We firmly believe Parc y Scarlets to be the finest club rugby stadium in Wales, if not the UK."
Recent Club Developments
Scarlets have confirmed the continuation of their head coach, Davies, on a two-year contract and have signed New Zealand forward Grace. The club's roster changes for the 2026-27 season include various ins, outs, and re-signings within Welsh rugby.
Significance of Signing the Professional Rugby Agreement (PRA)
Scarlets remain the only Welsh region yet to sign the Professional Rugby Agreement (PRA). The club's report indicated an expectation to commit to the PRA by the end of June, which did not occur; however, Scarlets stated they are "in the final stages of completing this agreement."
Signing the PRA is anticipated to assist in repaying the £4.8 million owed to the WRU, which includes loans taken during the Covid pandemic.
"A significant development during the year has been our work with the WRU on a new Professional Rugby Agreement (PRA25)," the report stated.
"PRA25 will relieve the regional clubs of a substantial portion of the Covid-related debt that has previously burdened the company and introduces a more sustainable funding model that provides greater long-term financial certainty.
The directors regard the conclusion of this agreement as a pivotal step in placing the club on a stable financial footing in the near term."
The report also notes that Scarlets continue to owe Carmarthenshire County Council £2.6 million related to Parc y Scarlets stadium.
Additional Financial and Legal Context
The report does not mention any legal disputes between Scarlets and the WRU concerning the governing body's takeover of Cardiff in April 2025, when the capital's professional side entered administration. Furthermore, no information is provided regarding US-based House of Luxury LLC (HOL), who were announced as potential investors in August 2025.
In April 2026, Scarlets issued a statement confirming they had secured "significant further investment" to ensure the "future stability of the club and wider region."
