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According to the club’s latest accounts, the Scarlets have made a loss of £2.1 million in the 2024-2025 season.
This is the third year in a row that Welsh regions have lost more than £2 million.
The financial results cover the period to June 2025, down from £2.6m on the previous 12 months.
Turnover fell to £10.2m compared to £11.3m with gate receipts, sponsorships and money received from the Welsh Rugby Union (WRU).
The region reduced outgoings by 10%, reducing the wage bill from £8.24m to £6.94m.
A new share issue also increased finances by £940,000.
Scarlets’ debt remains in excess of £10 million, with money primarily owed to the WRU and Carmarthenshire County Council, who own the Parc y Scarlets ground.
While the figures in the latest annual report only cover the period up to mid-2025, comments on Scarlett’s hierarchy of financial reports also discuss events over the past 12 months.
The report said the operating environment for professional rugby in Wales was “challenging” and “deeply uncertain” with the WRU looking to reduce the number of professional clubs from four to three.
The union has said it will look to implement the controversial policy by the 2028-29 season, although it has How that process will take place has yet to be specified.
Welsh rugby’s governing body previously said a license would be granted for one professional side in the east, one in Cardiff and one in the west, which could pit Llanelli-based Scarlets and Swansea-based Ospreys against each other.
“The ongoing review of the professional game by the WRU, including consideration of a potential reduction in the number of professional clubs in Wales, has created an uncomfortable context for our players, staff, supporters and commercial partners,” Scarlets chairman Simon Muderack wrote in notes accompanying the account.
“The directors have engaged closely and constructively during this period to protect Scarlett’s long-term interests.
“With this background, the Scarlets are confident and determined about our future. We strongly believe Park Y Scarlets will be the best club rugby stadium in Wales, if not the UK.”