Scarlets strengthen financial position for long-term growth

Scarlets strengthen financial position for long-term growth

The Scarlets have made a significant change to their financial constitution today (Monday 27^thSeptember) at a shareholders’ AGM, which will see the region’s debts cut by 40%.

The AGM gave the green light to a new initiative to strengthen the region’s financial footing in the long-term.  The region’s funding directors will now convert a major part of their loans into new shares in the Scarlets business – removing a significant volume of debt and boosting the region’s balance sheet.

The conversion of debt into equity by the region’s four funding directors is part of a long-term strategy to improve and re-structure the region’s financial constitution to allow it to become a more sustainable and effective rugby business, and with it create a wider platform for growth and investment in the long-term.

The share option initiative now allows the region’s 900 existing shareholders to subscribe to new shares, in a move that could potentially raise around £1million for the region.

The decision made at the AGM was described as “a very significant development and positive step forward” by the region’s chairman Huw Evans, who also announced that the Scarlets Board would also be strengthened with the addition of two global business leaders who were lifelong, passionate Scarlets supporters and had strong links with the region.

The new board directors, who join with immediate effect, are Tim Griffiths and Nigel Short.

Global business leader Tim Griffiths, originally from Newcastle Emlyn, returns to the Scarlets board after a 21-month departure which allowed him to concentrate on his expanding business interests. Mr Griffiths has been a funding director at the Scarlets since November 2006.

Nigel Short is Executive chairman of Penderyn, Wales’ only single malt whisky and recognised as one of the finest whiskies in the world. He led a £150m turnover world-wide steel industry business for 25 years which employed 1,500 people in six different countries as well as holding leading roles with a number of international businesses throughout his career.

Born and bred in the Cynon Valley, he has spent the last 17 years living in Carmarthenshire with his family and is a qualified rugby referee and has coached junior rugby at Whitland RFC for the past five years. He also runs a 400-acre organic lamb and beef farm in Carmarthenshire.

Nigel Short said:  “Scarlets is heart and soul rugby country and it is a great privilege to work with another iconic Welsh brand to help them achieve the status they deserve in the world.”

In addition, the region’s new Chief Executive, Mark Davies, who led Honda Motorcycles’ European business for more than 20 years, now sits on the Scarlets Board as an executive director.

The Scarlets Board members bring wide ranging experience and expertise across rugby and business and include Llanelli Association President former British Lions rugby great Derek Quinnell, former Llanelli captain Marlston Morgan, Scarlets heritage director Hefin Jenkins, Tinpolis Managing Director Ron Jones, actor and presenter Emyr Wyn Evans, Mike Bishop (Financial Director) and Funding Directors Huw Evans, Philip Davies, Tim Griffiths and Glan Wise.

Scarlets Chairman Huw Evans said:  “This is a very significant chapter in the way forward for this great rugby region and its supporters.  It gives us a platform from which to build over the next five years and to deliver a more robust and sustainable rugby business.

“We are delighted to be joined by two high-calibre and hugely experienced business leaders onto a strong Scarlets board – both of whom are committed Scarlets, have strong links with the region and are willing to give their expertise, vision and leadership to help shape the future direction of the business in the next phase in its development.

“They believe in the Scarlets values, understand our heritage and fully appreciate that rugby is at the heart and soul of our communities and back our commitment to develop great Welsh talent.

“Their vote of confidence in our future vision and involvement and influence will undoubtedly strengthen the Scarlets long-term; alongside the important support and expertise we already receive from our strong partnership with Carmarthenshire County Council.

“We are positive about the Scarlets’ future potential both in terms of rugby development and the top-class sports and entertainment facilities we have at Parc Y Scarlets. There is a strong team spirit here both on and off the field, the teams are working hard to get things right – and we have good reason to be excited about the future.”

Mr Evans paid tribute to the region’s many shareholders and supporters at the AGM.

He said:  “Our shareholders and many thousands of supporters are the lifeblood of the Scarlets. I want to take this opportunity to say that we are indebted to our 900+ shareholders, whatever their stake in our business, as well as all those who come to watch our games and support this team week-in-week-out.

“We thank you for what you have done and continue to do for the Scarlets as we look to grow our family and inspire new Scarlets supporters from near and far.”