Rugby region the Scarlets has a £17m-plus economic impact, the majority of which being felt in Carmarthenshire, shows independent research.
A report from London-based consultants SQW on behalf of Carmarthenshire County Council shows the club generated a £17.3m gross value added (GVA) in its 2024/25 season, from its direct, supply chain and induced effects.
Over a five years period the report projects this could exceed £102m, due to the potential for significant for further growth - although the number of professional clubs in Wales going forward is currently unclear with the WRU now considering a response to its consultation.
The GVA of the Scarlets for the Ƶ as whole consists of a £6.65m direct impact, £5.16m through the club’s supply chain, induced staff spending impact of £3.92m and £1.6m from the impact of visitors and supporters For the economy of Carmarthenshire the GVA has been calculated at £10.18m and £14.6m for Wales.
The research also shows that the club is one of the largest employers in Llanelli, with 112 full time equivalent roles. Through its supply chain spending and the induced spending of its staff, it supports a further 224 jobs - giving a total directly employed and support jobs number of 336. Jut over half (52% )of its employees live in Carmarthenshire, with 78% living within the south west Wales and 96% in Wales.
The median full-time equivalent salary was £36,025, higher than for Carmarthenshire, £33,310 , and Wales £34,303. The median salary is bolstered though by player salaries,. Excluding those earning more than £100,000 , the median salary reduces to £30,303.
In 2024/25, the club spent £4.58m with 266 direct suppliers. Of these, 66 were based in Carmarthenshire, and 157 in Wales. The report says: “Of the remainder, all but three were within the Ƶ. While some large suppliers are based outside of Wales (for example, utilities and telecoms providers), the local supplier footprint is likely to be larger than these headline figures suggest, since several firms based in England are likely to have branches and staff in Wales that are not captured in the data.
"It is also reported that Scarlets have been important in helping some smaller local businesses – especially in the food and drink sector – to become established, by enabling them to build a regular match day presence.”
Last year the Scarlets had 101 sponsorship partners, generating revenue of £1.48m. Analysis by the club show that 70% of sponsors are based in the Scarlets’ region, with a further 11% based elsewhere in Wales. Major sponsors include Welsh firms Gavin Griffiths Group, Owens Group, Castell Howell, Dyfed Steels, Cadog Homeware and CK Foodstores..
Responding to the findings of the research leader of Carmarthenshire County Council, Darren Price, said: “The Scarlets are much more than a rugby club. They are a catalyst for economic growth, a cornerstone of community wellbeing, and a proud ambassador for our region’s culture and values. Their continued presence and success are vital not only for Carmarthenshire, but for the future of regional rugby and those that from part of the region’s communities.”
On the supply chain side the report says: “ While some large suppliers are based outside of Wales (for example, utilities and telecoms providers), the local supplier footprint is likely to be larger than these headline figures suggest, since several firms based in England are likely to have branches and staff in Wales that are not captured in the data.
"It is also reported that Scarlets have been important in helping some smaller local businesses – especially in the food and drink sector – to become established, by enabling them to build a regular match day presence”
Total attendance across 11 home matches in the 2024/25 season was 72,712. This equated to an average attendance of 6,610, rising to over 11,000 for the derby match against the Ospreys. The report estimates that last season, 6,779 were away and 65,933 home supporters.
Montana registered luxury asset broker, House of Ƶ, whose chief executive Kirsti Jane Baker hails from Pontypridd, has a option to acquire a 55% equity position in the club. It is currently running the Scarlet day-to-day via a management contract.
In its last financial year to June end, 2024, the Scarlets had a turnover of £11.34m, of which £5.5m came from the WRU. It posted losses of £2.59m with net liabilities of £6.1m, with loans and borrowing due after one year of £9.8m.
For the current season the Scarlet s remain on a less advantageous funding deal from the WRU (Professional Rugby Agreement 2023), along with the Ospreys.
The two regions declined to sign up to the improved PRA 25 deal - which Cardiff and the Dragons now benefit from - citing concerns over the WRU’s acquisition of Cardiff back in the spring out of administration and having to finance trading losses, which was previously a liability for Cardiff’s benefactors in Phil Kempe an Neal Griffith.
The WRU has ended a consultation of the future of the professional game in which its preferred option was reducing the number of clubs from four to two. The board of the WRU will decide this month on which option to implement, which as well as going down to two could potentially see three clubs or four remaining, but two receiving a higher allocated funding from the governing body.
To date the Scarlets and the Ospreys, as well as the other two regions, have not signalled any willingness to merger, as a means of reducing the current number of clubs.
