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Scarlets considering WRU lifeline Scarlets saved by new investment
(40 minutes later)
Llanelli Scarlets are considering an offer from the Welsh Rugby Union which could safeguard the region's future. Llanelli Scarlets say they have secured a new financial backer to safeguard the region's short-term future.
The WRU haS made a "substantial offer" to buy the lease to the Scarlets' Stradey Park home, giving the region vital funds to continue operating. Just hours after receiving a rescue offer from the Welsh Rugby Union, the Scarlets announced they have struck a deal with businessman Tim Griffiths.
A Scarlets request for a £2m loan had been turned down by the WRU but the governing body now hopes they have found a compromise to offer assistance. The Scarlets say the new funding will ensure they will be able to operate until the early part of next year.
Delays in building a new stadium has put the Scarlets' future at risk. The region had been seeking extra funding to cover the cost of the delay in moving to a new stadium.
The Scarlets want to build 450 houses on their Stradey Park ground, as part of plans for a new 15,000-seater stadium at Pemberton.The Scarlets want to build 450 houses on their Stradey Park ground, as part of plans for a new 15,000-seater stadium at Pemberton.
But the Stradey application was called in by the Welsh Assembly Government in July, just before it was due to go before Carmarthenshire County Council's planning committee.But the Stradey application was called in by the Welsh Assembly Government in July, just before it was due to go before Carmarthenshire County Council's planning committee.
Scarlets chairman and benefactor Huw Evans has said the delay will cost them £2m. We are pleased to have someone with such a strong commercial background and global contacts Scarlets chief executive Stauart Gallacher
The long-term future of the Scarlets, as with all our Regions, is of paramount importance to the game in Wales WRU group chief executive Roger Lewis Scarlets chairman and benefactor Huw Evans has said the delay will cost them £2m, and warned they would collapse by Christmas.
The WRU said it turned down the Scarlets' request for a £2m loan because of "financial and legal" reasons, but stressed it was sympathetic to the region's plight. The region rejected a loan offer from local businessman Clive Hughes in October, claiming the terms were "undeliverable".
The Scarlets had earlier rejected a loan offer from local businessman Clive Hughes, claiming the terms were "undeliverable". And days later, the WRU turned down the Scarlets' request for a £2m loan on "financial and legal" reasons, but stressed it was sympathetic to the region's plight.
WRU board members met on Saturday to discuss the possibility of an alternative rescue offer, and the plan to buy Stradey Park was approved in a second meeting on Monday night. On Monday, the WRU announced it had made an alternative offer to buy the lease of Stradey Park and so give the Scarlets "the funding to continue to operate at the top level".
Group chief executive Roger Lewis said he expects an answer from the Scarlets by the end of this week. But the Scarlets then revealed they had already secured new investment from London-based businessman Griffiths.
"The WRU is well aware of the financial difficulties surrounding the Scarlets' bid to move to a new ground within the town," said Lewis. Scarlets chief executive has not revealed how much money Griffiths has invested, but said there was no security attached to the investment.
"The Union and the club have been in constant negotiation over a long period of time to find a way to ensure that professional rugby not only survives, but thrives, in West Wales. "This is really good news for our region and we are very pleased to have reached agreement with Tim," said Gallacher.
"The long-term future of the Scarlets, as with all our Regions, is of paramount importance to the game in Wales and the WRU will do all it can to secure that and assist the Regions in their ambitions for success both domestically and in Europe." "It will provide us with immediate financial resources to help see the Scarlets through until the early part of next year and with it the opportunity to get a positive decision on our new stadium.
It is quite clear to me that without the new stadium the Scarlets' will cease to exist Scarlets benefactor Tim Griffiths
"We will still be seeking further funding for the Scarlets including studying the detail of today's WRU proposal which we have only just received.
"However we are pleased to have someone with such a strong commercial background and global contacts backing our business plans to move forward.
Griffiths, who was brought up in west Wales, will be given a place on the Scarlets board as a result of his "substantial financial investment".
He is chief executive of Williams Lea, a £450m turnover global company which supplies information management and business process services, and said that losing the Scarlets would be "devastating blow".
"It is quite clear to me that without the new stadium the Scarlets' will cease to exist which would be a tragedy for the area and for Welsh rugby," added Griffiths.
The Welsh Assembly is unlikely to reach a verdict until May on the housing plan for Stradey Park.The Welsh Assembly is unlikely to reach a verdict until May on the housing plan for Stradey Park.
Local residents argue the plans contravene planning regulations as the majority of the area is listed as a flood plain by the Environment Agency.Local residents argue the plans contravene planning regulations as the majority of the area is listed as a flood plain by the Environment Agency.
But Lewis added: "I will be writing to the Welsh Assembly to keep them up to speed with our dealings with the Scarlets and our feelings over their long-term future. But Griffiths says he is confident the housing plan and accompanying new stadium project will be given the go-ahead.
"It is vital that we find a way for professional rugby to operate on a firmer financial footing in the heartland region of West Wales." "I have carefully and independently verified the business plan for the new stadium.
"Although this is a different type of investment for me, I don't go into things blindly and my advisers have thoroughly evaluated the Scarlets' future plans both off and on the field."