WRU rejects Scarlets loan request

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A request by the Llanelli Scarlets for a loan of up to £2m from the Welsh Rugby Union has been turned down.

The Welsh region has warned they could go bust over a delay in redeveloping their Stradey Park home.

But the WRU board of directors turned down the Scarlets' initial bid at a meeting on Thursday night.

WRU chairman David Pickering said: "It is with sadness that we were unable to meet with the request... we are highly sympathetic to the Scarlets' plight."

Welsh rugby's governing body, which turned down the loan for "financial and legal" reasons, could yet reconsider if the proposal is redrafted.

"We will continue to monitor the situation and will endeavour to provide as much practical support as possible to the region to ensure they can continue to function effectively," Pickering added.

"It is vital for the good of Welsh rugby that we have four viable regions who are competitive on the field and financially sound off it."

Scarlets chief executive Stuart Gallacher indicated while the Union is their preferred option to raise the extra funding, they are exploring other offers of financial help.

We've had enquiries from people who wish to help Scarlets chief executive Stuart Gallacher

"We are obviously extremely disappointed by the decision of the WRU... this is a major setback in our campaign to secure the future of our region," Gallacher said.

"However, we will continue our discussions with the WRU, who we believe are supportive in principle of securing the future of the game in our region.

"As we have said previously, this would be a commercial loan and would be paid back in full subject to interest.

"We are also actively pursuing all other possible avenues of financial support from potential investors who are keen to ensure that top-class rugby remains in west Wales.

"We are a proud region. We are not in this position through choice or fault of our own.

"We have a sound business plan centred on a move to a new stadium which would enable us to clear our debts, double revenue from £4m to £8m and take the Llanelli Scarlets to a whole new level."

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.

Scarlets chairman and benefactor Huw Evans has said the delay will cost them £2m.

The cash-strapped region rejected a £2m loan offer from local businessman Clive Hughes this week, claiming the terms of the deal were "undeliverable".

"We've had enquiries from people who wish to help," Gallacher added.

"We are exploring all avenues. We are talking to people, from inside and outside of Wales and those meetings are on-going

"We have set up those meetings and we are continuing to have those meetings and hopefully something will come to fruition."

Scarlets chairman and benefactor Huw Evans made the stark revelation last week that the region could go bust by Christmas without extra funds.

Days later, local businessman Hughes came forward with a loan offer of £2m, but the Scarlets rejected it out of hand.

Gallacher refused to give details of the conditions attached with offer but said: "The gentleman in question, prior to his offer leaked it to the press.

"It was in the Wales on Sunday and we received his offer on Sunday afternoon, so as far as I'm concerned that shows the intent of the person involved.

"If he wishes to stand shoulder-to-shoulder with everyone else at Stradey, we'd be delighted to speak to him again."

Gallacher added: "He has been a constant critic of the board and myself for the last 10 years."