Scarlets record loss of more than £2m for 2020-21

Parc y Scarlets replaced Stradey Park as the Scarlets' home ground in 2008

Scarlets have recorded a loss of almost £2.4m for the financial year ending June 2021.

The Welsh region had made a £35,000 profit for the 2019-20 financial year, but had warned there would be "significant" losses in their next accounts because of Covid-19.

The effects of the pandemic is also demonstrated by the turnover of £5.78m, compared to £12.5m in 2020-21.

In comparison, Cardiff recently recorded a loss of £1.6m.

For the vast majority of the 2020-21 season, fans were unable to attend games at Parc y Scarlets under government lockdown regulations.

"The impact of Covid-19 on all professional sport has been dramatic, making these results difficult to compare with any other season," said Scarlets chairman Simon Muderack.

"With the support of our commercial partners, season members, loyal fans, players and staff we have managed to navigate another difficult year."

The Welsh Rugby Union (WRU) has renegotiated the terms of a £20m loan to Wales' four regional teams, who will now repay it over 20 years.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) was negotiated by the WRU for the four professional sides in 2020.

The original five-year repayment period was viewed as unfavourable. Under the new terms, the regions will pay back the loan at £1m per year.

The Scarlets were given a £5.5m loan out of the overall £20m and also received a £2.7m grant from the Welsh Government in January 2021.

"Maintaining a strong balance became a priority," added Muderack.

"Our thanks to the WRU for their support, securing a loan and to the Welsh Government for its support under the Spectator Survival Fund."

Muderack confirmed measures like furloughing staff and salary reductions, including players, had been necessary to "ensure the long-term financial health of the Scarlets".

The chairman also thanked commercial partners and season-ticket holders who had "allowed Scarlets to retain the cash within the business".

"There is much work to do as we emerge from the effects of Covid-19, but as we leave this challenging period behind us, we are optimistic for the future with our fans back watching our own brand of exciting rugby," added Muderack.