Scarlets announce new investment from US company
Scarlets moved to Parc y Scarlets in 2008
- Published
Scarlets have announced they have attracted significant new investment from a US-based company whose board members include former Welsh Rugby Union (WRU) chief executive David Moffett and ex-Wales fly-half Dan Biggar.
House of Luxury LLC (HOL) have agreed to eventually take a 55% stake in the organisation and will immediately acquire the current financial liabilities.
No figure has been provided about how much money has been invested but it is thought to be considerable.
HOL's dedicated sports and entertainment investment division, led by Moffett, will assume non-rugby operational leadership straightaway in partnership with the current board.
They will be responsible for commercial growth and future strategic vision, reporting directly to the Scarlets board, while working towards a full equity transaction of a majority share.
Investment at times of uncertainty
The announcement comes as Wales' four professional sides aim to survive the threat of cutting the number of teams to three or even two.
Ospreys have this week received planning permission from Swansea council to redevelop St Helen's.
Cardiff are currently owned by the Welsh Rugby Union (WRU) after going into administration in April, while Dragons have been the least successful side since the inception of regional rugby in 2003.
Scarlets say they will continue to work constructively with the WRU on the structural review but are "driven by the ambition to grow the club and safeguard its future."
"Scarlets is a rugby club that has been at the forefront of Welsh rugby and an integral part of the community of west Wales for more than 150 years," said Scarlets chief executive Simon Muderack.
"We are fiercely proud of what this club stands for and will continue to protect that legacy.
"This partnership is the start of a new era for our club, strengthening our position with new investment, new ideas and a shared ambition to return the Scarlets to the top of European rugby.
"The new deal with HOL puts the Scarlets in control of its own future as we act boldly to move forward with a partner that will add significant resources and ambition.
"Crucially, it enables a future where Scarlets will continue to play in Llanelli, retain Scarlets' strong identity and represent the whole of west Wales with pride."
A WRU statement said: "We are pleased to welcome House of Luxury LLC into the Welsh rugby family after the positive news today they will be forming a new investment partnership with the Scarlets.
"We continue to work constructively with the Scarlets and all of our professional clubs on the structural review of our professional game we are currently undertaking and remain focused on the formal consultation process which begins shortly."
- Published8 August
Return of Moffett
David Moffett left his role as WRU chief executive in 2005
Moffett heads HOL's sports and entertainment division, so the move will see his return to Welsh rugby.
The 78-year-old was the WRU chief executive when the initial five regions were launched in 2003.
HOL say they are an international luxury asset agency with a growing presence in global sport.
They bill themselves as a US global luxury asset agency behind landmark sales in ultra-prime real estate, sport, automotive and rare collectibles with a dedicated sports and entertainments division.
Scarlets and HOL say the new deal will bring:
Immediate financial stability with House of Luxury assuming all current liabilities
HOL strategic leadership and expertise to support commercial growth and helping shape future strategy during an unprecedented transition period for Welsh rugby
Additional investment into fan experience, player pathways and global partnerships
Leadership in navigating legal, structural and competitive reform within Welsh rugby
A shared strategy and vision with the Scarlets board to build a long-term, high-performance culture on and off the pitch and continue the club's significant contribution to the local economy, society and culture throughout the west Wales region.
"This is one of the most storied rugby clubs in the world and we believe it should be competing and winning at the highest level," said Kirsti Jane, HOL chief executive.
"We're here to make that happen and help drive the Scarlets' future success and protect its unique identity and legacy."