Scarlets -£5.7m net worth. - accounts published.

http://companycheck.co.uk/company/03389199

Cash at Bank : £260,621
Net Worth : £-5,739,131
Total Current Liabilities : £9,197,055
Total Current Assets : £618,909

If the Scarlets are well placed compared to the Blues and Ospreys then it's going to be interesting to see how they are doing.

alyn - this is for the period up to June 2010. Our accounts will be looking a lot different now (i.e better)

rugbydreamer wrote:alyn - this is for the period up to June 2010. Our accounts will be looking a lot different now (i.e better)

Accounts filed on: 30/03/2012

Something isn't right there, why would the post these accounts 8 days ago, for 24 months ago, I think the 2010 bit is wrong.

if it is, then all the graphs are wrong as well, because they all only go up to 2010 too.

I think the whole thing is wrong!

rugbydreamer wrote:I think the whole thing is wrong!

Hmm then maybe the accounts were submitted on the 30/03 but they havent been updated on the the Scarlets accounts page yet?

I dunno, could be Alyn, seems a bit strange to me!

The latest figures I've seen go up to June last year I think, there's a thread on it on SF. We are still just under £2m in the red, but we have taken £1m off that debt in a year, so over the next two years, if we keep taking that much off it, we should be near enough to breaking even in 2013 as was originally planned.

I don't pretend to understand accounts/assets etc though, so gooness knows what the situation is really like!

rugbydreamer wrote:I dunno, could be Alyn, seems a bit strange to me!

The latest figures I've seen go up to June last year I think, there's a thread on it on SF. We are still just under £2m in the red, but we have taken £1m off that debt in a year, so over the next two years, if we keep taking that much off it, we should be near enough to breaking even in 2013 as was originally planned.

I don't pretend to understand accounts/assets etc though, so gooness knows what the situation is really like!

"I don't pretend to understand accounts/assets etc though..."

And yet you keep commenting on them! Lol, only joking. For anyone who is interested, from the Forlex Financial Directory;

Accounting Insolvency
A situation in which a firm or individual has a negative net worth. That is, accounting insolvency occurs when total liabilities exceed total assets on a firm's or individual's balance sheet. Accounting insolvency does not automatically equate to bankruptcy because the individual or organization may still be able to make monthly payments. This is what differentiates accounting insolvency from standard insolvency, which involves the inability to service debts. Nevertheless, creditors may force corporations with accounting insolvency to restructure payments or declare bankruptcy, depending on the specific situation.

Llanelli Scarlets have previously confirmed that they are not making monthly payments on their loan from the council - they are letting interest roll up, increasing the debt.

I thought the interest had been defered for a set number of years?

Deferring the interest is just trading a quick death for a slow one.

Unless the masterplan is to find a Russian billionaire oligarch that has a burning desire to invest in Llanelli sport.

Stranger things have happened.

Well I am an accountant (not a real doctor)

On companies house they have filed the accounts for the year to 30 June 2011 (need to be filed within 9 months of year end).

But the figures above could still be 2010 figures as these websites are notoriously wrong with their data. I may download the accounts later and give a quick analysis if anyone wants it.

Also I can see that Derek Quinnell resigned as a director in March and that interestingly this is a new name for the business. The Name 'Scarlets Regional Ltd' came in to being in Sept 2011 after it was changed from 'Llanelli Rugby Football Club Ltd'.

The Club side trade under the name Llanelli rfc Ltd and there is also a Llanelli Scarlets Ltd which is a dormant company probably incorporated just to protect the name.

I did an article for my blog last week about whether there was a long term financial worry for most Pro 12 teams:

http://redstagrugby.blogspot.com/2012/04/is-pro-12-sustainable-model.html

As part of the research I found a BBC article about the Scarlets dated in Nov 2011.

Their chief executive said that the money they bring in through rugby cannot cover their costs they spend on rugby. They are running at a loss. At the minute it is a loss of £700,000 a year and they hope to be able to break even next year. They still have to address having over £5.5 million in debt though.

red_stag wrote:Their chief executive said that the money they bring in through rugby cannot cover their costs they spend on rugby. They are running at a loss. At the minute it is a loss of £700,000 a year and they hope to be able to break even next year. They still have to address having over £5.5 million in debt though.

I think that they have done a fair bit to address that problem (lack on income) with the amount of non-match day, and non-rugby events that are held at the ground now.

They certainly have Scarlets. I think Man Utd played a match there didnt they for example?

They need to keep it up as rugby wise they are as solid a franchise/region etc as you could hope for.

stag - yeah it was Llanelli FC V Man Unt Reserves, they have darts there quite often, Swansea City Reserves play their home matches there, and there is an annual music concert/festival. I know that these things probably make a little dent into the debts however they are certainly a step in the right direction. I think it is a case of the reality of professionalism is finaly sinking home, and they have realised that their biggest oppertunity to make money has nothing to do with the rugby played on the pitch, but the utilisation of the ground for the other 300+ days a year.

They are definitely step in right direction. We do same with Thomond Park.

We have used Thomond Park for soccer internationals, rugby internationals, rugby league internationals. we have had Pink, Elton John, JLS, Rod Stewart etc all playing there, I think there was even a Masterchef filmed there.

Believe it or not Thomond is also used for weddings. Now that is my kind of bride!!

http://www.thomondparkevents.ie/type-of-events/weddings/

ScarletSpiderman wrote:

red_stag wrote:Their chief executive said that the money they bring in through rugby cannot cover their costs they spend on rugby. They are running at a loss. At the minute it is a loss of £700,000 a year and they hope to be able to break even next year. They still have to address having over £5.5 million in debt though.

I think that they have done a fair bit to address that problem (lack on income) with the amount of non-match day, and non-rugby events that are held at the ground now.

Unfortunately, this is what Cardiff Blues cannot benefit from at CCS.

Dave - Thats the real draw back to renting. Out of interest do they promote the events at the CCS (Like the international football etc) on the Blues website? If they do you would expect them to get some sort of cut of the profits.

ScarletSpiderman wrote:Dave - Thats the real draw back to renting. Out of interest do they promote the events at the CCS (Like the international football etc) on the Blues website? If they do you would expect them to get some sort of cut of the profits.

Only when the terms are unfavourable as they are at CCS.
However, Cardiff Blues still rent the Arms Park (£98k pa) which does generate non-matchday income and enough I would guesstimate to pay the rent at CCS, as daft as that may seem.
Not sure what else they advertise.