Carmarthenshire Council agrees new loan deal with the Scarlets
Carmarthenshire’s Executive Board has agreed new terms on its financial agreement with Scarlets Regional Ltd, resulting in increased income for the county council.
Under the amended terms, the club will pay interest on the council’s £2.616million loan at 3.5 per cent above the bank’s base rate, a deal that the Executive Board considered a better return than any other commercial investment.
It means that the council will now receive £8,000 more in interest from the club per year – a figure which amounts to some £104,000 annually.
In addition, the income thresholds at which the club is required to pay rent on the Parc Y Scarlets stadium have been dropped from £2.2million to £1.5million, and £2.8million to £2million, bringing forward the potential for the council to generate rental income for the facility.
Cllr Jeff Edmunds, Executive Board Member for Resources, said: “This is a sound commercial decision – an interest rate of 3.5 per cent above the base rate makes commercial sense in the long term.”
Leader of the council, Cllr Kevin Madge, added: “The Scarlets put Carmarthenshire on a global platform, and we will get the long-term benefits of that as well.”
Executive Board took the decision after a presentation from Scarlet Chief Executive Mark Davies, who illustrated the impact the club has on the local economy to the tune of £16million a year, as well as the level of community work the players undertake.
And whilst acknowledging the club’s financial difficulties, he was able to demonstrate forecasts which show year-on-year improvement.
Mr Davies, and Nigel Short, the club’s Chairman, have been invited back to council to make the same presentation to all members in the near future.
Executive Board Member for Regeneration, Cllr Meryl Gravell added: “I am so proud that as a council we have been there to support the Scarlets.
“When you hear about the economic impact in the area, the future of the Scarlets is very important for the economy, and the area, let alone all the work they are doing in the community.”
Under the amended terms, the club will pay interest on the council’s £2.616million loan at 3.5 per cent above the bank’s base rate, a deal that the Executive Board considered a better return than any other commercial investment.
It means that the council will now receive £8,000 more in interest from the club per year – a figure which amounts to some £104,000 annually.
In addition, the income thresholds at which the club is required to pay rent on the Parc Y Scarlets stadium have been dropped from £2.2million to £1.5million, and £2.8million to £2million, bringing forward the potential for the council to generate rental income for the facility.
Cllr Jeff Edmunds, Executive Board Member for Resources, said: “This is a sound commercial decision – an interest rate of 3.5 per cent above the base rate makes commercial sense in the long term.”
Leader of the council, Cllr Kevin Madge, added: “The Scarlets put Carmarthenshire on a global platform, and we will get the long-term benefits of that as well.”
Executive Board took the decision after a presentation from Scarlet Chief Executive Mark Davies, who illustrated the impact the club has on the local economy to the tune of £16million a year, as well as the level of community work the players undertake.
And whilst acknowledging the club’s financial difficulties, he was able to demonstrate forecasts which show year-on-year improvement.
Mr Davies, and Nigel Short, the club’s Chairman, have been invited back to council to make the same presentation to all members in the near future.
Executive Board Member for Regeneration, Cllr Meryl Gravell added: “I am so proud that as a council we have been there to support the Scarlets.
“When you hear about the economic impact in the area, the future of the Scarlets is very important for the economy, and the area, let alone all the work they are doing in the community.”
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