Welsh rugby is never short of drama, with the latest episode being the proposed majority takeover of professional rugby region, the Scarlets , by Montana-registered luxury asset broker, House of Luxury Group (HOL). The firm, led by its founder, CEO and chair, Kirsti Jane Baker, 36, originally from Pontypridd , has assumed non-rugby operational control of the club through its new sports and entertainment division. This week, we should hear from the WRU in detail about its plans to restructure the professional game, with the likely scenario being a reduction from four regions to two or three. Both the Scarlets and the Ospreys chose not to enter into a new funding agreement with the union (Professional Rugby Agreement 25), for various reasons - including worries over the WRU's acquisition of Cardiff Rugby out of administration (although it is looking to sell it back into private ownership), and effectively becoming its benefactor to cover trading deficits. The Dragons and Cardiff will now see a significant increase in funding from the union over the next three years and a decrease in passed-through union debt from NatWest - with their PRA 23 deals being prematurely superseded by PRA 25. The owners of the Dragons, including David Buttress, were always going to sign, taking the stance that the most crucial consideration had to be the interest of staff and players and the viability of the business. The former board of Cardiff, prior to the club's collapse and the WRU's acquisition of its assets from administration, were also inclined to sign. Despite some reservations about PRA 25, like the Dragons, they weren't going to reject increased funding from the union and reduced debt. Having not signed, the Scarlets and the Ospreys remain tied to the financially less favourable PRA 23, which will now continue until July 2027. This places additional pressure on the boards of the two regions to boost benefactor support. The proposed deal from HOL, via its new division House of Sports and Entertainment, comes as the Ospreys have agreed in principle to a rental agreement with Swansea Council at the soon-to-be redeveloped St Helen's ground in Swansea, where they plan to play from the 2026–27 season. They will temporarily reside at the Brewery Field in Bridgend for the upcoming season. But why opt to acquire a 55% share of a club whose future is far from certain? Simon Kozlowski, HOL's chief experience officer, stated that it currently has no interest in a merger with the Ospreys and its focus is solely on the Scarlets. Simon Muderack, Chairman of the Scarlets, along with fellow board members such as Nigel Short, would have undoubtedly conducted thorough due diligence to ensure the financial stability of HOL, its income source and possibly received formal confirmation from its bank(s) regarding its ability to invest long term in the club. Currently, it appears that HOL has entered into a management contract with the existing board and invested some initial capital while aiming for a majority ownership stake. In its statement, HOL claimed to have assumed the club's liabilities. It is believed that the WRU, which had no prior dealings with the business, was notified by the Scarlets' board just before they released their statement. The WRU still provides about half of the club's revenue. Under PRA 23, or any future funding agreement, it would need to carry out its own financial and fit-and-proper test - as any sports governing body would. This would also be required by NatWest if HOL were to assume the debt provision liability arranged by the union and passed on to the club, as well as by Carmarthenshire County Council due to its loan exposure. The WRU would also need to understand the source of HOL's income and information about its clients, as it would with any evaluation of a takeover of a Welsh club. The union could potentially engage a professional advisory firm to facilitate this process. If HOL seeks majority control, the WRU would also necessitate the transfer of liabilities to a UK-based entity, backed by personal guarantees. The downfall of Cardiff Rugby was largely due to its former benefactors Neal Griffith and Phil Kempe's reluctance to finance trading losses as stipulated in their ownership agreement with the club's previous board and the WRU. Their commitment was not made personally but through a special purchase vehicle established to acquire Cardiff Rugby - the Jersey-based Helford Capital, a company devoid of assets. This is why the WRU would demand a more robust commitment from HOL. The WRU will now decide what triggers their financial and fit-and-proper person test. Is it the current stage where HOL has an option to acquire 55%, or when they exercise that option? The WRU is clarifying this position. HOL is fully cognisant of the union's due diligence requirements and aims to cooperate towards a successful outcome. Company law in the US is considerably less rigorous than in the UK, excluding listed entities, Business Live reports. Whilst HOL was registered as a limited liability company in Montana last year, it isn't required to disclose financial accounts or details of its ownership structure. The only directors listed are Ms Baker and Nadine de Zoeten. Their respective equity positions, or whether there are other investors in the business, remain unknown. The scant information available in the public domain includes a trading address, which was a residential address in Calabasas, California, before being updated last week to an office address in Montana, where it was incorporated. However, Montana is not where it conducts its business. Deals can be brokered anywhere, through mobile phones or laptops, by connecting high net worth sellers and buyers. Montana is more obscure than other US states regarding publicly available private company data and is often viewed as America's onshore equivalent of the British Virgin Islands. There are, however, other US states, mostly Republican, with similarly light-touch business registration requirements. HOL was registered in Montana as a limited liability company, which benefits from the fact that owners are generally not personally liable for the business's debts. There is absolutely no suggestion HOL is not what they claim to be: a burgeoning off-market broker for luxury assets that has had a remarkable financial start with projected strong exponential growth. The question arises, though: surely there are more profitable ways to invest than owning a club in west Wales? The history of professional rugby, extending even to England, paints a nearly universal picture of financial loss, with clubs needing substantial financial backing from benefactors. Could it be that HOL believes they possess the "magic sauce" to break this seemingly commercial cycle of doom? However, west Wales is among the most impoverished regions in the UK, with relatively few large corporations boasting sizeable marketing and sponsorship budgets (although HOL could seek support from businesses regardless of their location). In its last financial year ending in June 2024, the Scarlets reported a turnover of £11.34m, of which £5.5m came from the WRU. It posted losses of £2.59m with net liabilities of £6.1m, and loans and borrowing due after one year amounting to £9.8m. It generated £1.5m in sponsorship, an area HOL will aim to boost. As HOL are not required to disclose their financials, this raises valid questions. They are looking to acquire not just a business, but a rugby club with a rich heritage and a fan base that extends far beyond Llanelli and its immediate surroundings. The only insight we can glean on financials comes from a recent interview on WalesOnline , where Mr Kozlowski revealed that HOL generates five times the Scarlets' total annual budget in profit every quarter. If we consider last year's revenues of £11m, that equates to a profit of £55m, annualised at £220m. As a broker, they would operate on a pre-agreed commission for assets sold. Let's consider an average brokering fee across asset classes of 5%. To generate a quarterly profit of £55m, assets worth more than £1bn would need to be sold. On LinkedIn, Ms Baker speaks of her plans to sell assets this year - including sports clubs, hotels, and luxury cars - valued at around $5bn. If you're selling a £100m yacht for a wealthy client, and let's assume a 5% broker fee, that equates to a gross profit of about £5m. Approximately 10 similar deals in a quarter would yield £55m. HOL operates in a market with potential for high returns, with relatively low costs beyond personnel. Two years ago, through a private fans group, Mr Kozlowski suggested the idea of HOL potentially acquiring Pontypridd RFC. However, according to the club's director, Mark Rhydderch-Roberts, no offer was received through standard direct channels or business advisory intermediaries. He stated: "Obviously we would talk to any potential investor looking to back the club, but no offer was made to the board from House of Luxury, a company we know nothing about." But what about Ms Baker, who isn't shy about promoting the strong trading performance of HOL on LinkedIn, while also candidly and refreshingly discussing previous wellbeing challenges and business failures. In a previous interview with Leaders Perception magazine, she revealed that she left school without any qualifications before turning 16 and becoming pregnant at 18. She was dismissed from her first job after being told she lacked the skills to sell. Before establishing HOL, she managed Monaco-based luxury car broker House of Motorsports Agency. She has also penned several business-related books. Her early business journey, alongside her husband Lloyd, involved setting up numerous UK businesses. According to Companies House, their first venture was Extreme Cage Fighting, registered from an address in Pontypridd in November 2009. They voluntarily removed the business from the Companies House register in April 2011. They then launched a wedding business called Simply Charming Events in 2010. They resigned as directors in November 2011, a month before an application to strike the company off the register. It was eventually dissolved via a compulsory strike-off lodged by Companies House in July 2014. She has also served as a director in now dissolved businesses Pink Dolphin Companies and Rise Companies, both registered from the same address in Truro, which were both compulsorily struck off the register in November 2019. Another venture, KLB Group, founded by Ms Baker and her husband last October, was issued with notice to be struck off in July unless it changed its registered address from a PO Box address within two months. During the pandemic and subsequent flooding in Pontypridd, they established the Baker Wilkins Foundation in 2020. This foundation provides grants of up to £10,000 to support businesses, as well as offering mentoring to help them recover. The foundation did not seek the VAT exemption benefits that come with charity registration. The only publicly known grant it provided - although there could have been more - was a sum of £3,000 to Energie Fitness in Pontypridd. This money was used by its owner, Jake Budd, to purchase new gym equipment. In 2021, the foundation was recognised at the Not for Profit Organisation Awards, winning the Best Business Funding Support Foundation category. The award was presented by Acquisition International, which is owned by AI Global Media Ltd. Like many business people, Ms Baker admits she has learnt from past mistakes. In a recent LinkedIn post, she stated: "Some people who know me will say everything I touch turns to gold. That's generous, but it's not entirely true. I've had my fair share of things that didn't work out, most of them when I was in my early 20s. "That doesn't diminish a single thing I've built since. People who know me, who've worked with me, partnered with me, trusted me with their rarest and most prized assets, will tell you I'm the best closer they've ever met. "People who don't know me? They'll judge from a distance, based on old chapters, public records, or narratives that don't even scratch the surface of what I actually do. That's the thing about operating off-market. It's not designed to be understood by the masses. It's designed to deliver results in a world most people will never see." Could the proposed takeover of Scarlets by HOL turn out to be one of the club's most significant developments? Presently, there are numerous unresolved queries surrounding the potential acquisition. Nonetheless, it's encouraging to see that Ms Baker and the Scarlets board plan to engage with the most crucial stakeholders - the Scarlets supporters - at an exclusive meeting at Parc y Scarlets this week.