Scarlets boss Nigel Davies admits they have let down their fans by failing to gain automatic 2010-11 Heineken Cup qualification via the Magners League.
Cardiff Blues ended the Scarlets' hopes with a 39-16 win at Parc y Scarlets on Saturday.
Davies said: "We feel we've let our supporters down, but that's where we are right now."
However, if they win the Amlin Challenge Cup, the Blues will secure the Blues a 2010-11 Heineken Cup spot.
Wales are guaranteed only three teams in next season's top-tier European tournament and the Scarlets are now unable to overtake rivals the Blues, Newport Gwent Dragons and Ospreys.
We've set a budget, which I'm really happy that we're working within and the business has got a bright future
Nigel Davies
Davies says losing key players for long periods such as Simon Easterby, skipper Mark Jones and Dafydd Jones to injury this season has cost them dear.
But he says the blow of finishing last of Wales' four regions in the Magners League will not deflect the Scarlets from their long-term aims.
He also believes missing out on Europe's top flight next season will not prove detrimental to their hopes of retaining the likes of skipper David Lyons or deter potential recruits.
Fly-half Stephen Jones has already ended speculation over his future by signing until May 2012.
Davies said: "I don't think it will have a major effect because I think the Magners League in its own right is a great tournament and the Amlin is a great tournament.
Boss Nigel Davies watches the Scarlets lose 36-19 to the Blues
"People who know what we're doing here and what we're trying to achieve, they're buying into it and that's why Stephen Jones has signed.
"We're managing within a budget. We've set a budget, which I'm really happy that we're working within and the business has got a bright future and I firmly believe that the Scarlets has as well.
"We've taken a knock, but we've got to come back strongly. We can't hide the fact that we're hugely disappointed and we feel we've let our supporters down, but that's where we are right now and we'll build from here."
Davies also believes Europe's Challenge Cup can provide strong competition for fans to enjoy next season.
He added: "It won't have any effect on our plans for next season. In terms of where we are it's not a one-year plan, it's a clear three to four year plan that we have been working on.
"We took a certain amount of a hit last season and we're in the process of consolidating and the fact that we've signed Stephen Jones shows that we have intent to move forward.
"Maybe in the [Amlin Cup] pool stages you can argue that the quality isn't the same, but there are going to be a lot of quality teams in there.
"And if you look at Toulon this season, for one, that shows the quality of teams that can be in this tournament.
"It's very difficult from season to season to know who the in-form teams and there's no doubt going to be some high end, quality sides in that tournament.
"We are where we are. We can't hide from it, we can't run away from it. There will be quality teams in there and it is a European competition.
"We'll be focused on doing very well in that tournament and if we can do that, our supporters will be happy with that.
"But we've also got to consider the importance of the Magners League and not write that off because it's a very, very good competition with high quality sides.
"Two Magners teams [Munster and Leinster] have reached the semi-finals of the Heineken Cup yet again so it shows that this League is very important."
Bookmark with:
What are these?