The idea of a second professional side in Wales was mooted before Celtic Crusaders had even kicked a ball. It was always the Crusaders' plan to help to form a new club in the National Leagues should they reach Super League. Although the original idea was for this to be from one of the exisiting Welsh Conference Premier clubs.

The idea was also talked about in mid-2009 when the Crusaders were told be the RFL that Super League Reserves would be turned into an under 20 competition, a move that could have halted the development of rugby league players in the area after they turned 21 years old and according to the RFL's chief executive, Nigel Woods, the formation of Celtic Crusaders in Bridgend lead to an increased participation in Welsh rugby league of 300% during their first four years as a club.

The formation of the Scorpions was accelerated after the Crusaders moved north to Wrexham. Some players will be dual-registered with the Crusaders but the Scorpions are a seperate entity in their own right and are owned by a consortium of businessmen led by businessman Phil Davies.

On 22 December 2009 the club adopted the name South Wales Scorpions RLFC folowing a competition to name the team won by James Bowes.

The initial batch of players were selected from an open trial plus a few signings from others clubs. 99% of the squad in 2010 will consist of Welsh-qualified players with almost all of them being Welsh-born.

Before a ball was kicked, the club celebrated its first international players, Loren Quick and Lewis Reece, who played for Wales and Great Britain at under 18 level.