Wasps downward spiral... (29 Viewers)

[chiefdave]

Richardson has always been primarily interested in land development

They even admitted that when they described the Wasps Group as a property development company that happens to have a rugby club attached to it. Of course certain sections of the local media and their fans decided to ignore that.

 

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[jordan210]

According to one user on ADVFN says payment has not been received.

 

[chiefdave]

The Ricoh is attached to £35m debts that are impossible to pay back and extremely difficult to refinance. I'm 95% sure that they won't have the stadium come May 2022

Was listening to a round table with some economists discussing the current situation and the financial issues we'll face. They were talking about the companies likely to go under early on and it was pretty much a perfect description of Wasps.

Companies which are running at a loss and have their assets heavily leveraged. They even singled out companies who have had to get their finance via the bond market as other sources of funding consider them too high of a risk.

May 2022 may seem a long way off now but with the current crisis and Brexit still to come I'm far from convinced refinancing is going to be the walk in the park a lot of people say it will be.

 

[chiefdave]

Ricoh out of the running as a neutral ground if rugby restarts according to BBC

Not surprising when you look at one of the criteria the BBC has listed.

A pitch that can withstand a series of matches in one weekend.

 

[jordan210]

According to one user on ADVFN says payment has not been received.

Slight update. Another use has also NOT received payment yet.

Some are saying it's now been received.

 

[SBAndy]

May 2022 may seem a long way off now but with the current crisis and Brexit still to come I'm far from convinced refinancing is going to be the walk in the park a lot of people say it will be.

The way I see it is that their only option to refinance would be to again look to the bond market, but with significantly increased interest rates to take into account the higher risk attached. They’re fucked.

 

[CCFC54321]

Don’t tell me behind the scenes that there isn’t no sleeepless nights and no worries at all their side?

if any wasps ‘fan’ thinks everything is rosy and ‘to plan’ then there mentally sick or haven’t a clue on finance.

 

[Sky Blue Harry H]

Extract from their board (apologies if already posted)
Re: Wasps finances
Blanchefleur 12 May, 2020 10:04
Richardson sold his insurance business and made 53m euros before tax. He has ploughed £18m into a company that annually makes a loss of £10m and this year the losses could be double that figure. It would be hardly surprising that if an opportunity to make a return on his investment arose he would ensure that he kept the money for himself rather than toss it into the money pit.
Tomorrow the 6 monthly dividend on the bonds is due...£1.1375m. There has been no income and the overheads still needed paying. How much more of his fortune is he going to invest into Wasps when clearly the model does not work as the annual losses demonstrate

 

[CCFC88]

The bond dividend has been paid

 

[fernandopartridge]

The bond dividend has been paid

It will be paid, as a secured debt they'll pay that over anything else I reckon.

 

[Sky Blue Harry H]

Rugby's top players are lauded at international level - even I enjoy the World Cup, Six nations stuff, but club level rugby doesn't interest people to the same level. Players' salaries are disproportionate to club level interest - hence why I suspect Wasps have slowly ditched the Galactico players. Unfortunately for them (hopefully great for us) the coronavirus timing has left them even more vulnerable than they already were). They will be begging us to come back *but blues will want the income too). Whilst fans can't attend, I'd be tempted to turn the screw on Wasps (likely to be a buyers market)

 

[Brighton Sky Blue]

Rugby's top players are lauded at international level - even I enjoy the World Cup, Six nations stuff, but club level rugby doesn't interest people to the same level. Players' salaries are disproportionate to club level interest - hence why I suspect Wasps have slowly ditched the Galactico players. Unfortunately for them (hopefully great for us) the coronavirus timing has left them even more vulnerable than they already were). They will be begging us to come back *but blues will want the income too). Whilst fans can't attend, I'd be tempted to turn the screw on Wasps (likely to be a buyers market)

100% of the revenues in exchange for a peppercorn rent. Start there then budge slowly

 

[CCFC88]

It will be paid, as a secured debt they'll pay that over anything else I reckon.

Yea, like I said, it has already been paid

 

[tisza]

They will be begging us to come back *but blues will want the income too). Whilst fans can't attend, I'd be tempted to turn the screw on Wasps (likely to be a buyers market)

But there's also a point where time starts to work against City if the owners don't have a separate plan for at least land purchase for new stadium. League isn't going to let us keep groundsharing outside the City on the theory Wasps may cave/go bust etc.

 

[wingy]

WASPS 22 retail bond price (WAS1) - London Stock Exchange.

Three trades of 10k each on the ninth.

 

[chiefdave]

WASPS 22 retail bond price (WAS1) - London Stock Exchange.

Three trades of 10k each on the ninth.

At 47.75 as well, someones lost some money. Don't think even the biggest pessimist on here thought the price would ever go that low.

 

[CCFC88]

At 47.75 as well, someones lost some money. Don't think even the biggest pessimist on here thought the price would ever go that low.

Especially this close to redemption date

 

[Peter Billing]

Stuart Cain has walked, was Chief Exec of the non rugby part of the business.

Warwickshire set to appoint Stuart Cain as new CEO | ESPNcricinfo.com

Sensible to get off the boat before it meets the iceberg.

 

[shepardo01]

Stuart Cain has walked, was Chief Exec of the non rugby part of the business.

Warwickshire set to appoint Stuart Cain as new CEO | ESPNcricinfo.com

Sensible to get off the boat before it meets the iceberg.

This is interesting!

 

[chiefdave]

Stuart Cain has walked, was Chief Exec of the non rugby part of the business.

Cain's to-do list is likely to include the acquisition of a naming-rights partner for Edgbaston

Can see why they gave him the job as he's done such a good job of getting a new naming rights deal for the Ricoh!

He's only been chief exec for 9 months but you can't blame him for getting out at the first opportunity.

 

[bradwellskyblues]

i understand he had a very good relationship with ccfc so from that point of view not great. However it does seem that no one stays very long at wasps we can only speculate why

 

[Liquid Gold]

:emoji_notes:They're going buuuust
They're going buuuust
They're going bust
They're going bust
They're going buuust:emoji_notes:

 

[Grendel]

This is interesting!

Wasn't he the guy CJ, Moz Kalns and co were applauding in their "blame all sides" protest?

 

[CCFC54321]

Stuart Cain has walked, was Chief Exec of the non rugby part of the business.

Warwickshire set to appoint Stuart Cain as new CEO | ESPNcricinfo.com

Sensible to get off the boat before it meets the iceberg.

You don’t start applying for new jobs less than 9 months into it without bloody good reason!

We all know why he has left and would be interesting reading when or if spills the beans.

 

[shepardo01]

Wasn't he the guy CJ, Moz Kalns and co were applauding in their "blame all sides" protest?

Not sure.
I was always under the impression that it was Eastwood. The tone of their very staged open e.mail calling on them to do something, that started along the lines of,
"Dear Mr Eastwood, I hope this email finds you well and on good form"
suggests a few emails and meetings have taken place between them. "On good form"... urrrgh!
Don't know though Grendel.

 

[Grendel]

Yeah its Cain

Save Our Sky Blues: This is what happened during day of action

 

[shepardo01]

Interesting from FB forum related to EU commission and a grant for 20 mil requested in 2014 by our beloved Council...
What year did Wasps appear!?
Apparently link to grant details now conveniently dead:

 

[jordan210]

Interesting from FB forum related to EU commission and a grant for 20 mil requested in 2014 by our beloved Council...
What year did Wasps appear!?
Apparently link to grant details now conveniently dead:
View attachment 15112

You can get to the document that shows the request. shame the links don't work. I assume after x amount of time they are taken off.

So CCC could have used an EU grant for state aid. Im sure the EU look favourably on that.

 

[Brighton Sky Blue]

You can get to the document that shows the request. shame the links don't work. I assume after x amount of time they are taken off.

So CCC could have used an EU grant for state aid. Im sure the EU favourably on that.

If true that’s a game changer

 

[jordan210]

Here is the link to that document. Page 44 I believe

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2014:190:FULL&from=EN

 

[Nick]

Whats the link to Wasps?

Looks like it was for this? Coventry Investment Fund supporting regeneration and jobs | CWLEP

 

[chiefdave]

Here is the link to that document. Page 44 I believe

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2014:190:FULL&from=EN

Doubt there is much to this, just seems like EU regional investment, nothing to suggest it is the money used to bail out ACL.

Must be a list of who has had grants / loans from that fund somewhere. Would expect it to be on the CCC site but it comes up as page not found.

 

[chiefdave]

Premiership players fear some clubs could go bust by Christmas

 

[tisza]

surely would have to appear in Council accounts and Wasps

 

[jordan210]

Doubt there is much to this, just seems like EU regional investment, nothing to suggest it is the money used to bail out ACL.

Must be a list of who has had grants / loans from that fund somewhere. Would expect it to be on the CCC site but it comes up as page not found.

Yeah I think someone has seen CCC and Eu and put 2 and 2 together. As it just says Coventry Investment Fund its very open ended.