Wasps downward spiral... (33 Viewers)
- Thread starter CCFC54321
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Liquid Gold
Well-Known Member
Nah, Les Reid invented COVID
TomRad85
Well-Known Member
I guess COVID hasn't been all bad then. Couple more lockdowns to starve out the insects anyone?
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jordan210
Well-Known Member
Another grim read if your a wasp fan. Behind a paywall mind you
www.theguardian.com
Wasps chief warns of drastic cuts in rugby union without government help
Stephen Vaughan has warned Premiership clubs will have to make drastic cuts in a struggle for survival unless the government agrees to a compensation proposal
fernandopartridge
Well-Known Member
It isn't pay walled it is free, you just need to register or click that you'll register laterAnother grim read if your a wasp fan. Behind a paywall mind you
Wasps chief warns of drastic cuts in rugby union without government help
Stephen Vaughan has warned Premiership clubs will have to make drastic cuts in a struggle for survival unless the government agrees to a compensation proposal
jordan210
Well-Known Member
I need to learn to pay attention !
But looks very grim for wasps.
"Vaughan, the Wasps group chief executive, said that without financial assistance, following the decision to put the return of fans to sports grounds on hold indefinitely, his club would lose £500,000 a month and that all options would have to be on the table, including further wage cuts, to avoid closure."
Even with fans in they did not turn a profit so isn't like having fans it would make a huge difference to start.
Wasps chief warns of drastic cuts in rugby union without government help
Stephen Vaughan has warned Premiership clubs will have to make drastic cuts in a struggle for survival unless the government agrees to a compensation proposal
AOM
Well-Known Member
Another grim read if your a wasp fan. Behind a paywall mind you
Wasps chief warns of drastic cuts in rugby union without government help
Stephen Vaughan has warned Premiership clubs will have to make drastic cuts in a struggle for survival unless the government agrees to a compensation proposal
If a vital income stream is cut off for months on end, the emphasis will be on owners to dig even deeper into their pockets.
If they decide that they have had enough of throwing their money down the drain and there is no government support, it would make survival very hard. It would mean nothing was off the table in terms of action that would need to be taken.
Hasn't their owner already been throwing money into a bottomless pit for years?
Very bleak reading for Wasps and rugby in general, and can't see where Wasps are going to get the income from.
At least football has a bigger pull and audience where a club could make some income from ifollow, TV coverage etc, but don't think a casual Wasps fan who just wants a day trip out to the Ricoh would cough up for something like that if available
torchomatic
Well-Known Member
Another grim read if your a wasp fan. Behind a paywall mind you
Wasps chief warns of drastic cuts in rugby union without government help
Stephen Vaughan has warned Premiership clubs will have to make drastic cuts in a struggle for survival unless the government agrees to a compensation proposal
Nah, mate. The Guardian is a free site.
Terry Gibson's perm
Well-Known Member
Why should the government help these clubs, there are far more pressing things to help than a few rich men’s play things
fernandopartridge
Well-Known Member
Just like covid presents the UK government with a veil under which to hide economic problems independent of covid, the case is the same for Wasps.
There might be some movement very soon to split the club from the stadium / group structure, possibly off the back of a bond default?
There might be some movement very soon to split the club from the stadium / group structure, possibly off the back of a bond default?
Liquid Gold
Well-Known Member
Government funding should be turned down for organisations like wasps that have just turned down large sums of money for political reasons.
Peter Billing
Well-Known Member
Exactly, they need their own house in order before asking for public money. They're already getting £5.3m in public funds, the furlough scheme, they had £12m in CVC money. Derek Richardson took this punt, he has to address costs first or he puts his hand in his pocket, that's the choice, the public shouldn't put in a penny to otherwise failing businesses.
HuckerbyDublinWhelan
Well-Known Member
Let’s face it - if this was fisher the telegraph and some of our fans would be going mental - “Gucci clad Joy Sappalla asks for tax payer bail out for private company football club”
Kneeza
Well-Known Member
You were probably thinking of the, I assume similar, Torygraph one. That's def behind a paywall.
£500k pm = £6m
Last year the trading loss was c£14m
They are doing better in the Covid period ?
Kneeza
Well-Known Member
Unlikely, eh?
chiefdave
Well-Known Member
Seems they're talking about clubs in general losing £500K a month due to covid so you'd have to add that to their existing losses and then also factor in that the conference and exhibition business will have completely collapsed.
You also have to wonder if fans will return as quickly as they do to other sports. We're told Wasps moving wasn't an issue as fans don't have a bond to clubs as you see in football. That being the case a significant chunk of people might decide its not worth the risk.
jordan210
Well-Known Member
How much do wasps owe to Richardson ?
Telegraph say last year was around £18m for a loan if he has been plugging more gaps he must be owed in to the £20 odd million. Wonder what his end game will be.
consolidated senior debt was £35.7m im guessing the interest on that will be high. So that would have grown too
Borrowing is
The capital balance of the loan from Wasps Finance Plc was £33.8m (31 December 2018 - £33.8m, 30 June 2019 - £33.8m). The loan is repayable in a lump sum repayment in 2022 and is subject to an interest rate of 6.5%.
The Group has also been provided with a loan of £18.3m (31 December 2018 - £18.4m, 30 June 2019 - £18.3m from D A Richardson.
The balance of the loan from HSBC Plc was £nil (31 December 2018 - £0.1m, 30 June 2019 - £nil). The loan is repayable over a 36-month period and is unsecured.
In the period, the Group has borrowed £0.5m from Close Leasing. The balance at 31 December 2019 was £0.5m (31 December 2018 - £0.3m; 30 June 2019 - £0.05m). The loan is repayable over a 12-month period.
In the period, the Group has borrowed £0.7m in respect of asset finance. The balance at 31 December 2019 was £1.4m (31 December 2018 - £0.7m; 30 June 2019 - £1.0m).
Telegraph say last year was around £18m for a loan if he has been plugging more gaps he must be owed in to the £20 odd million. Wonder what his end game will be.
consolidated senior debt was £35.7m im guessing the interest on that will be high. So that would have grown too
Borrowing is
The capital balance of the loan from Wasps Finance Plc was £33.8m (31 December 2018 - £33.8m, 30 June 2019 - £33.8m). The loan is repayable in a lump sum repayment in 2022 and is subject to an interest rate of 6.5%.
The Group has also been provided with a loan of £18.3m (31 December 2018 - £18.4m, 30 June 2019 - £18.3m from D A Richardson.
The balance of the loan from HSBC Plc was £nil (31 December 2018 - £0.1m, 30 June 2019 - £nil). The loan is repayable over a 36-month period and is unsecured.
In the period, the Group has borrowed £0.5m from Close Leasing. The balance at 31 December 2019 was £0.5m (31 December 2018 - £0.3m; 30 June 2019 - £0.05m). The loan is repayable over a 12-month period.
In the period, the Group has borrowed £0.7m in respect of asset finance. The balance at 31 December 2019 was £1.4m (31 December 2018 - £0.7m; 30 June 2019 - £1.0m).
chiefdave
Well-Known Member
When is their next interest payment and update on the state of accounts due? Thats the next hurdle to get over.
Also have to assume lack of events will mean the valuation of the Ricoh will nosedive given that increased business was the explaination for the way the value surged after Wasps takeover. Any drop will put them in danger of breaching the covenants again.
The key is going to be refinancing the bond. Remember we've still got the economic impact of Brexit, which is increasingly looking like no deal, to come. How likely is it they will be able to get the finance, and even if they do how much is the interest rate going to increase?
Also have to assume lack of events will mean the valuation of the Ricoh will nosedive given that increased business was the explaination for the way the value surged after Wasps takeover. Any drop will put them in danger of breaching the covenants again.
The key is going to be refinancing the bond. Remember we've still got the economic impact of Brexit, which is increasingly looking like no deal, to come. How likely is it they will be able to get the finance, and even if they do how much is the interest rate going to increase?
Terry Gibson's perm
Well-Known Member
Bridge has put his story on twitter and the city fans are all over him, we are really lucky at the moment not having that huge white elephant.
(The ground not him)
(The ground not him)
jordan210
Well-Known Member
Liquid Gold
Well-Known Member
I thought they did accounts every 6 months? If so aren't we due a mid year update sometime soon?
D
Deleted member 4439
Guest
Unfortunately, I seriously wouldn't put it past the Council coming up with something, even though of course they'd need to be careful of further evidencing their support for Wasps.
Peter Billing
Well-Known Member
Maybe in a month or month and a half. It's usually around end of October or early November, depends on the sign off, but that will be the for the 12 months to June-20. The last set in March were the half year, 6 months up to Dec-19.
Les has been sacked by observer apparently. hopefully he'll still have access to CCFC info and share what telegraph don't
Sky Blue Pete
Well-Known Member
Unbelievable run of results gonna finish top 4 and likely home semi. Financially may be struggling but can’t argue with the run of results. Maybe wasps and ccfc have brighter times to come
Kneeza
Well-Known Member
You can't argue with the results - but you CAN argue that most sides they've met since returning to play have put out much-weakened teams.
That won't happen in the play-offs.
Not sure if there hasn't been some industrial action at Bullivant media?
duffer
Well-Known Member
I can’t see anything about Les Reid being sacked anywhere, is this just a rumour?
As for Wasps, fair play to them, but their improved on-pitch performance doesn’t make any of their off-pitch shenanigans any less reprehensible, imho.
They were luck last night. They were losing to Harlequins and looking really poor. They only won after harlequins had a man sent off.
duffer
Well-Known Member
Without wanting to be unfair to them, they’ve had a bit of that. Bath were spectacularly disorganised too, when that game went to uncontested scrums (which is always a farce, imho) - no way Wasps should have won that one either.
Clearly the devil looks after his own.
Strange game that one. The second half wasps were more than useless...Without wanting to be unfair to them, they’ve had a bit of that. Bath were spectacularly disorganised too, when that game went to uncontested scrums (which is always a farce, imho) - no way Wasps should have won that one either.
Clearly the devil looks after his own.
Sky Blue Pete
Well-Known Member
Les hasn’t been sacked