Wasps complete 100% purchase of Ricoh (20 Viewers)
- Thread starter SimonGilbert
- Start date
chiefdave
Well-Known Member
So they've purchased ACL for £5.54 million plus taking over the £14.4m loan. Wonder how much SISU have spent on lawyers, administrators and liquidators since they have been here?
Can't see this as anything but bad new for us. I suppose at least it draws a line under things.
So onwards with the new stadium, or is there a viable way, that could be acceptable to Wasps, a long term rental deal can be structured that would make it a better option? If not then we have to all get behind the new stadium plan and push SISU to start making some real progress. There's no real reason now for anything to do with the new stadium to remain confidential and also no reason not to consider sites in the city.
Can't see this as anything but bad new for us. I suppose at least it draws a line under things.
So onwards with the new stadium, or is there a viable way, that could be acceptable to Wasps, a long term rental deal can be structured that would make it a better option? If not then we have to all get behind the new stadium plan and push SISU to start making some real progress. There's no real reason now for anything to do with the new stadium to remain confidential and also no reason not to consider sites in the city.
torchomatic
Well-Known Member
Welcome to:
May your future be bleak and unsuccessful
May your future be bleak and unsuccessful
Cheshire Sky Blue
New Member
This will rankle with many on this site but today’s announcement signals the start of the future for CCFC not the end of the Club.
Things will go one of two ways; either CCFC will build their new ground or they will stay at the RICOH and eventually be part of the ownership structure. My hunch is the latter is the more likely.
The fact that today SISU have been rejected as partners does not mean that the owners of the RICOH, will not, at some stage desire to sell part of the shares, or establish viable partnerships with other companies.
SISU’s biggest issue has been that they have demonstrated time and time again that they are impossible to work with, so it is questionable as to why would anyone want to agree to deal with them?
It is fully understandable that there is massive resentment for all parties in this scandal, but I think that we have now arrived at the hiatus that is needed for CCFC to go forward and not round in circles.
My view is that today is not the day when CCFC was excluded from a deal to own their own stadium but the day when a new approach had to start.
I predict that within two years the owners of CCFC will be working in partnership with the owners of the RICOH and as such we will have our own stadium. It’s impossible to predict who the owners of CCFC will be, but I’d wager it will not be SISU.
The darkest hour is always just before the dawn.
Things will go one of two ways; either CCFC will build their new ground or they will stay at the RICOH and eventually be part of the ownership structure. My hunch is the latter is the more likely.
The fact that today SISU have been rejected as partners does not mean that the owners of the RICOH, will not, at some stage desire to sell part of the shares, or establish viable partnerships with other companies.
SISU’s biggest issue has been that they have demonstrated time and time again that they are impossible to work with, so it is questionable as to why would anyone want to agree to deal with them?
It is fully understandable that there is massive resentment for all parties in this scandal, but I think that we have now arrived at the hiatus that is needed for CCFC to go forward and not round in circles.
My view is that today is not the day when CCFC was excluded from a deal to own their own stadium but the day when a new approach had to start.
I predict that within two years the owners of CCFC will be working in partnership with the owners of the RICOH and as such we will have our own stadium. It’s impossible to predict who the owners of CCFC will be, but I’d wager it will not be SISU.
The darkest hour is always just before the dawn.
ccfcway
Well-Known Member
The CableGuy
Well-Known Member
Time's up SISU. Time to leave, leave us in peace.
mattylad
Member
Not a chance in hell of this happening. Wasps need the profits of CCFC business to pay back the loan. CCFC need to get out and get its own stadium.
Nick
Administrator
Completely going under sounds a bit too peaceful.
chiefdave
Well-Known Member
I hope you're right, I fear you're not. I can't see any reason, other than financial difficulties, for Wasps to sell a stake in the Ricoh to us. So that leaves either renting, which we keep getting told by SISU isn't viable, or a new ground which is going to add to our debt by tens of millions and then probably won't even be in the city meaning lower attendances. Finding it hard to see any positive in this.
torchomatic
Well-Known Member
SimonGilbert
Telegraph Tea Boy
All I know is that Wasps paid Higgs £2.77million for their shares, the same as they paid the council.
No idea on CCFC's bid contents. Will keep asking, although they might prefer it to come out through sources closer to the club.
Nick
Administrator
So not too far away from the cash up front offer from SISU and less than the one with payment terms? Or am I thinking of the wrong thing?
I wonder if anybody will think Wasps were stealing from the mouths of poor children etc.
CCFC PimpRail
New Member
£2.77 mil, and the condition that a stand was named after them. So will there also be an "Ann Lucas Stand"....?
Simon - have they actually handed over any money yet or refinanced the loan?
Otis
Well-Known Member
I still think building a new stadium is a madness, so where does that leave us? Somewhere between a rock and a hard place I guess.
As you say, we are in a very bad place as it is. Taking us down a route of adding to the debt by 10's of millions is surely a fruitless excerise.
If we were to build any stadium it would surely be over 10 years before we would see any good come from it and with it most likely being a distance outside of Coventry, the most likely outcome is the loss of a few more thousand City supporters to boot.
SkyBlue_Bear83
Well-Known Member
“We recognise that this announcement might raise concerns amongst the fans of Coventry City Football club.
“Wasps remain committed to building a long term and mutually productive relationship with the club and its supporters.
Paraphrased, we are happy to keep rinsing the football club for match day rent whilst talking all revenue from the stadium to support a franchise rugby club. Thank you.
“Wasps remain committed to building a long term and mutually productive relationship with the club and its supporters.
Paraphrased, we are happy to keep rinsing the football club for match day rent whilst talking all revenue from the stadium to support a franchise rugby club. Thank you.
Cheshire Sky Blue
New Member
Not sure that's the only way. Wasps can get some or all of their money back by increasing the value of the asset by running it effectively and then by selling part of that increased asset. Wasps will have paid nearly 6 million for the RICOH and agreed to take on the mortgage. It is entirely feasible that the value of the RICOH business will exceed the 6 million and could very easily double it in future. Wasps know they can get their money back. The charge for the mortgage is of little consequence if structured correctly and as long as revenue is maintained will not be an issue for potential partners.
There will never be a new stadium.
SimonGilbert
Telegraph Tea Boy
Understanding is it's £2.77million each in cash and they takeover the remainder of the £14.4million loan from the council agreed with ACL in January 2013
mattylad
Member
Wasps have just bought a stadium because they needed there own to survive...they will not be selling any of it anytime. CCFC will have to now push on and build its own.
SimonGilbert
Telegraph Tea Boy
Exactly, they own ACL.
torchomatic
Well-Known Member
Cheshire Sky Blue
New Member
Yes Wasps bought a stadium because they needed one to survive, but they also bought into a business with very big potential. If we say the ACL Cost hem 6 million, it is not unreasonable for the value of that business to exceed double that in future. The incentive for WASPS to increase value and to sell on is obvious. Think about it, an effective RICOH /ACL business with good revenue streams could easily exceed 10 million in value. Sell 50% of that and they have effectively got a stadium business for 1 million and will have shared all the risk.
That's the reason for growing the business.
Johnnythespider
Well-Known Member
Not a cat in hell's chance they will build a stadium.
SkyBlue_Bear83
Well-Known Member
People also said they'd never go to sixfields
Cheshire Sky Blue
New Member
Going to Sixfields required no investment. A new stadium will cost 30 million minimum. Its not going to happen.
mattylad
Member
Even if they managed to increase the value of ACL to 20m and sold half that is about two years wages in the rugby premiership and they are now only going to get half of the revenue stream each year to support its ongoing wages. They will not sell simple as that.
chiefdave
Well-Known Member
The big problem is there is little to no chance of getting an investment from the likes of Tesco that contributed to the Ricoh build. It would have to be funded through financing which would then mean a huge mortgage to pay. Is this going to be in anyway viable. SISU now need to start giving details and present their business case for the new stadium.
Cheshire Sky Blue
New Member
Why is the donation of 50p per ticket and the renaming so wrong?
The attitude of WASPS towards the charity (and others from what I can see) is considerably more collaborative and beneficial than the attitude of SISU towards them. (Taking the charity to court over a £29k bill they refused to pay etc etc)
Cheshire Sky Blue
New Member
Agree with that.
mustaphasbeard
New Member
SISU don't have a business case for CCFC. Unless you count using the club as a tax write off a business plan.
And as of now, if they pull the plug, what happens? Who in their right mind would be interested in taking over? There's nothing to buy.
Unless, of course, the council and wasps have played a blinder and wasps take over the club as well. Because I cant see where sisu go from here.
And as of now, if they pull the plug, what happens? Who in their right mind would be interested in taking over? There's nothing to buy.
Unless, of course, the council and wasps have played a blinder and wasps take over the club as well. Because I cant see where sisu go from here.