Could this be good news for us to return to the Ricoh? (1 Viewer)

Taking bets on if the telegraph mention it

The company behind Premiership rugby side Wasps and the Ricoh Arena in Coventry is to not meet certain financial covenants under its £35m secured bonds due to the Covifd-19 pandemic, it has been revealed.

Wasps Finance plc, in an update to the London Stock Exchange, said it now anticipates that they will not be satisfied when Wasps Holdings Ltd's audited annual financial results are published for 30 June 2020.

The company said it had been trading in line with expectations during the first nine months of the financial year prior to the lockdown.

The health measures meant the closure of the Ricoh Arena to all events since 21 March, which "had a significant impact on the group's business and operations".

The bonds, set at 6.50 per cent, are due in 2022.

The company added that the group is "reviewing its business strategy for a post-Covid environment and for the long term".

A statement said: "The group's management had prepared for the possibility of lockdown and therefore was able to implement its closedown plan effectively and efficiently.

"Alongside the government support initiatives, including the CJRS and the cash savings as a result of the one year exemption from business rates, together with the deferral of VAT and PAYE payments, management has taken a number of actions to reduce costs, preserve cash and maintain liquidity.

"The board of directors of the issuer, Wasps Holdings Limited and Arena Coventry Limited are actively engaging with relevant stakeholders and pursuing further initiatives to support the group during this period and through to the reopening of the Ricoh Arena.

"As part of its reopening plans, the group is reviewing its business strategy for a post-Covid environment and for the long term.

"The health and well-being of the group's staff and users of the Ricoh Arena remain of paramount importance.

"Prior to lockdown, the group had been adhering to government guidelines and implementing social distancing measures.

"During the lockdown, it has continued to follow the latest official guidance at the Ricoh Arena and elsewhere across its business.

"The group has a comprehensive reopening plan in place, with detailed operating procedures to ensure team member and visitor health and wellbeing.

"It has already held a number of positive conversations with customers already impacted by the government restrictions and successfully rescheduled a number of events to 2021.

"This is in anticipation of the public health restrictions being relaxed leading to the gradual reopening of the Ricoh Arena."

skybluebeduff said:

Wasps to miss covenants over £35m bonds

Surely this is good news for us?

If someone could copy and paste the article on this thread, that would be much appreciated, my phone is not having it.

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Rock and hard place for me - 12 more months of behind closed doors stuff and they’re gone.

problem is the likelyhood is so will we

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WASPS TO MISS COVENANTS OVER £35M BONDS

3 Jul 2020 Midlands Business Jon Robinson

[https://www]
The company behind Premiership rugby side Wasps and the Ricoh Arena in Coventry is to not meet certain financial covenants under its £35m secured bonds due to the Covifd-19 pandemic, it has been revealed.
Wasps Finance plc, in an update to the London Stock Exchange, said it now anticipates that they will not be satisfied when Wasps Holdings Ltd's audited annual financial results are published for 30 June 2020.
The company said it had been trading in line with expectations during the first nine months of the financial year prior to the lockdown.
The health measures meant the closure of the Ricoh Arena to all events since 21 March, which "had a significant impact on the group's business and operations".
The bonds, set at 6.50 per cent, are due in 2022.
The company added that the group is "reviewing its business strategy for a post-Covid environment and for the long term".
A statement said: "The group's management had prepared for the possibility of lockdown and therefore was able to implement its closedown plan effectively and efficiently.
"Alongside the government support initiatives, including the CJRS and the cash savings as a result of the one year exemption from business rates, together with the deferral of VAT and PAYE payments, management has taken a number of actions to reduce costs, preserve cash and maintain liquidity.
"The board of directors of the issuer, Wasps Holdings Limited and Arena Coventry Limited are actively engaging with relevant stakeholders and pursuing further initiatives to support the group during this period and through to the reopening of the Ricoh Arena.
"As part of its reopening plans, the group is reviewing its business strategy for a post-Covid environment and for the long term.
"The health and well-being of the group's staff and users of the Ricoh Arena remain of paramount importance.
"Prior to lockdown, the group had been adhering to government guidelines and implementing social distancing measures.
"During the lockdown, it has continued to follow the latest official guidance at the Ricoh Arena and elsewhere across its business.
"The group has a comprehensive reopening plan in place, with detailed operating procedures to ensure team member and visitor health and wellbeing.
"It has already held a number of positive conversations with customers already impacted by the government restrictions and successfully rescheduled a number of events to 2021.
"This is in anticipation of the public health restrictions being relaxed leading to the gradual reopening of the Ricoh Arena."



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Hiding behind C19. It’s undoubtedly had a huge and adverse impact but it just feels they are throwing every issue their flawed business model has into the same pot. Ultimately they have a stadium they can’t afford because Rugby below International is just not that lucrative

Nick said:

Taking bets on if the telegraph mention it

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Wasps announce positivity. My bet for headline

Covid is a convenient excuse for a company already struggling financially pre pandemic

Nick said:

Taking bets on if the telegraph mention it

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how wasps managed lock down - you'll be amazed!

I was hoping they'd have packed up and gone by now... I guess we all feel the same way.

Nick said:

Taking bets on if the telegraph mention it

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5 ways wasps are surviving lockdown - and you won’t believe number 5

matesx said:

I was hoping they'd have packed up and gone by now... I guess we all feel the same way.

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Alot do, I'd be interested to know now of the 11-13000 that attend home matches, how many are from Coventry... Less than 20% anybody, can't be many

matesx said:

I was hoping they'd have packed up and gone by now... I guess we all feel the same way.

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Yep but not going to happen so I guess the best we can hope for is that they are financially struggling so more likely to cut a decent deal. I suppose for the club it’s about weighing up other options should this not be an option again I.e. could we got back to SA or not as an alternative?

CET : WASPS TO PUT 35 MILLION BACK INTO LOCAL COMMUNITY POST COVID

Evo1883 said:

Alot do, I'd be interested to know now of the 11-13000 that attend home matches, how many are from Coventry... Less than 20% anybody, can't be many

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11-13k for home matches? I don't think they managed more than 6-7k this season!

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pastythegreat said:

11-13k for home matches? I don't think they managed more than 6-7k this season!

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In the league? Shocking... I know they get alot more for European matches in the past.. Either way Coventry have already shunned them by the looks of it

Evo1883 said:

In the league? Shocking... I know they get alot more for European matches in the past.. Either way Coventry have already shunned them by the looks of it

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Yeah. They had figures of 12k upwards, but just look at photos! They're clearly counting all free tickets taken rather than actual people through the turnstiles. A lot like we had 28k at the Accrington game a few years back

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HuckerbyDublinWhelan said:

5 ways wasps are surviving lockdown - and you won’t believe number 5

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5. Flags

A bond paying 6.5% interest pre-Covid19 looked like financial suicide before the lockdown. Post lockdown it looks like an episode from Monty Python.
By 2022, unless something dramatic happens the business model Wasps has employed will unravel.

Colin Steins Smile said:

A bond paying 6.5% interest pre-Covid19 looked like financial suicide before the lockdown. Post lockdown it looks like an episode from Monty Python.
By 2022, unless something dramatic happens the business model Wasps has employed will unravel.

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Imagine if that unravelling is the (unplanned) grand finale of the "City of culture" year (now running mid 21 to mid 22 due to C19!)
Just imagine!....
Although I don't think I can wait until 2022....
Hope it "unravels" much sooner...

A wasps fan is seriously suggesting that are congratulated

All evidence points to a company in need of a commercially beneficial agreement for a major sporting club to move back in. Seems like a no brainer for them

Sky Blue Pete said:

All evidence points to a company in need of a commercially beneficial agreement for a major sporting club to move back in. Seems like a no brainer for them

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Depends what their (not so) secret overlords at the Council say!.......

Sky Blue Pete said:

All evidence points to a company in need of a commercially beneficial agreement for a major sporting club to move back in. Seems like a no brainer for them

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Each day that goes by. It feels like the odds are turning in our favour. Im sure the big bods at our club have a strategy.

jordan210 said:

Wasps announce positivity. My bet for headline

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Council bail out Wasps to secure the future of local team :wideyed:

twistandshout said:

Council bail out Wasps to secure the future of local team :wideyed:

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Council tax rises due to Covid*

*and to bail wasps out

If I were the club I would be looking at a temporary deal at The Butts to get us back in the city and see us through the start of next season before fans are allowed back.

KG7 said:

If I were the club I would be looking at a temporary deal at The Butts to get us back in the city and see us through the start of next season before fans are allowed back.

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Butts is a no! Has been for over a year. Doesn't meet guidelines.

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KG7 said:

If I were the club I would be looking at a temporary deal at The Butts to get us back in the city and see us through the start of next season before fans are allowed back.

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Pitch not allowed in EFL....

I nearly spat my tea out at this line:

The company said it had been trading in line with expectations during the first nine months of the financial year prior to the lockdown.

.....somebody warn poor Tom!
Could be close to his P45 from the Waspograph!

shepardo01 said:

.....somebody warn poor Tom!
Could be close to his P45 from the Waspograph!

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Like I said he was pretty balanced. If I was on twitter I’d say good on you young man!
What was his name on here?

shepardo01 said:

.....somebody warn poor Tom!
Could be close to his P45 from the Waspograph!

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Interesting #PUSB hashtag used. In itself it isn't a football related story.