Nick
Administrator
They did
They didWasps didn’t pay £6.5m
If they did they would still exist now!
That’s like saying you can buy a house for £10k
Yes you’ll have £200k mortgage, but you’ve bought a house with £10k
Wasps didn’t pay £6.5m
If they did they would still exist now!
it isn’t - the shareholder value was £5.6 and the loan transfer was after purchase. The lease extension allowed a valuation of £60m - the borrowing needed wasn’t £35m it was £14m - the loan wasn’t related to the debt
They did
They used the loan to clear the debt
There was no debt
ACL was £20m in debt to the council.
If you recall the council bailed out ACL in 2013 when it couldn’t repay its debt to Yorkshire Bank.
ACl was in no debt - there was a £14m charge against it to the council - the shareholder purchase reflected that there was zero obligation for the purchaser of the shares to then buy out the mortgage. Sorry but you are talking nonsense
They paid the council £14m but it was not part of the purchase, I'm not sure how you don't understand this.So Wasps gave the council £14m out of the goodness of its heart?
Wasps RFC pay off £13.4million Ricoh Arena council loan in full - 20 years early
Coventry City Council confirm full payment, plus interest, arrived in the authority's bank account this morningwww.coventrytelegraph.net
No they decided on a different funding source to finance a charge against a business they’d purchased - they wouldn’t have even had an option to refinance without the lease extension and they had no obligation to do soSo Wasps gave the council £14m out of the goodness of its heart?
Wasps RFC pay off £13.4million Ricoh Arena council loan in full - 20 years early
Coventry City Council confirm full payment, plus interest, arrived in the authority's bank account this morningwww.coventrytelegraph.net
When taking on a public body like the council, the key is to get the public on side.
Sisu however decided to piss off the public first, and then try and take on the council.
How that hedge fund stays in business is beyond me. They clearly have no idea how basic human psychology works.
They paid the council £14m but it was not part of the purchase, I'm not sure how you don't understand this.
For £5.5m they obtained the shares in ACL from CCC and AEHT and paid £1m to CCC to extend the lease to 250 years. They only paid that debt after the purchase. It was not part of the purchase price.
Sent from my Pixel 7 using Tapatalk
At the risk of stepping back in time, certain council members let their support for the club colour their approach too. Instead of seeing it in child business terms, Mutton decided SISU needed to invest in the team before they could buy the ground etc, and there was no flexibility on the local authority side for seeing a deal other than what was best for them in the immediate term - there was no bigger picture.The key was to get the council onside. You’re pushing at an open door FFS. There won’t be an organisation in existence bar CCFC itself with a higher proportion of CCFC fans in it. A successful club reflects well on the city. You have to really fuck up to get them offside.
Fisher was a tool of communication.The key was to get the council onside. You’re pushing at an open door FFS. There won’t be an organisation in existence bar CCFC itself with a higher proportion of CCFC fans in it. A successful club reflects well on the city. You have to really fuck up to get them offside.
Joy went to a bunch of swivel eyed loons like Reid and Sinclaire and played poundshop Game of Thrones.
Ultimately the right move IMO was to threaten the rent strike, and get the fans on board and apply pressure for a new deal. Clearly we never had the cash for the stadium itself as the lack of bid at the end showed, but we could have played the public sympathy card much better. Not doing it at our lowest ebb on the pitch didn’t help either.
Just poor strategy all round. No idea if it works in the debt business, probably, but I wouldn’t put Seppala anywhere near a role that required bringing people on board. Jesus look at King who has basically come in, spent fuck all, and hammered the prices up and gets a song and masks. In a large part because we can actually see him and he can present a half decent persona to the media (even if that persona is weirdly out of touch local businessman crossed with Alan Partridge)
In my opinion he became the fly in the ointment.Fisher was a tool of communication.
At the risk of stepping back in time, certain council members let their support for the club colour their approach too. Instead of seeing it in child business terms, Mutton decided SISU needed to invest in the team before they could buy the ground etc, and there was no flexibility on the local authority side for seeing a deal other than what was best for them in the immediate term - there was no bigger picture.
And let's face it, Mutton and Seppala were never likely to get on to build a relationship!
Anyway, we've been there and done that.
No they decided on a different funding source to finance a charge against a business they’d purchased - they wouldn’t have even had an option to refinance without the lease extension and they had no obligation to do so
They paid the council £14m but it was not part of the purchase, I'm not sure how you don't understand this.
For £5.5m they obtained the shares in ACL from CCC and AEHT and paid £1m to CCC to extend the lease to 250 years. They only paid that debt after the purchase. It was not part of the purchase price.
Sent from my Pixel 7 using Tapatalk
You said there was no debt, and said I was talking nonsense for suggesting there was.
Yet there blatantly was debt
The debt was part of the purchase.
The deal was Wasps pay the £6m, and then repay to the council the £14m loan over the agreed time period.
The loan was a cost of purchase that was reflected in the shareholder value the same as any other payments - there was zero requirement to purchase the loan and the owners of wasps holdings could have paid the mortgage to the council - mutton at the time said the interest on the mortgage would provide tax payers with a profit
it wasn’t as there couldn’t be a legal requirement to do that
But they still would’ve been paying it, just over a longer period.
And it was still a debt that existed
Right do to clarify how you think things happened:
2013 - CCC loan ACL £14m to pay off Yorkshire Bank. Loan to be repaid to CCC over 50 years.
2014 - Wasps buy ACL, but have no responsibility for ACL debt. However Wasps decide to take on that debt anyway.
Why on Earth would Wasps take on ACL debt if, as you say, they didn’t have to?
Sorry but if you buy a business as a going concern, the debt still exists
Did Wasps buy ACL unencumbered?
Why did SISU insist that they were only interested in buying ACL if it was unencumbered?
The answer is no to the first question and because ACL was in debt to the second.
No. It was not. The assets had transferred by the time the loan was discharged. The bond issue was May 2015.The debt was part of the purchase.
The deal was Wasps pay the £6m, and then repay to the council the £14m loan over the agreed time period.
No. It was not. The assets had transferred by the time the loan was discharged. The bond issue was May 2015.
Sent from my Pixel 7 using Tapatalk
So why repay it?
They paid the £13.4 back after the bond.No. It was not. The assets had transferred by the time the loan was discharged. The bond issue was May 2015.
Sent from my Pixel 7 using Tapatalk
Because dodgy Derek wanted his money back and saw this a way to get £10 million in one day
The shareholder value was £5.6m - it rose to £64m when the lease was purchased - what does that tell you?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?