Brighton Sky Blue
Well-Known Member
Agreed it's just an unwanted necessity.
Wasps downward spiral... (7 Viewers)
- Thread starter CCFC54321
- Start date
Agreed it's just an unwanted necessity.
Liquid Gold
Well-Known Member
They could be dealing with a rebellion too
English rugby's top club players threaten strike action over pay cuts
English rugby's top club players threaten strike action over pay cuts
These players need to realise that unless they are playing at international level the majority of the sporting world doesn't really care about them.
I liken their sport to cricket, I think of myself as fairly knowledgeable across all sports but I couldn't name you many more than 5 county cricketers that haven't played for England, the same goes for Rugby Union, although they seem to think they deserve so much more.
I also don't really get why these clubs are spending beyond their means to chase "success". From a business point of view I understand it in football as each time you move up the pyramid the rewards are so much bigger and everyone is chasing that golden ticket to the Prem TV deal. In Rugby there's basically 11 "serious" teams, I understand the want to win the premiership or the European cup but is it really worth gambling your entire business for?
Football has been growing and will continue to grow globally for years to come. CLub level Rugby Union is a bubble, forcing growth where there is little opportunity to do so will just see it go pop.
I liken their sport to cricket, I think of myself as fairly knowledgeable across all sports but I couldn't name you many more than 5 county cricketers that haven't played for England, the same goes for Rugby Union, although they seem to think they deserve so much more.
I also don't really get why these clubs are spending beyond their means to chase "success". From a business point of view I understand it in football as each time you move up the pyramid the rewards are so much bigger and everyone is chasing that golden ticket to the Prem TV deal. In Rugby there's basically 11 "serious" teams, I understand the want to win the premiership or the European cup but is it really worth gambling your entire business for?
Football has been growing and will continue to grow globally for years to come. CLub level Rugby Union is a bubble, forcing growth where there is little opportunity to do so will just see it go pop.
jordan210
Well-Known Member
Looks like the Prem rugby has massively shot themselves in a foot. As they rejected a 30% increase in TV rights in Jan from BT and Sky got wind and offered less than current contract.
Doesn't look like anything has been agreed. But im guessing BT sport won't pay more than they are now. With the value of some sports dropping drematicly due to CV19.
Doesn't look like anything has been agreed. But im guessing BT sport won't pay more than they are now. With the value of some sports dropping drematicly due to CV19.
Peter Billing
Well-Known Member
The RFU are signalling a significant reduction in central income to clubs, the last deal signed in 2016 guaranteed £29m per year for 4 years income distribution to Premiership Rugby clubs that produce English qualifying players and England internationals. That deal is based on RFU income that just been wiped out by Covid.
That is on top of the already reduced income distribution to clubs as part of the sale of the 27% shareholding to CVC. The idea was the clubs would give up 27% of central incomes assuming CVC would at least make up for it in new commercial growth and from increased revenue from the TV deals.
From memory Wasps central income was £5m per year before CVC.
chiefdave
Well-Known Member
Had this argument with Italia when he used to spin the Wasps line that Premiership rugby had the potential to be as big a brand as Premier League football. Remember looking up the figures and in one appearance on Sky we had more viewers than every Wasps game combined.
Someone on here made the comparison to cricket recently. International cricket is popular but that does flow down to the county game, same seems to happen in rugby. I would class myself as a cricket fan but besides international players I would struggle to name more than a handful of county cricketers.
chiefdave
Well-Known Member
The sticking point in an exit strategy will be the bond. Is it known what they actually spent it on?
I know some of it went to pay back the owner and some was supposed to be ring fenced to pay the bond interest payments. Has the rest just gone on covering losses, not like they've actually built a training ground or used it on anything that is now an asset. I've always had the suspicion that they didn't actually have the cash to fund the move and the bond money was ultimately used to cover, if not the £6.5m purchase of ACL then the repayment of the council loan - the bond issue date was 7 May 2015, the council confirmed the loan had been repaid on 13 May 2015.
Thought it was optimistic when people just said they could refinance it when it was due for repayment. With the state of Premiership rugby and the economy in general thanks to the current situation being able to raise £35m plus less than 2 years from now looks increasingly difficult. If they can do it suspect it will be at a significantly higher interest rate.
chiefdave
Well-Known Member
They said they were using the bond money to pay the interest on the bond, at 6.5% a year that's £16m to start off with. Add in paying Richardson back and paying the council loan off and that's the bond money gone.
Next time round they will have years of actual trading history rather than just being able to claim that putting together a loss making Wasps and a loss making ACL was going to create a profitable company. Crowds in freefall, smaller share of central payments thanks to sale to CVC, central payments pot smaller anyway thanks to decreased value of TV contract, conference & exhibition business struggling thanks to covid-19. All while we are likely to be in the biggest recession in living memory. Doesn't sound an attractive investment to me.
Terry Gibson's perm
Well-Known Member
David O'Day
Well-Known Member
He okay these days?
I keep expecting to see "Man injured as attic full of Wasps shirts collapses" on Central news
chiefdave
Well-Known Member
So that's £3.5m on interest, £10m to Richardson, £13.4m to repay the council loan. Whats the other £8m gone on, covering losses?
On the face of it seems they've taken out what is essentially a loan for £35m and having spent it all have nothing much to show for it.
Have you included the purchase of £5.5M
Plus the bond interest is£2.5M per annum?
fernandopartridge
Well-Known Member
There are two bond payments per year though so 3 payments is 1.5 years' worth
tisza
Well-Known Member
Keep saying this. Club rugby overrates its appeal to large audiences.
Brighton Sky Blue
Well-Known Member
Were there matchdays this season where we got a bigger crowd than them? I'm fairly certain it happened at least once.
skybluelee
Well-Known Member
Their lowest league attendance was 9,500 on 7/3. Clearly this is inflated by the free tickets thrown about out like confetti but even the official figure was lower than our last league match in Birmingham , v Sunderland (just over 10k).
jordan210
Well-Known Member
Spotted this posted on the wasps forum
"Wasps Finance plc
(the "Issuer")
£35,000,000 6.50 per cent. Secured Bonds due 2022 (the "Bonds")
Update on COVID-19 and impact on the Bonds
The Group had been trading in line with expectations during the first nine months of the financial year prior to the lockdown imposed in response to the COVID-19 pandemic. The Government's public health restrictions, which have meant the closure of the Ricoh Arena to all events since 21 March, have had a significant impact on the Group's business and operations.
The Issuer today gives holders of the Bonds notice that, as a result of the significant impact on the Group from COVID-19, it now anticipates that certain financial covenants under the Bonds relating to the financial year ended 30 June 2020 will not be satisfied when Wasps Holdings Limited's audited annual consolidated financial statements for the period are published.
COVID-19 mitigating actions
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.
The Issuer will make further announcements as appropriate."
"Wasps Finance plc
(the "Issuer")
£35,000,000 6.50 per cent. Secured Bonds due 2022 (the "Bonds")
Update on COVID-19 and impact on the Bonds
The Group had been trading in line with expectations during the first nine months of the financial year prior to the lockdown imposed in response to the COVID-19 pandemic. The Government's public health restrictions, which have meant the closure of the Ricoh Arena to all events since 21 March, have had a significant impact on the Group's business and operations.
The Issuer today gives holders of the Bonds notice that, as a result of the significant impact on the Group from COVID-19, it now anticipates that certain financial covenants under the Bonds relating to the financial year ended 30 June 2020 will not be satisfied when Wasps Holdings Limited's audited annual consolidated financial statements for the period are published.
COVID-19 mitigating actions
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.
The Issuer will make further announcements as appropriate."
chiefdave
Well-Known Member
Only Wasps can make it sound like they should be praised for cancelled events.
shepardo01
Well-Known Member
Needs super spinning Nick... takes time!!..... although some things can just not be "spun" so may just fall by the wayside.... a la "Director/coke/brothel-gate"
Have the Killers been officially cancelled yet?
Not mentioned on Drunken Wasps?
fernandopartridge
Well-Known Member
What are the remedies for breaking a bond covenant?
jordan210
Well-Known Member
Nick
Administrator
Can they change the terms like last time
fernandopartridge
Well-Known Member
chiefdave
Well-Known Member
Bond holders have to agree. From what I was told when they last breached them it is usual for the bond holders to request something in return, for example an increased interest rate, they could also refuse to the change which would presumably be more serious.
According to the person I spoke to the way it was waved through last time led him to believe most of the bonds were owned by fans. He said regular investors wouldn't act that way.
LastGarrison
Well-Known Member
Yeah moved to a Saturday next year I’m July (I think).
Or am I missing something? :emoji_eyes:
The Bond Trustee should seeking assurances and establishing the affect on the security
If the major bond holders are "connected " and are a majority nothing will happen again!!