If Wasps manage to refinance their bond, I'm going to walk into one of their lenders branches and say - could you lend me a few million quid please? I have a shed in my garden worth 5 million, no money in the bank, and I can be regularly found down the strip club throwing £50 notes around.
Wasps downward spiral... (33 Viewers)
- Thread starter CCFC54321
- Start date
joemercersaces
Well-Known Member
Council, obvs
SBAndy
Well-Known Member
It’s only 3.5 months since HSBC were doing their “final due diligence”. Find it interesting that the lender hasn’t been named on this occasion - once bitten, twice shy? Or a fabrication? I’d imagine evidence would have had to be provided in order to release the notification.
Waiting for the WMCA money tree to bear fruit?
chiefdave
Well-Known Member
Yet over on their forum they're taking this statement as proof the bond is to be repaid shortly as the prospective, unnamed, lender would't have allowed the statement to be put out otherwise. They take head in the sand to a whole new level.
MalcSB
Well-Known Member
Unless it’s
a) an offer to buy the company which holds the head lease
b) a local authority helping out
tisza
Well-Known Member
Premiership clubs rack up more than £500MILLION in debt
The financial crisis facing English rugby has been laid bare after a Mail on Sunday investigation found that Premiership clubs have racked up debts of more than £500million.
oldskyblue58
CCFC Finance Director
Rugby is in a massive mess. It needs a complete reset and I am not sure how they can do it. Further down the rugby pyramid things are pretty grim too.
The article itself is inaccurate and clearly the paper gave the investigation to people who don't understand accounts.
I am sure all clubs owe HMRC and possibly more than 38m total shown. What they would owe is VAT & PAYE not deferred tax.
Deferred tax is an accounting provision for potential corporation tax on the disposal of assets above their ordinal cost in simple terms. In wasps case the increase in value on stadium and other land assets. It is not something that has to be paid to HMRC unless those assets are sold.
A summary like this ignores the assets each club so it doesn't really tell you where each club is at.
I suspect that wasps could still be the club with the biggest net debt.
Whole premiership is in danger of complete collapse. I suspect the clubs that will remain join the European leagues
The article itself is inaccurate and clearly the paper gave the investigation to people who don't understand accounts.
I am sure all clubs owe HMRC and possibly more than 38m total shown. What they would owe is VAT & PAYE not deferred tax.
Deferred tax is an accounting provision for potential corporation tax on the disposal of assets above their ordinal cost in simple terms. In wasps case the increase in value on stadium and other land assets. It is not something that has to be paid to HMRC unless those assets are sold.
A summary like this ignores the assets each club so it doesn't really tell you where each club is at.
I suspect that wasps could still be the club with the biggest net debt.
Whole premiership is in danger of complete collapse. I suspect the clubs that will remain join the European leagues
duffer
Well-Known Member
I think they're hanging an awful lot on this potential refinancing of the bond.
I'm not convinced it's going to happen, personally, but even if it does it doesn't resolve the huge structural issues at Wasps.
If anything taking on more debt at higher interest (which seems the most probable solution) will simply magnify the problems in the long run; sooner or later they're going to run out of road, imho.
I'm not convinced it's going to happen, personally, but even if it does it doesn't resolve the huge structural issues at Wasps.
If anything taking on more debt at higher interest (which seems the most probable solution) will simply magnify the problems in the long run; sooner or later they're going to run out of road, imho.
Or a complete sell out to the media companies
Edit:- which in reality is pretty worthless to them with a closed league without progression.
I’d just like to understand the business plan they have dropped in front of the ‘potential lenders’ of this loan to pay the bond holders.
what ever the plan has been over the last 8 years certainly hasn’t worked so what’s going to change now that didn’t work before?
WMCA?
Grendel
Well-Known Member
That would still mean £22m funding needed
Gynnsthetonic
Well-Known Member
There's no evidence to say Wasp are getting funding though, it's talk to stall the bondholders. Of course Wasp are going to say we're hopeful of a refinancing package from an unnamed lender. It's like me saying I'm hopeful of a Dubai based consortium taking over CCFC.
chiefdave
Well-Known Member
The securing funding part is just from the Wasps update isn't it so nothing we didn't already know and as has been discussed we've been here before months ago with a named lender.
Unless someone is gifting them the cash somehow they are going to have to pay it off and paying off the capital on top of the interest payments they were previously paying. The question remains how are they going to afford those repayments?
Unless someone is gifting them the cash somehow they are going to have to pay it off and paying off the capital on top of the interest payments they were previously paying. The question remains how are they going to afford those repayments?
Just whispers,but potentially if it were local/regional money then timing of announcement is sensitive to political events/consideration or possibly beneficial timing of Wasps manoeuvres.
If a Grant to replace lending it becomes more viable on an LTV basis also reduces outflows
They don't know how to handle it, it just doesn't compute.
To them the game is all middle-class back-slapping, dipping cocks in beer and eating artisan pork pies out of the back of Land Rovers. They really struggle when any sort of criticism is levelled at them, especially from football fans.
Gynnsthetonic
Well-Known Member
Meanwhile, 4 local Worcestershire MPs have demanded Worcester to placed onto Administration.
Nick
Administrator
While ours try and justify them not paying tax bills because "Amazon".
Gynnsthetonic
Well-Known Member
Just stalling tactics from Wasp then as the bondholders revolt gathers pace. Nobody in there right mind will lend to them (hopefully)
Razzle Dazzle Dean Gordon
Well-Known Member
Just stalling tactics from Wasp then as the bondholders revolt gathers pace. Nobody in there right mind will lend to them (hopefully)
I think the offer of finance is genuine but whether it does anything other than kick this enormous can further down the road seems highly unlikely.
Gynnsthetonic
Well-Known Member
I think it's a stalling tactic myself, if they did get finance it's more debt to pay off debt, it doesn't make sense to me but I'm sure we'll soon find out one way or other
Philosoraptor
Well-Known Member
I think offers of finance isn't going to be the problem for the London rugby club to achieve. The problem comes when the lender does their due diligence and the warning lights start going off.
Frostie
Well-Known Member
Nah, the 2 Harry Styles gigs will probably raise the £35m if you ask a Wasps fan