Wasps going into admin & the impact on CCFC (141 Viewers)

[CCFC54321]

State of this

What a drama queen

 

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[Sky Blue Harry H]

If anyone's sad enough to want to watch the council meeting... believe its at 2. Pre drink at 1 in preparation

Home - Coventry City Council Webcasting

Home - Coventry City Council Webcasting

Coventry.public-I.tv

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Think I'll wait for the summary, plus I think my other half has got me booked for hedge trimming duties ☹

 

[Liquid Gold]

You swallowed a dictionary mate?

Somone's never had the pleasure of MMM

 

[Liquid Gold]

The club is CANCELLED

 

[ccfcrob]

Think I'll wait for the summary, plus I think my other half has got me booked for hedge trimming duties ☹

Lucky Boy

 

[hill83]

The club is CANCELLED

 

[AOM]

 

[duffer]

The most likely solution is that following administration the stadium/long lease is sold* and bondholders get Xp in the pound (as I can’t see it selling for more than £35m and that’s before any professional fees). At that point the stadium will be free from any debts/liabilities…unless new owner has borrowed against it

*there might be a period of trading I guess and that’s what CCC might have to help fund. If so, they’d receive repayment of this before bondholders receive their distribution

I'm not sure how this would work. There's a strict order of creditors, and even HMRC sit behind the bondholders. There's no obvious way that I can see of CCC jumping to the front if they loan ACL funds now or when in admin. If any subsequent deal unspooled it'd be a risk to council funds, surely?

 

[Saddlebrains]

Just saw a bloke walking his dog round Longford Park in full Wasps regalia

Was like a death march for the bloke

I giggled

 

[Otis]

Only tonight's and Saturday's games cancelled so far???????? Still down to be playing on 30th October - be an interesting game with no players

If it's on, let's hope they lose.

 

[SkyBlueSam01]

The club is CANCELLED

Masterfully worded... Notice how there isn't a single word in there to suggest we are saddened by the news.

Could easily just be thinking about about how superbly the situation has ended up for wasps players, staff and supporters

 

[Esoterica]

I like how it doesn't say what the thoughts are though. I imagine it is something like:

 

[Kneeza]

Fair enough Streets just a prick then. Did they turn pro recently? Sure they were semi pro not long back

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It's a few years now since they returned to fully-pro status (having had a period as such before, before going semi-pro).
The difference between CRFC and Wasps though, is that they do it realistically, within budgetary constraints as far as possible, and the players also have other 'jobs' within the club, such as community development roles at schools and so on.

 

[jordan210]

Whats odd is wasps twitter replied to it. If I was the admin I would have f offed if not being paid

 

[Nick]

So if it does work out as £175k a week lost, how were they ever going to be able to pay the bonds back? They would have needed a HUGE turnaround.

 

[jordan210]

So if it does work out as £175k a week lost, how were they ever going to be able to pay the bonds back? They would have needed a HUGE turnaround.

The bond feels like some sort of pyramid scheme. Use the most bond money to pay the lease. Use rest to cover losses. As doesn't look like wasps put much of their own money in.

 

[CCFCSteve]

I'm not sure how this would work. There's a strict order of creditors, and even HMRC sit behind the bondholders. There's no obvious way that I can see of CCC jumping to the front if they loan ACL funds now or when in admin. If any subsequent deal unspooled it'd be a risk to council funds, surely?

You’re right if CCC provided any funding now they’re unlikely to get it back. For any funding provided post administration to help trading they would as it would be a cost of the administration which would sit above creditors. I’d imagine the bondholders trustee/representative would be brought in the loop on this. Ultimately its in their best interests as it would keep the stadium operational whilst a buyers found, hopefully achieving a better price…rather than a rushed fire sale price which could happen if it closed

It might be that there’s no funding necessary but I was just saying if CCC/someone needs to fund trading while a sale process is completed, they’d be repaid the cash. Hopefully this should mean the doors stay open

 

[robbiethemole]

Get your questions in to Cllr Gary Ridley on twitter ...

Are Lucas, Duggins and all the others involved in this shitshow, going to publicly apologise for all the crap that’s happened since Wasps were given the freedom of the City???

 

[Liquid Gold]

Whats odd is wasps twitter replied to it. If I was the admin I would have f offed if not being paid

World class trolling there by going full in on the rugby family angle

 

[Sky Blue Pete]

Are Lucas, Duggins and all the others involved in this shitshow, going to publicly apologise for all the crap that’s happened since Wasps were given the freedom of the City???

No best decision for the right reasons at the time will be the answer

 

[Nick]

No best decision for the right reasons at the time will be the answer

Would love to know what due diligence was done other than "not sisu"

 

[skybluetony176]

Does that figure take into account the secondary spend? A wholistic assessment of ccfc occupancy would be more accurate, rather than a single cost centre.

Also the footfall to the Arena’s other tenants. That surely has to be measured as value to the arena. I’m sure the casino for instance is happy CCFC came back.

 

[Nick]

Reeves also needs some questions....

 

[Grendel]

Does that figure take into account the secondary spend? A wholistic assessment of ccfc occupancy would be more accurate, rather than a single cost centre.

The basic point is that the group accounted revenue is around £25m - you would assume a buyer would intend to maximise revenue and target of £30m is not unreasonable

Our direct contribution really is rent and also whatever the split on F and B. It is going to be small

Wasps themselves show average F and B is at £6 per head - cannot see ours as much tbh certainly no more.

So unless someone is buying the club as well they will not really be buying it because we are they - just will see us as an added assured revenue

 

[oldfiver]

Would love to know what due diligence was done other than "not sisu"

I suspect very similar to when assessing CCFC to see if it could afford the initial rent at the Ricoh

 

[duffer]

Would love to know what due diligence was done other than "not sisu"

Absolutely...

"So, err, no other questions from us. Is there anything you'd like to ask?".

 

[Nick]

Wasps Director blames RFU? ha

Wasps legend Dallaglio: We must act now to save English rugby

Former England and Wasps captain Lawrence Dallaglio has warned English rugby faces further drastic upheaval unless the RFU and Premiership Rugby come together to resolve the game’s financial plight.

www.standard.co.uk

 

[Skyblueweeman]

Somone's never had the pleasure of MMM

I have to be fair but just don't recall his apparent eloquence.

 

[SlowerThanPlatt]

Who's this fucking fanny?

Pretty much what I expected from someone who asked Biamou for a selfie

 

[Paul Anthony]

Wasps Director blames RFU? ha

Wasps legend Dallaglio: We must act now to save English rugby

Former England and Wasps captain Lawrence Dallaglio has warned English rugby faces further drastic upheaval unless the RFU and Premiership Rugby come together to resolve the game’s financial plight.

www.standard.co.uk

The lack of accountability is quite amazing. Seems so far they've blamed just about everyone else before themselves.

 

[Nick]

The lack of accountability is quite amazing. Seems so far they've blamed just about everyone else before themselves.

This is the same guy

'Financially Wasps are in great shape' - Lawrence Dallaglio

England World Cup winner believes jealously maybe behind rumours

www.coventrytelegraph.net

 

[Nick]

Wasps boss Nick Eastwood responds to latest accounts

Total owed to owner Derek Richardson has hit £18.6million

www.coventrytelegraph.net

"As long as though they are getting their interest paid, which they are, and they have proper security for the bond which is in the context of this place and also the P shares, as they call it, they've got more than enough cover.

"We've not had virtually no contact from bond holders because as long as they get their interest paid and let their money back at the end of the bond, what the profits are, are not necessarily of primary concern for them."

 

[TomRad85]

Who's this fucking fanny?

There's a few on Facebook and Twitter by the looks giving the faux sadness over the redundancies. It's not ideal for them obviously but people get made redundant every day, people who don't work for parasites and I absolutely will not have my enjoyment over Wasps going pop being spoiled by a few social media suck ups.

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[SkyBlue_Bear83]

Wasps to become richest rugby club in the world, says chief

Wasps announce plans for a £35m bond and say they are on course to become the richest rugby club in the world.

www.bbc.co.uk

 

[Sbarcher]

Think I'll wait for the summary, plus I think my other half has got me booked for hedge trimming duties ☹

Her lady garden? Never see Monty Don giving tips on this subject.