Wasps report £3.8m losses and rising £43m debt

[jgriffin]

Serious trouble for Wasps?

https://coventryobserver.co.uk/news/exc ... -43m-debt/

Unless Richardson sells on to someone who guarantees dividends and covers the losses.....perhaps someone in HongKong, Qatar, China or the shadow group behind Quins?

[tigercaspian]

I would say 'Yes' . They have meagre cash with which to service the debts so it looks like a hand to mouth existence for next year or two, even if they get a decent pile of dosh for the naming rights sale.
Unless some 'inward investment' (aka Sugar Daddy) can be found.......

[TomWeston]

Serious trouble for Wasps?

https://coventryobserver.co.uk/news/exc ... -43m-debt/

Unless Richardson sells on to someone who guarantees dividends and covers the losses.....perhaps someone in HongKong, Qatar, China or the shadow group behind Quins?

Despite the current trading performance there is value in the Wasps franchise, coupled as it is with the casino, hotel etc. The legal cases are the biggest worry.

If the trading conditions worsen and the bond holders lose out after financing just about the whole scheme at it's set-up, it seems to me that Richardson would be well placed to buy them out at distressed values. I know he has his own loan to the consortium which would be at risk too but it might present him with an opportunity to reduce the overall debt and retain the whole shebang.

Interesting times.

[mol2]

Are there no penalties for defaulting on the debt?
I may be mistaken but I think the league has clauses to stop sides running up huge debts only to walk away from them. Of course it may well be that the debt is not held by the team directly although that should show in the books.

[Iain]

Are there no penalties for defaulting on the debt?
I may be mistaken but I think the league has clauses to stop sides running up huge debts only to walk away from them. Of course it may well be that the debt is not held by the team directly although that should show in the books.

I believe they can be docked points for this. Don't quote me on it but I'm sure there's a precedent.

[strawclearer]

Are there no penalties for defaulting on the debt?
I may be mistaken but I think the league has clauses to stop sides running up huge debts only to walk away from them. Of course it may well be that the debt is not held by the team directly although that should show in the books.

I believe they can be docked points for this. Don't quote me on it but I'm sure there's a precedent.

#NotMyPrecedent...oh, sorry...got confused!

[h's dad]

Are there no penalties for defaulting on the debt?
I may be mistaken but I think the league has clauses to stop sides running up huge debts only to walk away from them. Of course it may well be that the debt is not held by the team directly although that should show in the books.

I believe they can be docked points for this. Don't quote me on it but I'm sure there's a precedent.

The same way they do for salary cap breaches?

[Tiger93]

http://www.londonstockexchange.com/exch ... 74846.html

http://www.londonstockexchange.com/exch ... 74848.html

Someone care to shed some light?

[RagingBull]

No thanks, we don't want or need 1000's of people coming for free. It generally attracts the wrong sort of people. The kind of people that come for a booze up and have a get together.

Wasps need to market thinks at a higher intensity than us because we have the high numbers of support but Wasps don't. They are still giving loads of free tickets away by the way.

Oh and they may be doing things bigger with marketing but they are running at a loss and a big one too. Tigers however, is run properly. I would take less success and a sustainable club than a loss making club who haven't won anything in years and a future which relies on a sugar daddy even if starts to bring consistent success. I will support Tigers forever wherever they finish and no matter how many trophies are or are not won. Wasps on the other hand may no longer have a club in 10, 20 or 30 years time. They have already shafted their fans by moving them to Coventry.

I will continue supporting Tigers because they are a fantastic, well run club. If trophies start to become few and far between then it makes no difference!

Can you elaborate on Tigers is a fantastic, well run club?

I think most can clearly see Bath, Wasps and Saracens off field plans are light years ahead.

I think Tigers let tradition block progress. Surely you can see Wasps are starting to dominate the Midlands?

How so?

[strawclearer]

No thanks, we don't want or need 1000's of people coming for free. It generally attracts the wrong sort of people. The kind of people that come for a booze up and have a get together.

Wasps need to market thinks at a higher intensity than us because we have the high numbers of support but Wasps don't. They are still giving loads of free tickets away by the way.

Oh and they may be doing things bigger with marketing but they are running at a loss and a big one too. Tigers however, is run properly. I would take less success and a sustainable club than a loss making club who haven't won anything in years and a future which relies on a sugar daddy even if starts to bring consistent success. I will support Tigers forever wherever they finish and no matter how many trophies are or are not won. Wasps on the other hand may no longer have a club in 10, 20 or 30 years time. They have already shafted their fans by moving them to Coventry.

I will continue supporting Tigers because they are a fantastic, well run club. If trophies start to become few and far between then it makes no difference!

Can you elaborate on Tigers is a fantastic, well run club?

I think most can clearly see Bath, Wasps and Saracens off field plans are light years ahead.

I think Tigers let tradition block progress. Surely you can see Wasps are starting to dominate the Midlands?

How so?

RB - that post was over a year ago.....I think?

[RagingBull]

I see

[strawclearer]

I see

[wormus]

http://www.londonstockexchange.com/exch ... 74846.html

http://www.londonstockexchange.com/exch ... 74848.html

Someone care to shed some light?

Just an article on Wasps mis-directing "Donations" to read income. 6% interest & £2.1M interest Wow!
How long before their bubble bursts as they need Shareholders & more bonds to keep the ship afloat.
http://www.telegraph.co.uk/business/201 ... ularities/

[Tiger93]

Smacks of foul play to me.

[Tiglon]

Oh dear, we're back on this again. Looks like their finances are making good progress towards sustainability, despite an accounting error.

Maybe it's time to stop bleating on about how Wasps, Saracens and anyone else who currently has a better team than Tigers is going to go bust.