Wasps in the mire - now in administration

[PIEANDAPINT]

[Hot_Charlie]

Wasps were heavily in debt prior to moving to Coventry, the move made it worse, it could be said the can was kicked down the road & significantly more debt accrued.

Might be a good time for Tigers to say something about our finances, if the last few weeks in this country have shown anything, the lack of effective communication is as bad as poor financial management.

Worth noting that the club's 2021 accounts were published almost a year ago, and are available for all to view - it not like the club has been trying to hid anything (as others have). This year's accounts might be out very soon anyway and it probably wouldn't be appropriate to comment until they are released. More importantly they provide a strategic narrative, including the comments last year regarding mitigations in the case of a forecast of "significant impact of cash flow".

I'd be thinking the club has been considering mitigations for this occurrence ever since the fixture list came out and it was know both Worcester and Wasps were struggling.

In other news, looking at Companies House, I see that the Mary Ford has resigned as company secretary after 23 years. Fintan Kennedy replaces her.

[nasher]

Please advise: wasps holdings are in administration, ACL own the ground - are they owned by wasps holdings, therefore the administrators effectively own the ground and May dispose as they wish to satisfy the creditors or is the ground owned by others and creditors except hmrc will get nothing.

[Tigerbeat]

Please advise: wasps holdings are in administration, ACL own the ground - are they owned by wasps holdings, therefore the administrators effectively own the ground and May dispose as they wish to satisfy the creditors or is the ground owned by others and creditors except hmrc will get nothing.

Statement regarding the future of CBS Arena - Arena Coventry Limited (ACL)

The company which owns the Coventry Building Society Arena is in negotiations with potential investors to take over the running of the complex and is hoping to conclude a deal in the next two weeks.

Arena Coventry Limited (ACL) is not included in the administration of Wasps Holdings Limited which was announced today, and has filed a notice of intention to appoint administrators, a move which will give two weeks to be able to secure new owners for the venue.

A spokesperson for ACL said: “The arena is a profitable standalone business with huge potential and therefore is attracting strong interest from a number of parties. We have filed a notice of intention to appoint administrators and we will be aiming to use this period to complete a deal with a venue operator.

“It would also allow the arena to continue to generate funds through the exhibition, conference and hotel business and would also mean the Rugby League World Cup game and Coventry City fixtures will go ahead as planned, which, we believe, is in everyone’s interest.

“The arena is very much a key economic driver for the region and we are hopeful that we can conclude a deal to ensure its future. Time is exceedingly tight and talks are continuing around the clock so we can reach a suitable deal.”

[wormus]

With the demise of the invading Wasps, does this mean that Leicester Tigers now increase their catchment area to the Warwickshire boundaries and other areas that Wasps pinched off us on their invasion?
I realise that Worcester too had the Birmingham south west area of Warwickshire but let us hope they can be jump started again.

[Old Hob]

Rescue packages for the clubs may be harder to get than originally thought as PRL will sell the P share and distribute the money to creditors. Terminum Capital have walked away from the deal saying "Wasps treated worse than Saracens, who cheated but who kept their P share and all its financial benefits.
Martyn Phillips, the PRL chairman, said it could not endorse a situation where clubs were able to shed debt in administration but retain full access to central funding, arguing it would create inequality and a bad precedent.

[Hot_Charlie]

Please advise: wasps holdings are in administration, ACL own the ground - are they owned by wasps holdings, therefore the administrators effectively own the ground and May dispose as they wish to satisfy the creditors or is the ground owned by others and creditors except hmrc will get nothing.

ACL is a separate company but with Wasps' Derek Richardson at its head (to muddy the waters he was appointed as a director in August 2022). I note in 2018 PwC resigned from ACL too over the Wasps Holdings issues.

And ACL only own the lease of the ground IIRC...

[GB72]

I do think that it time we had some comment from the PRL. Being realistic, once the current playing staff have found new clubs, Worcester and Wasps are not going to have clubs that are going to take the Championship by storm and part of me thinks that it is a pipe dream to think that either are going to end up playing rugby at the higher levels again (or at least in the near future) and so we need to start seeing some decisions. Are the P shares able to be taken back? If so, are their going to be new additions to the league or will there be a reduced number of clubs? If there are going to be new additions, will it be by promotion or invite? Will they have to buy P shares as part of any promotion? If we are reducing the number of clubs, do the remaining clubs get extra shares of the revenue? All sorts of questions around that seem to be being bypassed with talk of ways to save Wasps and Worcester that are, realiistically, not going to happen and some sort of framework for going forward needs to be put on the table.

[tigerburnie]

Rescue packages for the clubs may be harder to get than originally thought as PRL will sell the P share and distribute the money to creditors. Terminum Capital have walked away from the deal saying "Wasps treated worse than Saracens, who cheated but who kept their P share and all its financial benefits.
Martyn Phillips, the PRL chairman, said it could not endorse a situation where clubs were able to shed debt in administration but retain full access to central funding, arguing it would create inequality and a bad precedent.

P shares can only be held by a rugby club, PRL can only sell them to a club promoted to the premiership or amongst the member clubs already in the league.

[thebearisstilldeano]

Anyone seen anything anywhere about the re calculation of the table?

Am I missing something the powers that be are waiting for before they strike Wasps from the record as happened to Worcester?

[nasher]

Thank you Old hob for the info. My understanding now is that ACL( owned by some if not all of wasps directors.) own the lease to the stadium not Wasps holdings , therefore there is no value for the sacked employees or creditors in the stadium. Wasps own the £35 million bond liability so wasps holdings will go under with a very big splash and the creditors will get nothing.
It appears to be scandalous mismanagement by the directors.

[Hot_Charlie]

Thank you Old hob for the info. My understanding now is that ACL( owned by some if not all of wasps directors.) own the lease to the stadium not Wasps holdings , therefore there is no value for the sacked employees or creditors in the stadium. Wasps own the £35 million bond liability so wasps holdings will go under with a very big splash and the creditors will get nothing.
It appears to be scandalous mismanagement by the directors.

Considering when many of them are mutual across the various companies.

Even the "lead buyer" (the guy heading up the SA consortium) only resigned as a director of Wasps Holdings in mid-2021.

It absolutely stinks.

[Rugbygramps]

Thank you Old hob for the info. My understanding now is that ACL( owned by some if not all of wasps directors.) own the lease to the stadium not Wasps holdings , therefore there is no value for the sacked employees or creditors in the stadium. Wasps own the £35 million bond liability so wasps holdings will go under with a very big splash and the creditors will get nothing.
It appears to be scandalous mismanagement by the directors.

Considering when many of them are mutual across the various companies.

Even the "lead buyer" (the guy heading up the SA consortium) only resigned as a director of Wasps Holdings in mid-2021.

It absolutely stinks.

Agreed and Richardsons name is at the centre of it all.

[mol2]

Perhaps the P share should be allocated to Premiership teams as they are promoted.

Teams that go bust must lose their P share and it’s value/income be assigned to the remaining Premiership teams. I am sure the creditors who lost money would be unhappy if the club were able to keep income generating assets that the administrators or receivers were not allowed to be used to pay the money owed.

Relegated teams again may keep their P share for a limited time on the assumption they may well be promoted again. Perhaps a maximum of 4 or 5 years with a reduced income after 2 years and immediately if they are relegated again from the championship. That assumes the P share generates income!

There also needs to be a better ways of preventing clubs falling into the hands of asset strippers who separate the physical assets from the costly bit of paying playing staff and clear off, selling the assets and leaving the team high and dry.

[wigworth]

Does anyone know if any alternative arrangements have been made for the Challenge Cup fixtures Wasps were scheduled for? With them and Worcester gone surely that complicates matters for that comp.