Wasps downward spiral... (3 Viewers)

MalcSB

Well-Known Member
The Trustee has been challenged by one of the bond holders as to why no action has been taken with the bonds in default from both the original and revised dates. No reply has been forthcoming as yet, I wonder what penalties there are for Trustees who fail to fulfil their duties?

Who would lend, or grant, money to a failing organisation who renege/ default on agreements with investers?
 

CCFC54321

Well-Known Member
The Trustee has been challenged by one of the bond holders as to why no action has been taken with the bonds in default from both the original and revised dates. No reply has been forthcoming as yet, I wonder what penalties there are for Trustees who fail to fulfil their duties?

Who would lend, or grant, money to a failing organisation who renege/ default on agreements with investers?
The question keeps getting asked by people I work with is how on earth can you pay back….

£35m of bond funding
£13m to CCC/WM
PLUS approx £20m current operating costs to the business?

Its impossible with their current business strategy. Am I missing something here?
 

oldfiver

Well-Known Member
The question keeps getting asked by people I work with is how on earth can you pay back….

£35m of bond funding
£13m to CCC/WM
PLUS approx £20m current operating costs to the business?

Its impossible with their current business strategy. Am I missing something here?

They are expecting the £13m to be a Grant (non repayable) if they put that to pay Bonds it is enormous income boost
 

CCFC54321

Well-Known Member
They are expecting the £13m to be a Grant (non repayable) if they put that to pay Bonds it is enormous income boost
When local businesses are struggling and a city centre that’s like steptoes backyard we potentially could give a London rugby club £13m. How morally disgusting.

They get that £13m then some understanding of how they got it needs to be carried out.
 

oldfiver

Well-Known Member
When local businesses are struggling and a city centre that’s like steptoes backyard we potentially could give a London rugby club £13m. How morally disgusting.

They get that £13m then some understanding of how they got it needs to be carried out.


Well I suggest you will be writing to Martin Reeves. CEO at CCC , Chairman CWLEP and roaring success as a Director of ARENA Coventry
 

Peter Billing

Well-Known Member
Surely to access WMCA public cash there must be a minimum starting point that the business is financially viable before they even assess the application. The total debt must be pushing somewhere around £70m in the next accounts. What will it be next year, £80m? What will it be in 5 years time?
 

Moff

Well-Known Member
Well I suggest you will be writing to Martin Reeves. CEO at CCC , Chairman CWLEP and roaring success as a Director of ARENA Coventry

I would imagine there would be a lot of complaints to the Local Government Ombudsman…..and possibly something Private Eye may do some digging on, as I know they have cast their eyes on Wasps and CCC before.
 

Grendel

Well-Known Member
Surely to access WMCA public cash there must be a minimum starting point that the business is financially viable before they even assess the application. The total debt must be pushing somewhere around £70m in the next accounts. What will it be next year, £80m? What will it be in 5 years time?

They will as ever have a jolly good 5 year business plan
 

Grendel

Well-Known Member
They're close to being sold out for every game don't you know. Must be true it was reported in the Telegraph.

Well they have been good at getting media onside to be fair, frankly the stadium will never make money. If Richardson is dumb enough to keep ploughing it into a lost cause that’s his problem - we should have got a 50 year lease then none of this would Matter
 

Terry Gibson's perm

Well-Known Member
Well they have been good at getting media onside to be fair, frankly the stadium will never make money. If Richardson is dumb enough to keep ploughing it into a lost cause that’s his problem - we should have got a 50 year lease then none of this would Matter


I agree that the stadium doesn’t seem to be able to make money, that’s what confuses me with Sisu being so desperate to get it at one time (maybe still). The teams in the prem that are getting lots of money aren’t getting it through their stadia it’s all about the tv money and merchandise.
 

fernandopartridge

Well-Known Member
Surely to access WMCA public cash there must be a minimum starting point that the business is financially viable before they even assess the application. The total debt must be pushing somewhere around £70m in the next accounts. What will it be next year, £80m? What will it be in 5 years time?
I award public contracts for a living, it would be an exceptional circumstance to award any money to somebody in as poor a financial position as Wasps even as a grant. Ultimately, what is the public benefit of granting funding to them?

Sent from my SM-G935F using Tapatalk
 

Brighton Sky Blue

Well-Known Member
I award public contracts for a living, it would be an exceptional circumstance to award any money to somebody in as poor a financial position as Wasps even as a grant. Ultimately, what is the public benefit of granting funding to them?

Sent from my SM-G935F using Tapatalk

Because they have friends in the right places-or at least they used to.
 

Flying Fokker

Well-Known Member
When local businesses are struggling and a city centre that’s like steptoes backyard we potentially could give a London rugby club £13m. How morally disgusting.

They get that £13m then some understanding of how they got it needs to be carried out.
Have you been to Coventry City Centre lately? It is better than you suggest. Pool Meadow/Fairfax Street is a bit ‘tired’ and no doubt other locations fit the profile.

But the prospet of money being spent on Wasps ahead of the rest of Coventry is disgusting.
 

Gynnsthetonic

Well-Known Member
Still can't believe Eastwood, Vaughan or Richhardson haven't come out with any statements these past 6 weeks, totally silent, the bond holders have only had snippets from the financial trustees.
 

MusicDating

Euro 2016 Prediction League Champion!!
The video interviewing Eastwood at the point of takeover is well worth a listen

He’s Tim fisher I am sure

Shugs 01/07/22 - 'The stadium is very far from being a white elephant. It will still be the differentiator between us and most other clubs. The stadium is Wasps future. I’m relieved we’ve got owners with such vision.'

They constantly point out how bad our owners are (we know thanks), but just accept everything their owners say without question. Bonkers.
 

duffer

Well-Known Member
Shugs 01/07/22 - 'The stadium is very far from being a white elephant. It will still be the differentiator between us and most other clubs. The stadium is Wasps future. I’m relieved we’ve got owners with such vision.'

They constantly point out how bad our owners are (we know thanks), but just accept everything their owners say without question. Bonkers.

The fact that a large part of the bond went to paying back Richardson, and that he's clearly not intending to loan them the money back again, should tell Wasps supporters a story.

Their 'white knight' has had enough, and for all of the upbeat statements about refinancing the bond repayments, they've had years to organise it but still come up short.

They're now scrabbling around for public money, most likely in the hope of somehow increasing the security they can offer another lender, but as yet there's no evidence that it will come off.

A more robust trustee might well have pulled the plug already on the bond default, but a bit like SISU's administrator, you have to wonder how independent someone appointed by Wasps themselves will really be.

Also of course, there may be the genuine concern that the true value of the stadium isn't actually enough to settle the bond repayments, so even if the trustee forced a sale the bondholders won't get a full repayment.

Any bondholder who isn't nervous, hasn't thought it through. Wasps have put themselves into a horribly precarious position, because of their hubris. "Richest club England/Europe/The World", oh dear.
 

Grendel

Well-Known Member
The fact that a large part of the bond went to paying back Richardson, and that he's clearly not intending to loan them the money back again, should tell Wasps supporters a story.

Their 'white knight' has had enough, and for all of the upbeat statements about refinancing the bond repayments, they've had years to organise it but still come up short.

They're now scrabbling around for public money, most likely in the hope of somehow increasing the security they can offer another lender, but as yet there's no evidence that it will come off.

A more robust trustee might well have pulled the plug already on the bond default, but a bit like SISU's administrator, you have to wonder how independent someone appointed by Wasps themselves will really be.

Also of course, there may be the genuine concern that the true value of the stadium isn't actually enough to settle the bond repayments, so even if the trustee forced a sale the bondholders won't get a full repayment.

Any bondholder who isn't nervous, hasn't thought it through. Wasps have put themselves into a horribly precarious position, because of their hubris. "Richest club England/Europe/The World", oh dear.

he did loan the money back again
 

Gynnsthetonic

Well-Known Member
The fact that a large part of the bond went to paying back Richardson, and that he's clearly not intending to loan them the money back again, should tell Wasps supporters a story.

Their 'white knight' has had enough, and for all of the upbeat statements about refinancing the bond repayments, they've had years to organise it but still come up short.

They're now scrabbling around for public money, most likely in the hope of somehow increasing the security they can offer another lender, but as yet there's no evidence that it will come off.

A more robust trustee might well have pulled the plug already on the bond default, but a bit like SISU's administrator, you have to wonder how independent someone appointed by Wasps themselves will really be.

Also of course, there may be the genuine concern that the true value of the stadium isn't actually enough to settle the bond repayments, so even if the trustee forced a sale the bondholders won't get a full repayment.

Any bondholder who isn't nervous, hasn't thought it through. Wasps have put themselves into a horribly precarious position, because of their hubris. "Richest club England/Europe/The World", oh dear.
No way is the stadium valuation anything like the figures they are banding around, at least 13m worth of dilaps for a start so that will come the totally amount
 

Grendel

Well-Known Member
How much though, can't see him loaning any more.
The initial bond also paid the interest payments

He loaned the whole £10 million back didn’t he?
 

slyblue57

Well-Known Member
Whilst this reads great news that the London Wasps seem financially fucked does any one really believe that our beloved Coventy council will let them go bust ?
 

Grendel

Well-Known Member
No too much embarrassment

Unless the embarrassment can come first?

Some key council members aren’t that enthused anymore - I believe Duggins is though - but Jon Mutton is the thinking mans Duggins - the councillors are so stupid how do any of these people get elected.

Jane Innis is a hoot
 

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