Discussion in 'Wasps' started by CCFC54321, Oct 22, 2018.
I'd rather have our owners than some who moved a club permanently away from its home, thanks.
Wasps stung by £10m pre-tax losses
Wasps stung by £10m pre-tax losses
13 Nov 2018 Midlands Business
Pre-tax losses have slid to nearly £10m at the group that owns Premiership rugby club Wasps, who play their home games at Coventry's Ricoh Arena, new accounts have revealed.
Wasps Holdings has posted a pre-tax loss of £9.7m for the year to 30 June 2018, compared to a £4.7m loss in the prior financial year.
The new accounts have also confirmed that the group's revenue remained flat at £32.8m after recording £32.9m in 2017.
The results come after chief executive Nick Eastwood outlined his plans for the next stage of the group's growth in an exclusive interview with Insider.
Chairman Derek Richardson, in a statement signed off by the board, said: "This was our third full year at the Ricoh Arena, a year which saw the Wasps Group continue to invest and mature as a business.
"We have built on the foundations established in the previous years and I am happy with the progress made during the year.
"The group continues to seek to maximise its use of the Ricoh.
"The continued engagement with new fans, businesses, clubs and schools resulted in another successful year of attendances for Wasps and business activities at the arena.
"The investment in the DoubleTree by Hilton hotel during 2015/16 provided further significant returns, with hotel income up year on year.
"The group is in a strong position to capitalise on the future opportunities available to us as one of the UK's leading sports, exhibition, conferencing and entertainment arenas."
Food and beverage sales decreased following a fall in spend-per-head at sporting events and conferences.
However, the group added that conference and exhibition income "performed well" with a similar level of income and improved margins for the year.
The Wasps Premiership rugby team reached the league semi-finals, losing to eventual champions Saracens.
The average attendances for the season for Premiership and European rugby matches decreased from 19,338 to 18,775 due to not holding a home semi-final.
The Wasps Netball team retained their title as back-to-back Vitality Superleague Netball champions.
Wasps Holdings added that season ticket sales for its rugby and netball teams reached record levels.
The Ricoh has a stadium capacity of 32,600 and has more than 215,278 sq ft of event space as well as a casino and the 121-bedroom hotel, whose income rose 6 per cent to £2.2m.
Sporting income rose from £16.7m to £16.7m and entertainment revenue rose from £1.1m to £1.2m but business income dropped from £10.5m to £9.9m.
The turnover of the arena's operating company, ACL, decreased due to fewer concerts and a reduction in naming rights revenue.
In a statement, Eastwood added: "These results reflect what in many ways was a watershed year for the business.
"We appointed a new commercial team focussed on the key revenue streams of the business and completed a comprehensive financial review, which resulted in a number of adjustments to prior year results.
"These were matters which needed addressing and that is exactly what we have done to allow us to move forward on a firm footing.
"We are currently reliant on the support of our majority shareholder, as are many professional sports clubs, but we are committed to building a self-sustainable business and the actions taken this year are important steps to that end."
My favourite bit was that sporting income rose from £16.7 million to £16.7 million an increase of nothing so surely it stayed the same
The CT finally featured an article. All the highlighted figures are on a downward trend.
Wasps' accounts reveal uncertain future as losses double
That must have hurt the telegraph writing that, I love the stadium value bit £60 million for what without sporting teams it is virtually worthless as who would want to buy a house there if they knocked it down
I notice that maintenance costs went up by 60% to over £1m.
Probably those cracks they found that were nothing to worry about
And sponsorship is down.
That statement by Richardson is pure spin, doubling losses but everything is improving. Fisher would be proud.
On their forum they are literally discussing where they could move next
I remember saying 12, 6, 3 months ago that Wasps were in trouble to a few Wasps apologists I know. They wouldn't believe me one bit.
Maybe they'll start to listen soon. Then again, trying to tell them anything was a bit like going onto the Brexit thread and trying to suggest not everything the EU does is absolutely perfect!
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Surely if true, did they not go for costs when SISU lost?
They'll get costs eventually but I believe generally the award is less than the expenditure to defend the case.
Even the CET and Giblet aren't trying to put a positive spin on these accounts. Things must be bad.
Good lets hope they go or at least sell half to the City.
Problem is can they make a profitt there are things on most days?
Funny how they just spent 100000 on a scoreboard when the old one was adequate.
What positives are there for wasps?
Even playing shit which affects the attendances even more.
At the moment though, why would CCFC want to buy half? Let's say Wasps offer 50% to CCFC for £10m. What benefit is there?
Tim said it would be easy to make a profitt if run right.
We would then have a say when we play. we would have a home rather then become romanies ourselves like wasps.
The issue is the massive debt we would be buying half of.
For us long term? Massive surely? We would have access to more revenues which means more money for the first team, able to run more non-match day events. It shows to fans a long-term future for the club- possibly increasing attendances. If Wasps then do go bust or leave afterwards, we are in the prime position to acquire 100%...
I didn't get the need for the scoreboard given the financial concerns, bizarre one..
it gives us a future Nick! We are present are paying £100k rent which is clearly going to sharply increase given the courtroom antics. Money well spend and obviously gives SISU some valuable collateral if they decide to sell up... foothold to bigger things in my opinion.
That's assuming they did buy it outright and it's not some sort of lease / advertisement agreement.
Would it though as things stand? Don't get me wrong it isn't the owning half of the Ricoh that is the worry, it's the financial situation of ACL and the repayment of the bondholders. You own half of that, you own half the responsibility to pay the bondholders back.
Surely if we own half of their debt then them going bust would be even more of a worry?
Very good point, hadn't thought of that...
That's the main worry. If "they" are struggling to pay the bondholders back, it then becomes a "we" are struggling to pay the bondholders back. There are probably ways with company structures to get around it but are Wasps then going to sell us half to give us the benefits without taking on the negatives? It would probably take a lot of money.
Yep agree, if we could negotiate the deal sop it was Wasps problem to pay back debts, then it wouldn't be an issue but doubt they are feeling that charitable.
Then it doesn't make any sense to sell to us, unless of course it's for a nice price.
The stadium / arena should be capable of making a profit but the big issue is the huge debt that needs to be serviced. ACL nearly went under with £14m debt, Wasps have come in and doubled the debt to allow the owner to pay himself back.
If ACL were allowed to fail and a new owner came in not having to take on the debt you'd have an attractive proposition.
At the moment buying 50% of the stadium would just mean taking on 50% of the debt.
I find it suspicious that they’ve managed to value the Ricoh at £60. It means to buy in to half at that rate would pay off the bond. I suspect that’s what they’re looking for.
Assume its been done on the same basis that the supplier has used with other clubs. They provide the screen and maintenance free of charge but they get the money generated from the advertising on it.
Agree, surely the only 'real' market value for this is the actual price paid... which wasn't this SISU's argument at court??
£60 is nearer to the true value than the £60 million they quoted
Putting my finance hat on, those accounts show a loss making business struggling to make a success of playing professional rugby and owning the Ricoh Arena. The value placed on the Ricoh is completely subjective and strangely enough will always be just enough to meet whatever banking or other finance covenants happen to be in place. Most significantly for Wasps and for us, the business is completely dependent on a rich owner funding on-going losses. If he were to walk away, the whole thing would collapse. However, there is no evidence whatsoever that will happen in the foreseeable future. The impending need to successfully re-finance the Ricoh debt is a potential problem, but in reality there's always a way to do that, particulaly if the interest rate on offer to new investors is attractive enough.
Anyone hoping that the whole thing is going to go tits up, is being unrealistic. Rich men are proud men, and don't like to admit they've made mistakes. Perhaps we could play the long-game and hope he loses interest, but a total collapse of the Irish insurance market or his untimely demise appear to be the only likely game-changers.
Funnily enough, the worse Wasps' financial position, the less they need us. If Richardson is prepared to put £5-6m a year into Wasps, he's not desperate for £100,000 from us, is he? I would suggest we don't piss him off.
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