Accounts to June 2021

[hookender]

Having spoken to Vaughan on a personal level and noting his comments re the bond on a public level, would he have taken a contract with us unless he saw a way out / exit plan ?

[InBetweenWasp]

The penny is dropping on the SBT website and there seems like there is a realisation that:

-- SISU aren't going to build a new stadium
-- That Wasps are unlikely to go bust in the near future
-- That even if they did SISU are unlikely to opt to purchase/bid based on valuations

https://www.skybluestalk.co.uk/threads/wasps-downward-spiral.92943/page-96

Would be expecting an update sometime soon on the bond refinancing. 

Hopefully, after the 26th Jan Government COVID Review, we'll start to see people beginning to ease back into the stands. 

I know this hasn't been an issue for CCFC who have averaged decent 18k-20k gates this season but in the politest way possible, I think there's a largely older demographic when it comes to the average age of a Wasps/Rugby fan so even with the significantly smaller fan base, we're seeing a number of people who are shielding, unwell or not willing to take the risk of attending a game just yet.  That's before we consider those who happen to test positive, get pinged or who decide to put other life events before games having missed out for several years.

[Wombles]

The "wasps are definitely going to go bust" posters I believe was based more on their hope and dislike for us rather than a sound evidence base.
As a business group we have multiple income streams available to us. And the aim is that the rugby club is seen as central to the business, but revenue is gained far beyond what the club itself generates.

We have a portfolio of assets that will make refinancing more than possible, and indeed as a group we have things that can be invested in.
What is not mentioned is that at the club and fans meeting last year we were informed that before the pandemic we were reaching a break even point. The pandemic has caused that to go backwards, but not irrevocably so.

Our crowds are not great, and I think that is an issue with the pandemic, moving to a new area, rugby not being as large a sport as football, and also no longer providing larger amounts of free tickets. But again it is all about time. By engaging with the kids in their clubs, schools etc we will develop a growing fanbase. It is not a overnight problem to be fixed, but a more steady improvement over time.

Do I think we will go bust? no . Do I think we will move back to London?  no. Do I think we are establishing ourselves and growing slowly but surely, yes.

[Rossm]

As I keep telling my wife, there is nothing wrong with debt, so long as you continue to manage it. The bond investors seem to agree with me. The price has been rising and all the interest payments have been met That is all an investor wants to know. I don't see any problem with refinancing the bond, though I doubt we'll get much, if any, information. Financial authority rules would preclude that.

[Lwasp]

Only thing that matters really is whether it is secured or unsecured debt. Owing £20k on a credit card is a completely different proposition to owing £20k on a mortgage.

As long as the CBS assets are increasing in value so too can the debt, subject to sufficient cash flow to cover the interest payments. At some point you would like to see the rugby side break even so a return can be generated by the rest of the group.

[MarleyWasp]

If the stadium as a business is not a viable, profitable business for Wasps, I fail to see how it will suddenly be profitable for CCFC.

[InBetweenWasp]

If the stadium as a business is not a viable, profitable business for Wasps, I fail to see how it will suddenly be profitable for CCFC.

Unless the difference was the potential for increased F&B spend through greater footfall (at £18-20k attendance) and more home games for CCFC.  Would be interested to know the difference in F&B spending.  I'd assume you'd have more spending pre and post-game but not during the game as you're not allowed to drink in view of the pitch still, right?

For all the jibes at Wasps for being reliant on Derek (we are for now), it seems like we have plan to become sustainable without Derek's input.  Unfortunately for CCFC, they owe £20m to SISU (a loan that doesn't seem to need to be serviced but is repayable to SISU - A bit like ours from Derek - and runs the risk of being called in if needed), have no real assets and a turnover similar if not smaller than the our Rugby business and are totally and utterly beholden to SISU.  There's nothing really for SISU to 'sell' or for a prospective new buyer to 'buy'

Who'd buy a sports team these days!

[Shugs]

Correct. The football club have zero assets other than their playing staff and right to play in the Football league. Also, crowds of 18-20k are not always the norm. For the recent cup game they had just under 9k. On the rugby side physical crowds may be down but crowd revenue is probably stable given Vaughan’s dual admission that 1) less freebies are now being given out and 2) A third of people have bought tickets but not attended for one reason or another. As mentioned above the bond will be refinanced against the stadium and we’ll move to a self sustaining position. The reduction in the cap will make that a quicker process for us as well.