I am with Jamestaylor on this. In business is this an acceptable practice, or are we kicking the can down the road?
AIUI, not only is acceptable practice from what we understand it is prudent and best practice.
True.
But.
Who is going to lend money to Wasps? Nobody in their right minds. I do not believe any financial institution would dump over £50m (which is what is needed, and probably then some) in to a black hole, with no hope of repayment (and, let's face it, there would be no hope of repayment).
So, I look to the statements made, including that email. 'Refinancing package'. Not loan, investment or bonds or anything indicating a traditional injection of funds from a financial institution seeking to make a financial gain on capital investment made.
All refinancing package means is, it is one sum of money to consolidate and pay off a number of debts and loans. Refinancing does not indicate the source of funds, nor what will be given in return. Any money given will, in my opinion, be lost, so whatever is given in return must be non-financial. Ownership maybe? It is a poisoned chalice (because any owner would likely have to inject more funds in to the future).
Rather like buying a pint of beer. I don't need to, I don't really gain from buying it, but I want to. I get the warm glow that you get from meeting a desire. Granted, £50+m is a bit more than a fiver, but that rather depends on who you are.
We all know Derek has loved and worked hard for Wasps, cost him a lot of money. But, all things come to an end at some point.
Cecil Duckworth isn't in charge at Warriors either, yet look what he did for them.