Wasps facing relegation

[mike909]

If we go into admin, Coventry Council are going to take the stadium back. They've got an interested buyer (two technically if Wasps are rescued) and the rights to sell the lease again. Why would they have any interest in leaving it with Wasps?

As a council, their duty is towards VFM. And so unless they could demonstrate that their action was reasonable they might be at risk of challenge.  Their position is stronger than it was before 2010, as the local govt governance body was abolished.  This means coordinated action is less likely,  but could still fall foul  of the Dept response for LG.

But in short,  Members  at the Council have a duty towards the best financial outcomes. Leaving a lease with Wasps would need to demonstrated as compatible with duties.

[Steve from Cov]

Coventry City Council have had an excellent relationship with Wasps ever since they first showed interest in the CBS and will be doing what they can to support the club during this difficult period.

[InBetweenWasp]

My understanding is that penalties can be avoided if club can demonstrate administration is directly linked to the pandemic.

Back in October '21 I went to the 'Fan Forum' at the Training Centre and Vaughan mentioned in the Q&A that the business was on to break even the year COVID hit.  There's no detail around it nor was he asked to substantiate on it during the evening.

There was (another) hefty loss that year in the accounts. 

It would be interesting to know whether by breakeven he meant not making a loss that year, or that part way through the year they were on track to be cashflow neutral/positive to have stemmed the losses and go onto the next year in a good place.

If the latter, then presumably it's demonstratable the impact that COVID had - especially when you consider a home SF for the Prem and Final at HQ (Not sure how income works for Clubs on that - do they get a top-up payment from ticket sales/tv coverage?).

[Neils]

My understanding is that penalties can be avoided if club can demonstrate administration is directly linked to the pandemic.

Back in October '21 I went to the 'Fan Forum' at the Training Centre and Vaughan mentioned in the Q&A that the business was on to break even the year COVID hit.  There's no detail around it nor was he asked to substantiate on it during the evening.

There was (another) hefty loss that year in the accounts. 

It would be interesting to know whether by breakeven he meant not making a loss that year, or that part way through the year they were on track to be cashflow neutral/positive to have stemmed the losses and go onto the next year in a good place.

If the latter, then presumably it's demonstratable the impact that COVID had - especially when you consider a home SF for the Prem and Final at HQ (Not sure how income works for Clubs on that - do they get a top-up payment from ticket sales/tv coverage?).

It was on 2 November.
He also said to a straight question that the bonds were "sorted" as their financial advisor had placed an expert into the Arena Management to assist with putting everything in place. Maybe it was at the time or maybe an "untruth".

[Neils]

I wish LoL had kept his mouth shut - just got an email telling me to read all about Wasps "being too big" to relegate! Plus the vitriol on what goes under the name of social media.

[WonkyWasp]

Maybe Lol is desperately trying to convince himself of an improvement in our situation. I think we are different from Wuss but not because of history or size or such.  Wuss were/are the victims of (in imho) a vicious calculated mugging by their owners, and thank god our owner is not like that.  We were/are the victims  of something quite beyond our control, ie a pandemic.  Just my view.

[Heathen]

At the back of my mind, I am not sure that our business plan from the outset, was particulary well thought out (especially the what/if scenarios about the bond repayment) and robust enough.

I will be very interested to see how the "new owners" will repay the overdue bond. As I imagine, will the bondholders, particulary those who are long term Wasps fans.

[Shugs]

Agree about Dallaglio’s comments. I’m hoping the dialogue the club must be having with PRL carries more weight in their minds than his well intentioned but incorrectly executed words. I do believe we and Worcester are different cases and should be treated as such but not in the ways lol suggested.

[InBetweenWasp]

It was on 2 November.
He also said to a straight question that the bonds were "sorted" as their financial advisor had placed an expert into the Arena Management to assist with putting everything in place. Maybe it was at the time or maybe an "untruth".

Must have been a different one on the 2nd Nov, as I was definitely there in late October: http://onceawasp.com/forums/index.php/topic,4284.msg73415.html#msg73415

When asked about finances 5 days prior to the 2nd November the answer wasn't that the Bonds were sorted, nor that an expert had been placed into the Arena Management.

[Neils]

It was on 2 November.
He also said to a straight question that the bonds were "sorted" as their financial advisor had placed an expert into the Arena Management to assist with putting everything in place. Maybe it was at the time or maybe an "untruth".

Must have been a different one on the 2nd Nov, as I was definitely there in late October: http://onceawasp.com/forums/index.php/topic,4284.msg73415.html#msg73415

When asked about finances 5 days prior to the 2nd November the answer wasn't that the Bonds were sorted, nor that an expert had been placed into the Arena Management.

Sorry my bad it was the 27th Oct. The question was by somebody alongside me and that was the answer given by Vaughan. He was asked about it again during the free-for-all questions afterwards. 

[Raggs]

If the 2nd extension was on the 3rd/4th, does that mean Wasps have until the 18th?

[Neils]

If the 2nd extension was on the 3rd/4th, does that mean Wasps have until the 18th?

Week on Wednesday is said to be the drop dead date. Although the application seems to have been made late Tuesday.

[MarleyWasp]

Yes, filed on Tuesday 4th October, so the 17th or 18th would be the deadline. The previous one was filed on a Wednesday, so it may be that the day it is filed is day 1.

[Raggs]

Yes, filed on Tuesday 4th October, so the 17th or 18th would be the deadline. The previous one was filed on a Wednesday, so it may be that the day it is filed is day 1.

So that'd be after the chiefs game. Let's hope there's been an announcement by then, otherwise that'll be huge pressure on the players.

[InBetweenWasp]

It’s a shame at times that this forum is so open, as it means being careful in sharing certain information.

I suspect there’s a few on this board who are well connected, but unable to share certain bits of information they hear via reputable sources because of visibility of all posts.