Wasps facing relegation

[Vespula Vulgaris]

I'm just gutted. Been flagging this for years with our incredible £10m annual losses since 2014, been shot down every time. Gives me no pleasure to say it's been coming a long time.
I'm not sure if we are still banned from saying anything negative abut Wasps, but if I am banned it doesn't matter now anyway.
My point is I am amazed no-one here is angry with the useless incompetant Wasps board who has presided over this debacle, Eastwood Vaughan and Richardson in particular.
They have watched the disaster unfurl. £60M losses in 6 years. Waited until we hit the buffers and screwed the bond holders and loyal suppliers, with no plan B in 7 years of clear sight Coventry did and could not work.
Lied to people - quote Richardson recent statement
https://www.coventrytelegraph.net/sport/rugby/wasps-owner-derek-richardson-breaks-24747475
So 160 years of history thrown under the bus. Yes we were going under in 2014, but all we have done is extend the pain whilst ruining our reputation with the financial community and rugby community, and taken money from good people with false promises - virtually nothing in the 2014 bond prospectus came to fruition
I was interested to see what hey had to say tonight, but the Wasps website is down
It's not over, possible we can rise but not with the current 3 bids I am aware of. All three want the stadium and not the  rugby club, even Armstrongs backers are venture capitalists who will be out for a fast buck
For me if we can find a proper rugby backer soon, who can honour the debts to the bondholders, sell the stadium and retain some staff and players, then get us back to within the M25 or near as hell, we can get back into premiership rugby with a future. And an 18,000 capacity stadium

Apart from disagreeing with almost every word you wrote...a couple of things.
Your claiming foresight of which almost every rugby support already knows, they all run at huge losses, so you're foresight isn't unique as much as you claim it to be.
I am not sure we'd be here if Covid hadn't gutted our financial model for 2 years, not just in in-flow but decemated in out-flow..
Related to the taking money from good people - purchasing a staggering 6.5% return bond is no different to buying ultra high risk stocks. If you know anything about finance, you'll know what I am saying.

Agreed 100%. I don't think the statement is lying that the businesses are viable in the long-term.

[Hymenoptera]

I'm as gutted as the next man but let's not get all Gwyneth Paltrow about it.
No one sets out to fail, we got another 7 years of Wasps that had DR not stepped in, we wouldn't have enjoyed (mostly). To now start throwing stones is a bit distasteful in my eyes.

[Westy68]

For me it was the big statements made at the beginning on how wealthy the club would be that has upset me. Of course no one goes out to fail but it does look like they were well out of their depths and have made recent statements that they shouldn't have done.

I will agree the extra 7/8 years have seen some great times, especially the 1/4 final against Exeter, fantastic atmosphere and result. We did play some great rugby at times which I loved, just upset but grateful for the times

[SteveTodd]

They have watched the disaster unfurl. £60M losses in 6 years. Waited until we hit the buffers and screwed the bond holders

I can fully understand your disappointment But I want to point out that the bond holders have not been screwed (I invested a significant amount in the bond). The risks were there for all to see, and it looks like there is every chance of the capital being returned with all of the contract interest paid, and also a chance of the surplus interest (after the original maturity date) being paid too. Although I did hope that Wasps would somehow turn it around, this was always the way that I thought that it would end, there just wasn't a realistic business plan being implemented. Although to be fair, it was made much worse by Covid, and if Covid had not happened, they may well have been able to refinance without administration, but they were in trouble with their finances before Covid.

[mike909]

Regarding the "Act of God" clause re relegation and going into administration, does anyone have background on how the relevant accounts were pre Covid such that Wasps Holdings Ltd could demonstrate their business assumptions were as much on track as they predicted?

[wasps]

Regarding the "Act of God" clause re relegation and going into administration, does anyone have background on how the relevant accounts were pre Covid such that Wasps Holdings Ltd could demonstrate their business assumptions were as much on track as they predicted?

Unfortunately Mike, I think that's what's known as clutching at straws

[NellyWellyWaspy]

Regarding the "Act of God" clause re relegation and going into administration, does anyone have background on how the relevant accounts were pre Covid such that Wasps Holdings Ltd could demonstrate their business assumptions were as much on track as they predicted?

That is for Wasps to argue with the PRL, and indeed they may have already done so. One thing is for certain. As soon as they are officially in Administration, and with their website down I suspect they are, and as such all Social Media accounts ought to now also be locked, as well as any booking sites, shop, etc. We will not know anything until the Administrator says something, or someone with access to the Court can confirm an order has been made.

The administrator's first duty is to secure assets, publish their appointment (in the London Gazette) and then call a creditor's meeting, which is usually advertised in a local paper. Only 7 Administrations are so far listed for today in the London Gazette, not for Wasps.

[Shugs]

Let’s be clear - there’s still a huge amount to happen here. We don’t know if we’ll be relegated or lose our P share. Once the emphasis shifted from financing the debt to seeking a takeover that was always going to happen in administration. People with the sort of money to buy the level of assets in the mix don’t get that much of it by spaffing it up the wall on a regular basis when they don’t have to. So now we’ll see if any of them are serious. There’s a huge mix of alternatives with Wasps the rugby entity not being of standout appeal but we don’t know. There is a huge amount to happen in this yet.

[Shugs]

Seeing very much uncorroborated social media posts urging Wasps fans to tune in to CWR tomorrow at 8.15 for “better news”. Can hardly be any worse.

[westwaleswasp]

I'm just gutted. Been flagging this for years with our incredible £10m annual losses since 2014, been shot down every time. Gives me no pleasure to say it's been coming a long time.
I'm not sure if we are still banned from saying anything negative abut Wasps, but if I am banned it doesn't matter now anyway.
My point is I am amazed no-one here is angry with the useless incompetant Wasps board who has presided over this debacle, Eastwood Vaughan and Richardson in particular.
They have watched the disaster unfurl. £60M losses in 6 years. Waited until we hit the buffers and screwed the bond holders and loyal suppliers, with no plan B in 7 years of clear sight Coventry did and could not work.
Lied to people - quote Richardson recent statement
https://www.coventrytelegraph.net/sport/rugby/wasps-owner-derek-richardson-breaks-24747475
So 160 years of history thrown under the bus. Yes we were going under in 2014, but all we have done is extend the pain whilst ruining our reputation with the financial community and rugby community, and taken money from good people with false promises - virtually nothing in the 2014 bond prospectus came to fruition
I was interested to see what hey had to say tonight, but the Wasps website is down
It's not over, possible we can rise but not with the current 3 bids I am aware of. All three want the stadium and not the  rugby club, even Armstrongs backers are venture capitalists who will be out for a fast buck
For me if we can find a proper rugby backer soon, who can honour the debts to the bondholders, sell the stadium and retain some staff and players, then get us back to within the M25 or near as hell, we can get back into premiership rugby with a future. And an 18,000 capacity stadium

Sorry, this is not going to happen. Ever. The cheats can't get 10 k. Rugby in London is Quins. End of.

[Rossm]

Worcester Warriors to appeal Premiership suspension and relegation under 'no fault insolvency'

From the Beeb.

https://www.bbc.co.uk/sport/rugby-union/63234851

I would assume we will be doing the same.

[mike909]

Seeing very much uncorroborated social media posts urging Wasps fans to tune in to CWR tomorrow at 8.15 for “better news”. Can hardly be any worse.

a.m or p.m.?

[Westy68]

Sorry shugs seriously dump what is CWR

[Vespula Vulgaris]

Sorry shugs seriously dump what is CWR

I assume Coventry and Warwickshire Radio

[NellyWellyWaspy]

8:15 is the Phil Upton Show. At 8 they have a longish news slot, followed by weather. At around 8:15 they have a slot called Good Morning, Bad Morning. This morning the first story was Mike Ashley and Sports Direct possibly opening up that new place. It quickly descends in to Trivia usually, for example, Deliveroo offering finance for food purchases.