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Exclusive: Wasps takeover deal in jeopardy over 'P' share
Consortium led by Wasps' former chief executive David Armstrong, and backed by South African millionaire Richard Böttger, are behind offer
By
Ben Coles,
RUGBY REPORTER
14 October 2022 • 2:01pm
Wasps have received an offer for the club but fear it will fall through if their 'P' share is not retained. Failing to find a deal could see Wasps go to the wall ahead of the imminent administration next week.
It can be revealed that a consortium led by David Armstrong, the Wasps' former chief executive, and backed by South African millionaire Richard Böttger, part of Terminum Capital, are behind the offer. Other offers have been submitted for the stadium site only, while the deal from the Armstrong consortium on the table includes the club, the Coventry Building Society Arena plus on-site hotel and casino.
Wasps, led by chief executive Stephen Vaughan, have appealed to both Premiership Rugby and the Rugby Football Union to be flexible when it comes to the 'P' share and to allow for the share to be included as part of a takeover of the club, as opposed to new owners having to purchase it at a later date. The lucrative 'P' share entitles shareholders to a percentage of the central income of the league as well as voting rights.
Should Wasps enter administration then the club would be automatically relegated from Premiership, a punishment the club are ready to accept with the objective of trying to win promotion immediately, but with the club's 'P' share potentially removed. Wasps new owners would then have to pay an additional £9.8 million for the 'P' share to be returned to the club following any subsequent promotion.
Without the 'P' share being included as part of a purchase by new investors – a change which would need to be approved by a vote from owners across the league, given under current regulations the 'P' share can potentially be purchased by Premiership Rugby and divided amongst the clubs when Wasps enter administration – Wasps fear the deal will collapse and the club will go out of business.
Telegraph Sport also understands that there are concerns over losing key clubs such as Wasps from the league ahead of negotiations for Premiership Rugby's next broadcast deal, with the current agreement with BT Sport worth £110 million set to expire in 2024.
England internationals are understood to have been in tears this week over the prospect of having to leave Wasps behind to join new clubs, although Wasps remain hopeful that if the 'P' share is included as a part of a purchase that the club could even potentially fulfil their fixture against Leicester Tigers next Sunday.
Wasps pulled out of their fixture with Exeter Chiefs scheduled for Saturday earlier this week, with the club's training ground now shut and agents of players searching for new clubs for Wasps players including England internationals Joe Launchbury and Jack Willis with the club currently suspended indefinitely from the Premiership.
Wasps previous debt has also been described to Telegraph Sport as unbelievable and horribly managed, regardless of selling stadium naming rights and return of Coventry City FC, with Wasps' financial downfall accelerated by the Covid pandemic ahead of HMRC's winding-up petition.
Topic: Armstrong bid gone (Read 2379 times)
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