From today's Daily Telegraph.
Mike Ashley identified as preferred bidder for Wasps and Coventry City stadium
Exclusive: Whether owning either Wasps or Coventry City is a longer-term goal remains to be seen
The Mike Ashley-owned Frasers is on the verge of becoming Coventry City and Wasps’ new landlord after being identified as the preferred bidder for the Coventry Building Society (CBS) Arena.
Arena Coventry Limited (ACL) confirmed on Wednesday that it, Arena Coventry (2006) Limited and IEC Experience Limited had applied to the Court for the Companies to be placed in administration ahead of an expected takeover.
A spokesman added: “We anticipate that the administration orders will be made in the forthcoming weeks.
“The Companies and the proposed administrators from FRP Advisory have run an accelerated sales process to sell the business and assets of the Companies and have identified a preferred bidder.
“The Arena will continue to trade as normal. We would like to thank all the working parties involved in helping the Companies get to this stage and we are delighted that the doors will remain open to this flagship venue.”
The stadium business has been forced into administration after the same fate befell Wasps, who secured it in 2014 on a 250-year lease.
Former Newcastle United owner Ashley was last month linked with a move to buy the stricken Premiership rugby club but it would appear the stadium was the real target as part of a plan to make Coventry his new stronghold.
Whether owning either Wasps or Coventry is a longer-term goal remains to be seen, with neither part of a deal Telegraph Sport has been told nevertheless will see Frasers commit “100 per cent” to both teams continuing to play at the arena.
The venue’s plight had thrown its staging of City’s Championship game against Blackburn Rovers on Tuesday night into doubt but it ultimately went ahead there.
Frasers, which would purchase the lease to the ground but not the council-owned freehold, is said to be keen to put its stamp on Coventry and demonstrate its commitment to the area as it seeks planning permission for a vast new headquarters on the edge of the city.
The CBS Arena also houses a hotel and large casino, and Ashley’s appetite for gambling has been a hallmark of his business career.
The 58-year-old recently stepped back from day-to-day operations at Frasers and is said to be focused on the new development, which includes plans for a distribution hub with a new head office, retail space, a hotel, restaurant and conference facilities.
Wasps relocated to Coventry in 2014 and hit trouble after income came under heavy pressure from the pandemic.
When it announced its intention to appoint administrators, ACL said: “The arena is a profitable standalone business with huge potential and therefore is attracting strong interest from a number of parties.
“We have filed a notice of intention to appoint administrators and we will be aiming to use this period to complete a deal with a venue operator.”
The exhibitions giant NEC Group reportedly expressed interest in the sale early on, but is now said to have dropped out.
Always a Wasp