Always a Wasp
General Category => Wasps Rugby Discussion => Topic started by: Neils on March 08, 2023, 07:54:42 PM
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It is said that the DCMS will have received payment due from the sale of the P Shares from both Wasps and WW.
So who paid money for said P Shares. It was said that PRL would buy them back but they are basically fundless so the remaining 11 clubs would have to shell out. With the overall funding problems is that realistic.
It is said that most clubs valued the Shares at around 13-14 million each but recently the Wasps and WW were said to be 8-9 million ( thus not helping other clubs accounts) which is still quite a large chunk of money for a fair proportion of the clubs to find. Yes they get some back as a greater share of TV money but still I find it puzzling.
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There is some interesting accounting going on where the P Shares can be valued at 13-14 million when you own them, but only 8-9 million when you want to buy them :)
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Is it remotely feasible that no cash has changed hands and they?ve just transferred to their balance sheet?
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Were the P shares worth 13-14 million before the clubs voted to hand, whatever it was, 50% or so of TV revenue to CVC?
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Were the P shares worth 13-14 million before the clubs voted to hand, whatever it was, 50% or so of TV revenue to CVC?
Clubs were valuing the shares at that figure for their accounting processes based on advice from PRL. Unfortunately for them with the demise of two clubs professionals valued them down fairly drastically. This means all clubs are in that aspect over valued. This at a time when most are in deep doo-doo.
CVC has a 27% share so just over a quarter of all money gained goes off to an organisation that seems to do diddly squat.
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Taking the ?9m value at face value that would mean a total value of 13 x 9 = ?117
Assuming that is now spread across the remaining 11 teams that gives a new value of ?117/11 =?10.66m.
So yes, ?13 to ?14m does look a bit high and it?s hard to see that valuation washing with auditors.
If that total value is spread across 8 teams it?s ?14.5m.
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CVC has a 27% share so just over a quarter of all money gained goes off to an organisation that seems to do diddly squat.
well this is what they said they would do in 2020:
Our goal is to use our business expertise to help rugby improve its commercial revenues ? to achieve its full potential ? and provide more money to reinvest back into the sport.
That's going well then!!
To be fair they did state it would take 10 years....
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What happens to shares of TV revenue if a team with no P shares operates in the Prem? Surely no team would agree to play in a live televised game without receiving some payment for it - P shares or not.
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What happens to shares of TV revenue if a team with no P shares operates in the Prem? Surely no team would agree to play in a live televised game without receiving some payment for it - P shares or not.
If you happen to get into the Premiership you have to play by their rules. If you do not pay THEIR market rate for a P Share you get no TV money. The PRL (and CVC now) agree the TV deal so you have to lump it. The other clubs and CVC share the money out.