Should we be worried by this?

[Shugs]

That’s bang on for me VV. The WMCA thing is dredged up by those desperate to write a story but with no story to write. I expect if you looked at all the bids that have gone into the WMCA post pandemic they would be many and varied.

[Sussex Wasp]

Er, yes. Very.

It doesn't matter how brilliant our relationships are with local powers, if we simply have an unsustainable business model. You have to be an ostrich to say £10m losses last few years even before pandemic is a business that can continue in that form.

It does impact the bond, as these guys see it:
https://uk.advfn.com/stock-market/london/wasps-22-WAS1/share-chat

Then the fact the bond repayment defaulted on May 13, when Wasps have had 7 years to plan for it.

They simply don't have the money, and this is linked to try and get some liquidity in the business to push thrugh the HSBC financing, likely a mortage or stadium sale, which may be tricky as apparently is a 250 year lease.

Then the lack of communication from the "powers that be". They may be confident but if so, give a statement explaining how a business losing £10m a year, with dwindling stadium attendance an revenues, can be turned round in such a way to either attract a new lender, or even be able to repay it . They have to make a statement now.

The BBC reporter seems to be shot down, simply because he has other interests. But he is bringimng stuff out, even if incomplete, that Wasps management could have headed off at the pass if they a) have a plan and b) were willing to share it with the wider club.

Yes I am worried and have been for years. If you had a business with losses over £50m since the Cventry move, now owing Compass, Derek, Bond holders and other creditors more than the stadium worth, why would you not.

It seems a general mass denial instead.

Hope I'm wrong.

[Vespula Vulgaris]

Er, yes. Very.

It doesn't matter how brilliant our relationships are with local powers, if we simply have an unsustainable business model. You have to be an ostrich to say £10m losses last few years even before pandemic is a business that can continue in that form.

It does impact the bond, as these guys see it:
https://uk.advfn.com/stock-market/london/wasps-22-WAS1/share-chat

Then the fact the bond repayment defaulted on May 13, when Wasps have had 7 years to plan for it.

They simply don't have the money, and this is linked to try and get some liquidity in the business to push thrugh the HSBC financing, likely a mortage or stadium sale, which may be tricky as apparently is a 250 year lease.

Then the lack of communication from the "powers that be". They may be confident but if so, give a statement explaining how a business losing £10m a year, with dwindling stadium attendance an revenues, can be turned round in such a way to either attract a new lender, or even be able to repay it . They have to make a statement now.

The BBC reporter seems to be shot down, simply because he has other interests. But he is bringimng stuff out, even if incomplete, that Wasps management could have headed off at the pass if they a) have a plan and b) were willing to share it with the wider club.

Yes I am worried and have been for years. If you had a business with losses over £50m since the Cventry move, now owing Compass, Derek, Bond holders and other creditors more than the stadium worth, why would you not.

It seems a general mass denial instead.

Hope I'm wrong.

I'd be very surprised if anyone, Derek included, ever expected the rugby to be a profit making venture.

The goal has to be for the stadium and surrounding money making ventures - hotels, bars, casino etc to make enough money to allow the rugby to continue.

Yes it has been losing money, but it's tricky for a hotel to make money when the government forces them to close. That is changing.

Derek is a canny operator and didn't get to the point where he could afford to buy Wasps by making stupid decisions with money.

Show me a premiership team that is making a profit and I'll show you a Chairman with a very creative accountancy team.

[Shugs]

Not a mass denial. Just not panicking on the basis we’ve applied for some funding along with many, many others.

[Sussex Wasp]

Not true. The whole shebang loses money. Casino, Hotel, Conference centre, Stadium. Hand over fist. Completely the opposite of the prospectus forecasts. The plan was also not for the rugby to be subsidised by the others, but in fact a net contributer. Have a look. Everything was rosy and all were to make money.
Basically the whole business plan has come apart at the seams, and the entire edifice loses so much money every year it dwarfs any premiership side. No premiership side has accumulated almost £60m losses in 7 years.
The bond architect was Nick Eastwood. We have him in place still in the "powers that be" alongside many other chiefs, who now need to deliver the vision, and the plan to reverse years of financial horrors. Unless you have a majic wand - if they could have by now they would have - so what is the plan?
I met Eastwood in a bar in Dublin after our Euro quarter final hammering a few years ago. Very unimpressive and my dad always said never trust a man who wears slip on shoes. My son and I noticed them, and the nylon trousers !
It gives me no pleasure to highight the realism, but we are in shit creek and if we get out of this then I'm buying Eastwood a large dinner, as I eat his slip on's.
But time for the man and his team to talk to us.

[Vespula Vulgaris]

Not true. The whole shebang loses money. Casino, Hotel, Conference centre, Stadium. Hand over fist. Completely the opposite of the prospectus forecasts. The plan was also not for the rugby to be subsidised by the others, but in fact a net contributer. Have a look. Everything was rosy and all were to make money.
Basically the whole business plan has come apart at the seams, and the entire edifice loses so much money every year it dwarfs any premiership side. No premiership side has accumulated almost £60m losses in 7 years.
The bond architect was Nick Eastwood. We have him in place still in the "powers that be" alongside many other chiefs, who now need to deliver the vision, and the plan to reverse years of financial horrors. Unless you have a majic wand - if they could have by now they would have - so what is the plan?
I met Eastwood in a bar in Dublin after our Euro quarter final hammering a few years ago. Very unimpressive and my dad always said never trust a man who wears slip on shoes. My son and I noticed them, and the nylon trousers !
It gives me no pleasure to highight the realism, but we are in shit creek and if we get out of this then I'm buying Eastwood a large dinner, as I eat his slip on's.
But time for the man and his team to talk to us.

Show me some accounts that don't have Covid losses in them and I might agree.

Judging the truthfulness of a thrown together article today on the basis of one man's shoes several years ago is a little crazy.

[Neils]

Many newish posters on here today.

[Come on Dai Young]

Many newish posters on here today.

[jamestaylor002]

Looks like I will be staying away from social media for a bit then to save me getting annoyed at people basking in this news.

[Lwasp]

But time for the man and his team to talk to us.

Just what is it you think you are entitled to know? The rugby club and assets are privately owned. Professional sport in this country, lead as always by our round ball cousins, is the very model of financial basket case. There is no reason why things cannot continue as they have been as long as someone is willing to underwrite those losses.

As has been pointed out a number of times on this forum there are publicly traded instruments (in this case bonds) secured against the assets of the business. For that reason hands are somewhat tied about what can be said to whom by when. You might not like it, but it is the way things are.

As fans of the club, yes I believe our concern for the ongoing existence of our club should be raised by failure to refinance the bond on time. The announcement of that delay said all would be sorted by end June. If that happens then concern levels can fall, if that fails again then concern should continue to rise. Should we be concerned that every and all sources of available funding are being explored? Not really, if there's money to be had why shouldn't we apply?

[Heathen]

Interesting times.

My gutfeel FWIW.

The grant application is totally separate from anything connected to the refinancing. I fancy that CCC are actively involved in assisting Wasps cause in this.

The refinancing of the bond will be sorted in due time.

The keyboard warriors just love conjecture and speculation, especially if can be perceived as detrimental to Wassp.

We will be told when the time is right.

End of.

[Rossm]

Interesting times.

My gutfeel FWIW.

The grant application is totally separate from anything connected to the refinancing. I fancy that CCC are actively involved in assisting Wasps cause in this.

The refinancing of the bond will be sorted in due time.

The keyboard warriors just love conjecture and speculation, especially if can be perceived as detrimental to Wassp.

We will be told when the time is right.

End of.

I quite agree Heathen.