Premiership financial issues

[jimKRFC]

Another story about Worcester not paying has popped up - https://www.worcesternews.co.uk/news/20 ... ietg6M7cv8

A poster on their board also talks about two other local companies not being paid as well. Coupled with a few of their players not getting paid on time, due to a sponsor paying late, it seems like there maybe issues at Worcester...

[Gloskarlos]

Can't imagine the lost revenue Glos will undoubtedly be claiming from the match cancellation will be helping much either.

[Mellsblue]

It’s been a financial basket case for years/ever. It’s no surprise.

[FKAS]

Propped up by a sugar daddy isn't it. It's only as wealthy as he is willing to put cash into it.

[Banquo]

Propped up by a sugar daddy isn't it. It's only as wealthy as he is willing to put cash into it.

Pretty much all clubs are/were (dependent on non rugby cash), bar Tigers. Duckworth has in fairness transformed 6 ways- I used to play there quite a lot and its a tad different now.

[Stom]

Propped up by a sugar daddy isn't it. It's only as wealthy as he is willing to put cash into it.

Pretty much all clubs are/were (dependent on non rugby cash), bar Tigers. Duckworth has in fairness transformed 6 ways- I used to play there quite a lot and its a tad different now.

Quins, too. Say what you want about Mark Evans, but he did a great job getting Quins self-sustainable--in the main.

[Banquo]

Propped up by a sugar daddy isn't it. It's only as wealthy as he is willing to put cash into it.

Pretty much all clubs are/were (dependent on non rugby cash), bar Tigers. Duckworth has in fairness transformed 6 ways- I used to play there quite a lot and its a tad different now.

Quins, too. Say what you want about Mark Evans, but he did a great job getting Quins self-sustainable--in the main.

did my RFU intermediate coaching with him, also iirc was my top coaches assessor. Could say plenty

Thought Quins still had a couple of sugar daddies/investors, but perhaps they just own the company.

[Mellsblue]

Pretty much all clubs are/were (dependent on non rugby cash), bar Tigers. Duckworth has in fairness transformed 6 ways- I used to play there quite a lot and its a tad different now.

Quins, too. Say what you want about Mark Evans, but he did a great job getting Quins self-sustainable--in the main.

did my RFU intermediate coaching with him, also iirc was my top coaches assessor. Could say plenty

Thought Quins still had a couple of sugar daddies/investors, but perhaps they just own the company.

I’ve a lot of time for Evans. IMO, he makes complete sense 99% of the time I’ve listened to him or read his stuff.

[fivepointer]

Wasps looking for a handout - https://www.bbc.co.uk/news/uk-england-c ... ampaign=64

Rugby club Wasps have asked for millions of pounds of public money as financial strain builds on their stadium business.

The West Midlands Combined Authority (WMCA) is considering a funding application for about £13m, the BBC has learned.

The authority stated "any formal submission for decision has not been reached".

Wasps have not yet commented on why an application for money has been made.

[Mellsblue]

I hear Buckinghamshire County Council has funding available.

[Raggs]

I can't imagine that the money can simply be used to pay off debts? There's been a long term plan for an additional hotel, maybe it's to fund that?

[jimKRFC]

Another Worcester one: https://www.worcesternews.co.uk/news/20 ... -warriors/

It seems like they have the money to pay their providers, they just don't seem to want to.

[Timbo]

If Wasps are so brassic, how did they find the £5m needed for their new training ground?

[Mellsblue]

If Wasps are so brassic, how did they find the £5m needed for their new training ground?

Iirc, the stadium is a separate financial entity to the club.

[jimKRFC]

Another Worcester story... https://www.worcesternews.co.uk/sport/2 ... y-raiders/

Seems that payment for fixtures played by other clubs at the ground were withheld. The slow drip of bad news coming from Worcester is pretty worrying.

[jimKRFC]

More bad news for Worcester, it seems the current owner has a bit of history with financial problems:

https://digitaleditions.telegraph.co.uk ... rticle/NaN

https://www.rugbynetwork.net/boards/rea ... 9,17191145

[jimKRFC]

Some more posts on Twitter, from a friend of several players, that Worcester haven't paid players again...



And the tweeter posted this on the sportsnetwork site:

"Can trust me on it being true. Came from one of the boys and I didn't post it for attention or for clout.

I did it to put pressure on the club to sort it out as there are players that haven't been paid on time for 4 months and it's unacceptable.

Believe what you want, JP, re fake news but I assure you the person that told me was directly affected.

Respect the boys. Pay them what their owed or admit were up spit creek."

Anyone know the latest on Wasps issues? I think they failed to pay the (overdue) bonds, but not totally up on their issues.

[FKAS]

Wasps bonds are due for payment but they don't have the money so are trying to refinance. All assets are secured against the bonds so that would be the ground and training facility. The bonds have been suspended from trading if I recall correctly which is not a good look on the club and might partially explain their issues refinancing.

[Danno]

Their auditors qualified last years accounts, saying that the whole house of cards is dependant on a refinance plus the ongoing generosity of Richardson.

Rumours that talks with HSBC to refinance them have fallen through, (and hinted at in Wasps' own statement) which if true means they will be looking at much more expensive terms than a mainstream lender would offer.

I can see administrators being tapped up sooner or later.

[Puja]

When I said I wanted the Premiership to reduce to 10 teams, this wasn't what I had in mind.

Puja

[FKAS]

Might be a sell the stadium to get some cash in type move on the horizon. Wasps average attendance is 50% of the Ricoh capacity and I believe they still gift a number of tickets to local grassroots clubs and schools. They could move and lease a smaller ground in the local area of required. Wallsall or Kidderminster are possibly a bit small but a full house might generate more atmosphere.

[Mellsblue]

Wycombe Wanderers might be interested.

[Puja]

Might be a sell the stadium to get some cash in type move on the horizon. Wasps average attendance is 50% of the Ricoh capacity and I believe they still gift a number of tickets to local grassroots clubs and schools. They could move and lease a smaller ground in the local area of required. Wallsall or Kidderminster are possibly a bit small but a full house might generate more atmosphere.

That'd be a huge climb-down. They moved across the country, against the wishes of a lot of their fans and general opprobrium of the sporting community (as team moves are Just Not Done here in the UK), simply because they got the opportunity to get a 30k stadium at a bargain price (and because they were dying at Wycombe). As I recall, most rugby fans very grudgingly accepted the move because they needed it to survive and because it was such a good venue. To then sell that stadium and downsize after just 8 years would be a hell of a thing - would they even stay in the West Midlands, surrounded by three other clubs, or would they move south again? Why would they even need to stay in the local area - what real roots do they have there? What is the point of a club that doesn't have a place?

Puja

[Raggs]

That they're reliant on Richardson isn't really different to almost any other club. It is worrying that they don't seem to be able to get the refinancing across the line though. Richardson doesn't have the funds to simply cover the bond. However, if we can get a long term finance sorted, wasps will hopefully be back to some sort of stability.

They've not been giving away free tickets (maybe here and there, but nothing like before) for at least a couple of seasons now I believe.

[FKAS]

Puja, if they were to move I doubt they'd move away from the new training base in Warwickshire.

Agreed Raggs, most if not all Prem Clubs are reliant to some degree on their owners being happy to supply either funding or guarantees on financing arrangements. The bonds are worth £35m, not many Prem owners have got the kind of cash to cover that. The type of financing they may have to accept in the short term might not be pleasant but could give them time to secure better long term financing.