Premiership financial issues

[FKAS]

Rumours among bondholders that Wasps will be proposing a CVA (a legally binding payment plan) soon. If that doesn't go through it'll be Administration

Which means what? Expelled from the league structure and build back up from the bottom?
12 man premiership (a good thing - but is it too late to re-write the fixture list to avoid clubs having 4 fallow weekends?), and an entire club's worth of talent suddenly jobless, with no room in the salary cap for anyone to take them on?

Would that lead to an increase in the cap for everyone else? would that be allowing next year's increase (?) to come a year early, or "just" divide the £6.4M+ marquee by 12 to allow redistribution of talent? And how many cubs could afford to pay the wages of that extra, without having budgeted for it in advance (probably ruling out Worcester and Newcastle, maybe also LIrish, Sale and maybe anyone without a sugar daddy)?

Shotgun for Alfie Barbeary!

Puja

I was thinking Jack Willis more for Tigers, get him and Reffell rotating at openside. If we hadn't already acquired Cronin I'd have said West as well, he's a good solid prop coming into his prime years.

[Puja]

Which means what? Expelled from the league structure and build back up from the bottom?
12 man premiership (a good thing - but is it too late to re-write the fixture list to avoid clubs having 4 fallow weekends?), and an entire club's worth of talent suddenly jobless, with no room in the salary cap for anyone to take them on?

Would that lead to an increase in the cap for everyone else? would that be allowing next year's increase (?) to come a year early, or "just" divide the £6.4M+ marquee by 12 to allow redistribution of talent? And how many cubs could afford to pay the wages of that extra, without having budgeted for it in advance (probably ruling out Worcester and Newcastle, maybe also LIrish, Sale and maybe anyone without a sugar daddy)?

Shotgun for Alfie Barbeary!

Puja

I was thinking Jack Willis more for Tigers, get him and Reffell rotating at openside. If we hadn't already acquired Cronin I'd have said West as well, he's a good solid prop coming into his prime years.

Actually, that's a better call. Let's go with JWillis instead.

Seriously speaking, I can't see the RFU letting Wasps fail. They're too big - in terms of brand, supporters, history, as well as the assets of the stadium/training ground/youth systems - and they'd surely step in to underwrite them, especially since, with the asset of the stadium and the cashflows that it can produce in non-COVID times, this financial stress is a temporary situation.

Puja

[FKAS]

Shotgun for Alfie Barbeary!

Puja

I was thinking Jack Willis more for Tigers, get him and Reffell rotating at openside. If we hadn't already acquired Cronin I'd have said West as well, he's a good solid prop coming into his prime years.

Actually, that's a better call. Let's go with JWillis instead.

Seriously speaking, I can't see the RFU letting Wasps fail. They're too big - in terms of brand, supporters, history, as well as the assets of the stadium/training ground/youth systems - and they'd surely step in to underwrite them, especially since, with the asset of the stadium and the cashflows that it can produce in non-COVID times, this financial stress is a temporary situation.

Puja

£35m isn't pocket change though. That's a serious financial commitment, it might only be there to get a refinancing deal over the line but Wasps have had a tendency to lurch from one financial crisis to another. Not a surefire bet.

[Puja]

I was thinking Jack Willis more for Tigers, get him and Reffell rotating at openside. If we hadn't already acquired Cronin I'd have said West as well, he's a good solid prop coming into his prime years.

Actually, that's a better call. Let's go with JWillis instead.

Seriously speaking, I can't see the RFU letting Wasps fail. They're too big - in terms of brand, supporters, history, as well as the assets of the stadium/training ground/youth systems - and they'd surely step in to underwrite them, especially since, with the asset of the stadium and the cashflows that it can produce in non-COVID times, this financial stress is a temporary situation.

Puja

£35m isn't pocket change though. That's a serious financial commitment, it might only be there to get a refinancing deal over the line but Wasps have had a tendency to lurch from one financial crisis to another. Not a surefire bet.

They wouldn't need to actually provide £35m though, just secure the line of credit for it. That'd be a cakewalk for an organisation with both the resources and personal connections of the RFU.

Puja

[FKAS]

Actually, that's a better call. Let's go with JWillis instead.

Seriously speaking, I can't see the RFU letting Wasps fail. They're too big - in terms of brand, supporters, history, as well as the assets of the stadium/training ground/youth systems - and they'd surely step in to underwrite them, especially since, with the asset of the stadium and the cashflows that it can produce in non-COVID times, this financial stress is a temporary situation.

Puja

£35m isn't pocket change though. That's a serious financial commitment, it might only be there to get a refinancing deal over the line but Wasps have had a tendency to lurch from one financial crisis to another. Not a surefire bet.

They wouldn't need to actually provide £35m though, just secure the line of credit for it. That'd be a cakewalk for an organisation with both the resources and personal connections of the RFU.

Puja

Yeah they'd be the guarantor. I was thinking that Wasps haven't been the most stable club over the last decade or two so that might be considered a bit risk for an stuffed shirt organisation like the RFU.

[Doorzetbornandbred]

Done.

Mod

Quadrophenia?

He won't reply he's off down Brighton Beach to have a scrap with some rockers.

Who are you?

[FKAS]

Quadrophenia?

He won't reply he's off down Brighton Beach to have a scrap with some rockers.

Who are you?

A Pinball Wizard.

[Banquo]

He won't reply he's off down Brighton Beach to have a scrap with some rockers.

Who are you?

A Pinball Wizard.

There has to be a twist..

[jimKRFC]

On the subject of Wasps, it seems that they don't own their training ground. Following taken from a Drunken wasps poster:

"It was owned by Richardson and Loxwood holdings. But it seems that Richardson sold his shares in the training ground on the day that the bonds were going to be de-listed, and going into default is that the Trustees of the bond holders have a charge on not only the long leasehold of the ground but also on the ‘P’ Share and all of the assets including the team, training ground etc.

On the 13th May after the bonds defaulted, effectively dealing in the assets over which the Trustees had a charge became impossible to do so without the Trustees consent. Richardson crucially was able to sell his shares before the default thus avoiding any restrictions in doing so after the
default."

Loxwood holdings is owned by Christopher Holland, non-exe director at Wasps. It also seems like some of the ground around the training ground is now subject to planning for development as retirement homes/appartments..

[pandion]

Stinks...

[FKAS]

Coventry City fans planning a "lawful and peaceful" protest at Wasps first game of the season. I think it clashes with a Cov City fixture Vs Birmingham so whichever bright spark has set that up is going to be attracting the type of people who are looking for trouble.

Various investors circling Coventry City as the club is available for purchase and potentially the ground as well. Simon Jordan one of the names banded about.

[fivepointer]

From the Telegraph -

Worcester Warriors have been hit by a winding-up petition from HM Revenue & Customs over an unpaid tax bill, Telegraph Sport can reveal.

The taxman is seeking the Premiership club’s liquidation at a court hearing that could take place within weeks unless the club settles the debt.

Worcester said: “Worcester Warriors, along with many other businesses and most sports clubs have found the past two years extremely challenging owing to the Covid-19 pandemic and the rise in the cost of living.

“We retained our staff but lost income during the various lockdowns during which the overwhelming majority of matches were played behind closed doors. We returned to normal operations 12 months ago carrying a tax liability to HMRC. From the outset, we have worked closely and openly with HMRC on a plan to clear these liabilities and a Time to Pay (TTP) arrangement has been in place.

“The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay outstanding tax owed to HMRC. A solution, which would secure the long-term future of the club, has been approved. Unfortunately, there have been unavoidable delays beyond the club’s control to the final tasks required to complete the funding.

“Having kept HMRC fully apprised of the situation we are disappointed that they have taken the decision to issue a winding-up petition. The club’s directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution.

“We have also been in communication with the Department for Digital, Culture, Media and Sport, Sport England, Premiership Rugby and the RFU [Rugby Football Union] regarding this matter.”

HMRC declined to comment.

News of the winding-up petition comes two months after Worcester were late paying their players’ May salaries. The club said at the time: “A short delay in paying a small number of players was caused by a short-term cashflow issue that has now been resolved.

“Warriors, like most major sports clubs and businesses, saw income streams severely affected during the various lockdowns caused by Covid-19.

“We appreciate with the war in Ukraine and rise in the cost of living these remain uncertain and challenging times for many. As a club and business we are very grateful to the support, understanding and loyalty of our bankers, suppliers, commercial partners, supporters and staff during this period.

“We will continue to diversify the range of activities at Sixways to generate more non-rugby matchday revenue. We are also working on plans for a major project to develop the whole Sixways site which we believe will secure the long-term future of Warriors as a sustainable Premiership rugby club.”

The following month, Worcester announced co-owner Colin Goldring had been deemed “fit and proper to own and be director of a sports club” after he was banned from working in the legal profession following a failed £8 million luxury car deal involving a foreign prince.

Goldring was also made to pay £13,000 in costs by a Solicitors Disciplinary Tribunal over something that took place when he was a trainee solicitor for a law firm in 2017. A dishonesty charge against him was dropped by the Solicitors Regulation Authority (SRA).

Worcester said afterwards: “All regulatory bodies expressed to Goldring that they were satisfied he was fit and proper to own and be director of a sports club.”

Goldring added: “The legal profession is rightly held to a high standard, and it is regrettable that failings were found at the firm I was working for as a trainee which impacted some work I did for a client. The outcome delivered by the SRA acknowledges the lack of appropriate supervision provided to me as a trainee solicitor.

“It cleared me of any allegations of dishonesty or lack of integrity and did not impose a fine or ban. The Agreed Outcome that I would not work for a law firm again without the SRA’s prior consent is fair and does not impact my current position.

“The outcome was agreed on the basis I had acted with honesty and integrity. I hold these values in the highest regard and am glad my name was cleared on both.

“I thank Worcester Warriors and the partners and sponsors I have spoken with for their continued confidence in me.”

Goldring and Worcester co-owner Jason Whittingham also own League One football club Morecambe.

Telegraph Sport has also been told Worcester took out a multi-million-pound loan last year under the Government’s Covid-19 Sports Winter Survival Package, in which £88m was made available to Premiership teams. A charge was placed on clubs in a bid to safeguard those long-term loans in the event they failed to repay them.

[Which Tyler]

That's... Not good.

Never piss off the tax man

[jimKRFC]

Can't imagine the HMRC have gone to this as a first resort, if they're been working with Worcester then it must be fairly well along the path to action...

[FKAS]

Can't imagine the HMRC have gone to this as a first resort, if they're been working with Worcester then it must be fairly well along the path to action...

HMRC are not the most competent or patient organisation going. They do tend to take any deference from pay plans seriously, warning from the debtor or not. Doesn't surprise me at all that they've gone straight to winding up petition from missed part of payment plan.

[I R Geech]

Coventry City fans planning a "lawful and peaceful" protest at Wasps first game of the season. I think it clashes with a Cov City fixture Vs Birmingham so whichever bright spark has set that up is going to be attracting the type of people who are looking for trouble.

Various investors circling Coventry City as the club is available for purchase and potentially the ground as well. Simon Jordan one of the names banded about.

It seems pretty clear (albeit from a Wasps point of view) that Cov have cocked up and only have themselves to blame, but their fans are having a difficult time accepting that. Should be fun.

[FKAS]

Coventry City fans planning a "lawful and peaceful" protest at Wasps first game of the season. I think it clashes with a Cov City fixture Vs Birmingham so whichever bright spark has set that up is going to be attracting the type of people who are looking for trouble.

Various investors circling Coventry City as the club is available for purchase and potentially the ground as well. Simon Jordan one of the names banded about.

It seems pretty clear (albeit from a Wasps point of view) that Cov have cocked up and only have themselves to blame, but their fans are having a difficult time accepting that. Should be fun.

I'm not sure either side is coming out looking great to be honest. It's pretty obvious Wasps have spent the summer earning cash through gigs and the Commonwealth Games and as such the pitch is trashed. Fair enough but they've not looked after their tenants even if their tenants wanted back in earlier than previously agreed.

Cov City are coming across as a bratty child who are only taking their toys back into their pram so they can't throw them back out again. They do seem intent on bullying Wasps through the media and through Cov City fans into doing what the Cov City board want.

[Raggs]

Agreement reached with ccfc and wasps. New artificial fibres being put in to help keep it in better shape.

[Danno]

Can't imagine the HMRC have gone to this as a first resort, if they're been working with Worcester then it must be fairly well along the path to action...

HMRC are not the most competent or patient organisation going. They do tend to take any deference from pay plans seriously, warning from the debtor or not. Doesn't surprise me at all that they've gone straight to winding up petition from missed part of payment plan.

It's usually an explicit condition of the TTP, together with no further arrears. A default on either term = stat demand and then a petition

[fivepointer]

HMRC zeroing in on Wasps too -

Wasps are being pursued by HM Revenue & Customs over an unpaid tax bill.

After Telegraph Sport revealed Worcester Warriors had been hit by a winding-up petition from HMRC, their midlands rivals were said to be another Premiership club being chased by the taxman.

Their chief executive, Stephen Vaughan, did not respond to repeated requests for comment, while HMRC declined to comment.

Unlike Worcester, HMRC is not currently seeking the liquidation of Wasps, whose owner, Derek Richardson, was forced to deny last week that the club was to enter administration amid suggestions to that effect on social media.

No Premiership club has gone bankrupt since 1999 but the coronavirus pandemic left some on the brink, with a Government bailout worth tens of millions of pounds seemingly not enough to ensure their survival.

Fears over Wasps’s future were raised in May after they announced a delay in repaying those to have invested in a £35 million bond scheme that helped bankroll their 2014 purchase of a 250-year lease on the Coventry Building Society Arena.

Those concerns were compounded the following month when they requested £13 million in public money from the West Midlands Combined Authority (WMCA) to help pay stadium costs.

The most recent set of accounts for Wasps Holdings, covering the year ending June 2021, showed it recorded a loss of £18.5 million over a two-year period and had net current liabilities of £54.7 million.

The bondholder debt was initially secured against the value of the stadium, which the accounts valued at £52.4 million.

Wasps are the only Premiership club whose Companies House filings do not include notification of a charge being issued against them for taking out a multi-million-pound loan under the Government’s Covid-19 Sports Winter Survival Package.

But Telegraph Sport has been told they did borrow money under the scheme and that, like other teams, their loan is a secured one.

At the weekend, Telegraph Sport revealed Wasps were facing possible legal action from Coventry City after their Coventry Building Society Arena tenants were forced to postpone a second home match this season over an “unsafe and unplayable” pitch.

On Wednesday, both clubs announced “extensive work” would take place on the playing surface this week and that a “six-figure investment” would be made into pitch improvements amid the postponement of a third Coventry home game this Saturday.

WMCA told Telegraph Sport Wasps’s request for public money was still under consideration, while Coventry City Council, which owns to freehold to the arena, said: “The city council, including through the chief executive and senior officers, has regular communication and dialogue with many businesses and this has been particularly important throughout the pandemic as the economic context has been incredibly challenging.

“Wasps have been one of these businesses.”

Worcester on Thursday night remained in dialogue with HMRC over its own unpaid bill, having previously said: “The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay outstanding tax owed to HMRC.

“A solution, which would secure the long-term future of the club, has been approved. Unfortunately, there have been unavoidable delays beyond the club’s control to the final tasks required to complete the funding.

“Having kept HMRC fully apprised of the situation, we are disappointed that they have taken the decision to issue a winding-up petition.”

[Timbo]

Strong rumours that Wuss are about to go into administration.

[Tigersman]

Rumoured Land Grab will be the most worrying thing

[Timbo]

Rumoured Land Grab will be the most worrying thing

Wasn’t it always the suspicion that these owners were more interested in the land surrounding the stadium than the rugby team?

[I R Geech]

Rumoured Land Grab will be the most worrying thing

Wasn’t it always the suspicion that these owners were more interested in the land surrounding the stadium than the rugby team?

Same thing happened at Richmond and London Scottish. As soon as the new owners realised that they couldn’t build flats on the Athletic ground they fucked off.

[Puja]

Bunfight for Fin Smith, Ted Hill, and Ollie Lawrence incoming.

Puja