Wasps - the Richest club in the world

[goodNumber10]

Wasps are on course to be the richest club in the world within 2 years:

http://www.bbc.com/sport/0/rugby-union/32476299

I don't know how i feel about this, obliviously i want the club to be secure but half the appeal of Wasps was always that they did more with less... i was like that in the amateur days, and was like tht even when they were at Loftus Road.


Also the game against Tigers is set to be a sell out, 1000 left:

http://www.wasps.co.uk/news/article/2015/04/27/just-1-000-tickets-left-for-wasps-v-tigers

 

[TRF_Olyy]

Be interesting to know the split of fans, if it sells out.
I mean you get 21k at Welford Rd for a home game, and it's just down the road.

Wasps have done well advertising since moving to Cov though - we get a ton of adverts advertising their games on the local radio round here, and there's always ticket deals on, and offers to clubs (though most of this is turned down as all the clubs round here are very much Tigers through and through).

 

[LeinsterMan (NotTigsMan)]

From what I have heard it could be around 50% Leicester fans in the crowd in a fortnight. Maybe a little more.

 

[goodNumber10]

they had a crowd of over 16,000 for the Exeter game and 28,254 for the Irish game.

They are a way off matching Leicester, Saints and Sarries, but as first steps it's pretty amazing considering they only got 5000 at Wycombe.

 

[snoopy snoopy dog dog]

The turnaround in the club's fortunes is fantastic to see although obviously it would be better if the club stayed closer to home. Hopefully they can reclaim a position near the top of European club rugby.

What's the verdict of their fans since the new owner took control of the club?

 

[91jmay]

It isn't a huge rugby area but Birmingham where I live has billboards up for them (especially in the student area, lots of southern students from private schools will have heard of Wasps I would assume). Makes sense to spread game around country, as it is clustered in certain areas at the moment.

 

[ratsapprentice]

Oh yeah... moving from London to the Midlands really spreads things around! :lol:

 

[Peat]

Oh yeah... moving from London to the Midlands really spreads things around! :lol:

As noted at the time, Coventry lies in the middle of a triangle of three of England's biggest clubs. It seems like they're going to make it work, but yeah...

I believe London & the Home Counties accounts for 14 and a half million people. If anything, only 3 clubs leaves it a little under represented.

 

[ratsapprentice]

As noted at the time, Coventry lies in the middle of a triangle of three of England's biggest clubs. It seems like they're going to make it work, but yeah...

I believe London & the Home Counties accounts for 14 and a half million people. If anything, only 3 clubs leaves it a little under represented.

Not to mention all the cashish and women.

 

[91jmay]

As noted at the time, Coventry lies in the middle of a triangle of three of England's biggest clubs. It seems like they're going to make it work, but yeah...

I believe London & the Home Counties accounts for 14 and a half million people. If anything, only 3 clubs leaves it a little under represented.

Coventry is nearer West Midlands conurbation area, nearly 3 million people with no team, than Leicester which is more East Midlands (only 20 minutes longer drive than Cov but importantly train links much better from Brum). Saints/Gloucester both not worth considering easily an hour + to Saints and god knows how far long to Gloucester.

 

[j'nuh]

Explain like I'm 5, if it was this easy to raise £35m, why hasn't every club done what Wasps have done? What are the risks/negatives to doing this?

 

[stus768]

Exeter have done something similar. In fact not sure why the difference is. Exeters was 7% return over 7 years.

 

[Peat]

Explain like I'm 5, if it was this easy to raise £35m, why hasn't every club done what Wasps have done? What are the risks/negatives to doing this?

Basically they are buying £35m now at the cost of more than £35m over the next x years. That's the negative. I presume there's some collateral at stake if they can't.

I think the majority of Premiership clubs either don't money now at the cost of more money later; or view it as a risk too far with their cash flows; or have a sugar daddy and don't need to.

 

[stus768]

It's effectively a loan from people buying the shares. So the downside is they have to pay 6.5% on the loan every year and then pay the full amount back in 2022. They would be paying around 2.75m a year in interest on 35m.

Not sure what happens if the shares go up loads in value. Assume they would have to pay more.

 

[ratsapprentice]

They've bought the stadium then set up a Kickstarter appeal.

 

[goodNumber10]

Explain like I'm 5, if it was this easy to raise £35m, why hasn't every club done what Wasps have done? What are the risks/negatives to doing this?

other clubs don't have the assets to secure the bonds against.... the Ricoh arena has multiple income streams so they can sell assets/generate revenue to meet the yearly interest if needs be.

or at least that's kind of how i understand it.

- - - Updated - - -

They've bought the stadium then set up a Kickstarter appeal.

hahah!

 

[Raggs]

It's effectively a loan from people buying the shares. So the downside is they have to pay 6.5% on the loan every year and then pay the full amount back in 2022. They would be paying around 2.75m a year in interest on 35m.

Not sure what happens if the shares go up loads in value. Assume they would have to pay more.

They aren't shares. They're bonds. They will be worth the same amount you paid for them at the end (or less, but not more).

 

[goodNumber10]

They aren't shares. They're bonds. They will be worth the same amount you paid for them at the end (or less, but not more).

http://www.diffen.com/difference/Bond_vs_Stock

 

[LeinsterMan (NotTigsMan)]

Wasps showing the tigers game as a sell out now.

 

[snoopy snoopy dog dog]

I guess Wasps are gambling on TV rights going through the roof to pay for this fundraising drive. They're leveraging guaranteed money now against a potential future windfall.