Rumours

Hall of Famer
Posts: 2124

Re: Rumours

26 Mar 2020 11:38 am:

Gb83 wrote:On the latest House of Rugby Pod Mike Tindall said that of rugby doesn’t resume this season then he expects at least one club will go bust, possibly 2.

I wonder who he has in mind? My thoughts are in no particular order:

Wasps
Irish
Worcester
Sarries
Gloucester


Purely talking about GP clubs, you'd have to think Wasps must be clinging on by a thread. Their T/O is significantly more than the other GP clubs, due to the hotel and casino. They will both be closed for the foreseeable.

Their business model, built on debt, relies on profit to facilitate payment of the coupons and repayment of the bond on 13/05/2022.

The current value of the bond is £0.48p per share, down from it's issuance at £1.00 nearly 5 years ago. If I had money tied up in that investment, I'd be liquidating it pretty quickly.

https://www.londonstockexchange.com/exc ... PUKCP.html

I don't think any other GP clubs are at risk, unless the owners pull the plug. I can't see that happening though.
"Remember that Rugby is team game; all 14 of you make sure that you pass the ball to Jonah"
shawnsheep

Re: Rumours

26 Mar 2020 11:46 am:

I don't think any other GP clubs are at risk, unless the owners pull the plug. I can't see that happening though.


I am not so sure, my feeling is that some owners may see it as a way out of ever increasing losses, and I would include Glaws in that thinking due to their lack of signings, and information on anything really.
Vice-Captain
Posts: 430
Location: Llanharan

Re: Rumours

26 Mar 2020 11:56 am:

OMG. Should I stop my DD for e wide and I
Hall of Famer
Posts: 2290

Re: Rumours

26 Mar 2020 11:58 am:

shawnsheep wrote:
I don't think any other GP clubs are at risk, unless the owners pull the plug. I can't see that happening though.


I am not so sure, my feeling is that some owners may see it as a way out of ever increasing losses, and I would include Glaws in that thinking due to their lack of signings, and information on anything really.


Can’t really blame them either, rugby Wasn’t affordable for most clubs pre Covid.
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Location: Dursley - At the heart of the County

Re: Rumours

26 Mar 2020 12:08 pm:

Wasps and Worcester would be my bets - followed by GRFC.

The 2 W's are effectively property companies majority-owned by non-rugby people.
Nothing wrong with free speech or having an opinion - as long as it matches mine !!
Tj36

Re: Rumours

26 Mar 2020 12:34 pm:

J.May to Sale Sharks..
Hall of Famer
Posts: 2000

Re: Rumours

26 Mar 2020 13:26 pm:

I don't think Irish will go bust - hardly anyone watches them when there isn't a lockdown, so for them its situation normal less, say, 500 spectators who pay on the the day.
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Posts: 3398

Re: Rumours

26 Mar 2020 14:09 pm:

I wonder if they will play these games behind closed doors in May.
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Posts: 1183
Location: Worcester

Re: Rumours

26 Mar 2020 14:37 pm:

If there is no income for six months I would expect that most clubs ( and business's for that matter ) would go under.
At least Worcester have the land , albeit probaly at an unknown value . They could liquidate the company and re-start at a much lower cost base, including players. If you don't own your ground then it is a different matter. We also have the amatuer club to support if the worst comes to the worst.
Hall of Famer
Posts: 3370

Re: Rumours

26 Mar 2020 16:30 pm:

No income? Apart from RFU funds and CVC payment, that is.
I’ve only ever been wrong once; l thought l was wrong, but l was wrong!
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