Alls not so well in Cov!

Re: Alls not so well in Cov!

chumba 20 Mar 2017 09:44 am said..

Nothing much to see here. It always seemed like a speculative loan, and refinancing is a fact of corporate bonds. The only real negative for them is paying £2.3m a year in interest - even accounting for any reduction in their tax bills (not likely given historic recent losses) that is a huge proportion of their £17m turnover.

It looks like Wasps on banking on ever-increasing turnover, and inflation reducing the relative value of the debt over time. By 2022 they could well be turning over twice what they are now so will be able to pay down a decent chunk of the debt, and then refinance say £20m.
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Re: Alls not so well in Cov!

Baz 20 Mar 2017 10:22 am said..

In simplistic form it said Wasps owe over 30 million and are losing over a million a year. Now there are some very clever people out there who can explain debt in business and how it can be good but the fact remains that at the moment they are not eating into the debt but going the other way. The maths is quite easy.In addition, if it was that good why do so many businesses go bust and in to liquidation?

The French clubs are now talking about unsustainable debt. As much as someone might think that the 'Wasps tiger' is relentless, my opinion is that it won't be long before we see a Premiership club go to the wall. Plenty of football clubs including Coventry City and Portsmouth have fallen from the top tier. Rugby already has a few casualties. Certainly room for one more?
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Re: Alls not so well in Cov!

King Prawn Bhuna 20 Mar 2017 10:34 am said..

Did they ever plan to repay it in a short term, of course not, it's a longer term plan with assets that easily cover the debt. They have actually increased their indebtedness over the period and making a loss but are increasing their turnover, which allows them to continue to service repayments on the debt. I'm sure they are hoping from some TV money for a good run in Europe and extending the domestic TV money with playoffs and a big Twickenham finale to jolly the coffers along.

Caution and warnings yes....problems and going tothe wall...no.

Sounds like a bit of stirring within the Pro-Footy lobby within the Cov Telegraph, diverting attention from the plight of their beloved Cov City.....Cue Derek Richardson wearing a Make Wasps Great Again baseball cap and screaming Fake News to anyone who'll listen.

Hopefully might even make it along to cheer on Forest Green or Cheltenham next season.... :D :D :D
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Re: Alls not so well in Cov!

ROLLO 20 Mar 2017 10:47 am said..

Increasing turnover means nothing it is the bottom line in the long run that matters and if you don't make profit you cant pay anything back.
I was told every early in this process that Wasps was a 5/6 year project with a sale at the end of it.
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Re: Alls not so well in Cov!

King Prawn Bhuna 20 Mar 2017 11:35 am said..

ROLLO wrote:Increasing turnover means nothing it is the bottom line in the long run that matters and if you don't make profit you cant pay anything back.
I was told every early in this process that Wasps was a 5/6 year project with a sale at the end of it.


Not far out....there's an old adage

Turnover is vanity, profit is sanity but cash is reality
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Re: Alls not so well in Cov!

Pest 20 Mar 2017 11:51 am said..

I don't think anyone expected them to not refinance.

If it's a 5 or 6 year thing, taking us from 7th to the top, saving the future and setting us up for future success, then good luck and thank you Derek Richardson.
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Re: Alls not so well in Cov!

King Prawn Bhuna 20 Mar 2017 12:06 pm said..

Pest wrote:I don't think anyone expected them to not refinance.

If it's a 5 or 6 year thing, taking us from 7th to the top, saving the future and setting us up for future success, then good luck and thank you Derek Richardson.


...and sale of the Ricoh would pay off the debts...and leave a couple of quid in the bank. But honestly don't think that's going to happen.
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Re: Alls not so well in Cov!

RTS2 20 Mar 2017 12:35 pm said..

Some fake news ; I like it ;)

Wasps are not going out of business even if the debt rises to £50 m over the next 10 seasons.
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Re: Alls not so well in Cov!

covglaws 20 Mar 2017 12:54 pm said..

When I saw the title of the thread I thought news had got out about the plumbing problem under my sink. :lol:

As to the matter in hand, non- story, the Cov Telegraph do have an agenda here, more related to the terminal decline of Cov City. This was always a long term plan and we won't know for 5 years or more if it's going tits up. My hunch is that they will make it work (said through gritted teeth)
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