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2018 Accounts
Posted by: Ardenwasp (IP Logged)
Date: 12 November, 2018 08:57

For those that are interested 2018 Wasps accounts have been posted on the offy at:

[www.wasps.co.uk]

Re: 2018 Accounts
Posted by: Bracken&Macken (IP Logged)
Date: 12 November, 2018 09:21

ouch.

Re: 2018 Accounts
Posted by: RossM (IP Logged)
Date: 12 November, 2018 09:51

I'm interested, but they are double dutch to me. Please would it be possible that someone qualified could come up with a brief synopsis for the layman? I'm afraid 'ouch' doesn't cut it.

Thanks.

Re: 2018 Accounts
Posted by: Dgwasp (IP Logged)
Date: 12 November, 2018 09:53

All of a sudden the disappointing results seem to be the tip of the iceberg. This is a fair step backwards from what had been improving figures year on year... A big thank you to Derek for continuing to finance the club.

Re: 2018 Accounts
Posted by: kentwasp1 (IP Logged)
Date: 12 November, 2018 10:57

I've had a quick look and it is really really grim reading.

So many bad figures - revenue down, pre tax loss of 10m (double last year), 2m "restatements" from errors last year, 86m of debt covered mainly by 70m stadium asset. Cash outflows, 50m accumulated losses. Breach of covenant on bonds in the year
If this was a normal business it would be closed down or sold/ refinanced
The auditors report and note 2 in the accounts confirm the business is reliant on the continued support of Derek. Or it would fail the "going concern" basis.
Downside of taking on this huge stadium is it is an expensive toy to play with and run

Re: 2018 Accounts
Posted by: doctorkmt1 (IP Logged)
Date: 12 November, 2018 11:00

There must be some mismanagement here? Big crowds, conference facilities, concerts, casino etc.....
Worrying

Re: 2018 Accounts
Posted by: alcovwasp (IP Logged)
Date: 12 November, 2018 11:12

Going forward though, Spice Girls (extra night added) and Bon Jovi at the arena, snooker back there, Elite League and commonwealth netball there again. Plenty of room to improve those numbers...

Re: 2018 Accounts
Posted by: Dgwasp (IP Logged)
Date: 12 November, 2018 11:26

The headlines for me are that operating costs have jumped up by 4m and that Derek is now owed 18m. Given that revenue has remained pretty much static I can't really see what has created such a leap in running costs.

Re: 2018 Accounts
Posted by: Westy68 (IP Logged)
Date: 12 November, 2018 11:30

If this continues I wonder where Wasps will move to next.

Not good figures at all, very worrying

Re: 2018 Accounts
Posted by: Gaz (IP Logged)
Date: 12 November, 2018 11:36

Can't be sustainable. I have no idea on how deep or willing DRs pockets are but I didn't think he was in Bruce Craig territory.

I haven't had a look yet, but sounds worrying.

Re: 2018 Accounts
Posted by: samlee99 (IP Logged)
Date: 12 November, 2018 11:50

Quote:
Westy68
If this continues I wonder where Wasps will move to next.
Not good figures at all, very worrying

I hear Wycombe is very nice.

Re: 2018 Accounts
Posted by: Vespulavulgaris (IP Logged)
Date: 12 November, 2018 12:44

Quote:
samlee99
Quote:
Westy68
If this continues I wonder where Wasps will move to next.
Not good figures at all, very worrying

I hear Wycombe is very nice.

How about Northampton?

Re: 2018 Accounts
Posted by: kentwasp1 (IP Logged)
Date: 12 November, 2018 12:57

Tunbridge Wells or failing that, London

Re: 2018 Accounts
Posted by: Heathen (IP Logged)
Date: 12 November, 2018 13:44

Derek's pockets :

[www.independent.ie]

Re: 2018 Accounts
Posted by: backdoc (IP Logged)
Date: 12 November, 2018 14:00

Sounds a bit like Saracens without the stadium as collateral.

Re: 2018 Accounts
Posted by: jamestaylor002 (IP Logged)
Date: 12 November, 2018 14:18

I'm not really that familiar with the business and finance world. I have read previous comments showing losses/debts etc.

What does this mean in real terms? Will this result in Wasps moving on from the Midlands? It would seem an expensive experiment if that were the case. Particularly with the training ground development.

Re: 2018 Accounts
Posted by: kentwasp1 (IP Logged)
Date: 12 November, 2018 14:51

It means Wasps have a business model that is not currently working and the club is in financial trouble. Not terminal but held together by one individual who has lent the club over a quarter of his personal fortune. The rugby business model is based on success and in particular getting into play-off stages - a reason the club quotes as the revenue fall off in these accounts. The bonds (35 million more borrowing) have lost value and bondholders had to do the club a favour ignoring the breach of covenant with the financial irregularities. Or they would have called them in and if no new bond could be issued the dear old Ricoh would have to be flogged off, and Derek loses his shirt.
All very precarious and bit like the Casino, it's a huge gamble by the club taking on the empire that is the Ricoh. If they can't get it to work, plan C territory.



Edited 1 time(s). Last edit at 12/11/2018 14:53 by kentwasp1.

Re: 2018 Accounts
Posted by: Heathen (IP Logged)
Date: 12 November, 2018 15:14

Revenue is king and that looks OK.

Re: 2018 Accounts
Posted by: Rifleman Harris (IP Logged)
Date: 12 November, 2018 15:17

I wonder what effect SISU have had in this, and what the improvement will be once that is sorted in terms of accommodating the football club. Also once that is done and dusted the naming rights may be worked out too.

Conversely SISU may well see this as vindication of their tactics and will now head off to the Civil Courts to continue distressing Wasps (which appears to be working nicely for them).

Re: 2018 Accounts
Posted by: neils (IP Logged)
Date: 12 November, 2018 15:30

I think the latter is most likely. Their strategy to distress will be seen to be working in their eyes. Sensible thing to do now is get rid of SISU from the "building". If CCFC come back with a new owner then talk but until then get rid.

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