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Wasps have encountered heavy criticism online after it emerged they have asked the West Midlands Combined Authority (WMCA) for £13million of public money as the financial strain builds on their stadium business. A story broken by the BBC claimed that no decision had yet been reached on the application for funding and that Wasps had not yet commented on why they had made the request.
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Shortly after acquiring a 250-year lease on the Coventry Building Society Arena, which was then known as the Ricoh Arena, Wasps launched a bond scheme in April 2015. Bondholders invested at least £2,000 each and most of the £35m raised was used to pay off previous debts, including a £13.4m loan from Coventry City Council and £10m of loans from Wasps owner Derek Richardson.
However, the Arena business has struggled financially and the latest set of filed accounts from November 2021 showed losses of about £18.5m over the past two years and net liabilities of £54.7m.
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It also recently emerged that Wasps delayed repaying their bondholders who should have been repaid last month only for the club to announce that the repayment date was pushed back until the end of June to allow additional time to finalise terms with HSBC to refinance that bond debt.
A statement at the time quoted Wasps CEO Stephen Vaughan: “We thank bondholders for their continued support and look forward to updating them further in due course.”
There's some great insight here from @DrDanPlumley who talks about the possible implications of Wasps' financial situation – and whether CCFC / Wasps could become business partners.
He also talks about whether Coventry City could end up owning the stadium.https://t.co/FAtfUZyDcA— Simon Gilbert (@TheSimonGilbert) June 16, 2022
Now that it has been revealed that Wasps have since requested access to £13m of public money, social media has been busy and most of the reaction has been negative towards the Gallagher Premiership club. One critic summed up the mood, tweeting: “I tell you what, as a local, if Wasps wanted to make themselves any more unpopular with the critics of them being based in Coventry (of which there are many) this is how you do it. A sizeable chunk of sports fans here never wanted them and now… well.”
I tell you what, as a local, if Wasps wanted to make themselves any more unpopular with the critics of them being based in Coventry (of which there there are many) this is how you do it.
A sizeable chunk of sports fans here never wanted them & now…well. pic.twitter.com/JlIuU4jzDN— Paul Wheeler (@paulwradio) June 16, 2022
https://twitter.com/ccfc_1987/status/1537685275912052737
I really can’t buy into the glee at Wasps financial difficulties ??
They’ve invested into Coventry. They’ve developed the non-matchday revenue streams at the CBS
Obv suffered thru Covid & if grants, low interest loans or handouts are available- any business should try to benefit— Coventry_Views2 (@Coventry_Views2) June 17, 2022
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Wasps have already received a "£100m community asset" on the cheap from Coventry City Council, why should they receive £13m of public money on top of that? #pusb https://t.co/sM18CZ1GS9
— Robert Smith (@ChalfontStRob) June 17, 2022
I really want Wasps to succeed in Coventry but this will wreck any chances of that happening.
— phil_lovely (@phil_lovely) June 17, 2022
Enjoyed reading that article from a heavily Coventry City biased reporter who famously dislikes Wasps and was very anti Wasps when reporting on the whole SISU issue. My point above still stands ??
— George H (@Me_George_H) June 17, 2022
But it was never going to work once the novelty had worn off , wasps shouldn’t be asking for tax payers funding after the way they treated Coventry city .
— Adam Warwick (@AdamWarwick86) June 17, 2022
https://twitter.com/PUSBradders/status/1537554870500306945
Remember the batsh*t idea in the early 2000’s of merging Bath and Bristol together to form an Avon County Rugby super team? That was a better idea than moving London Wasps to Coventry.
— Lucas Ward (@LucasWard_) June 16, 2022
Those who gleefully welcomed Wasps to Coventry must now be uncomfortably squirming. They were never welcome, they are not welcome and they will hopefully disappear into nothingness.
— Jimmy (@JimCan21) June 16, 2022
Good to see the Derek Richardson Coventry wasps Ponzi scheme went well for Derek Richardson and not those at the bottom of the Ponzi scheme, sorry not Ponzi scheme, bond holders. Yes bond holders that’s the term……
— Axe – King of Salford (@diamondgenuis) June 16, 2022
https://t.co/03dUT7wFYs
What a complete shitshow!! £58 mil in debt last accounts unable to re-pay bonds now asking for £13 million "public" money to bail them out. Not great decision now was it Ann Lucas & the rest of Coventry City Clowncil selling our ground to Wasps RFC #PUSB— Andy (Cosser) ?? ???????????? (@Zipper282) June 16, 2022
Coventry City fans showing how bitter and twisted they actually are….well quite a lot of them anyway.
Love how they obsess about Wasps.
— ???? ?????? (@jackthrelk) June 16, 2022
As in Coventry City? I don’t really know, but it does feel like the owners have been gambling on things not working out for Wasps, which looks like coming to fruition. Whether that might result in owning the stadium, I’m still not sure of.
— Sideways Sammy (@SideSammy) June 16, 2022
I’ve always felt that Coventry City fans have assumed the role of neglected kids in a toxic tug-of-war between two dreadful parents: Sisu and Coventry City Council.
I guess wasps are the dodgy guy who moves in, that the kids can’t stand ?— richardbingham (@2right3) June 16, 2022
Wasps asking for £13m of public money. That’s £13m from the public, many of whom don’t even want them in Coventry. The move was the wrong one from the very beginning.
— Worcester Faithful (@WorcsFaithful) June 16, 2022
