Wasps set to be a force again?

cp

Anyone been following Wasps adventures in Coventry?

I was convinced this move would flop but it's been extraordinarily successful so far. They had 32000 fans for the game against Leicester last weekend and have been averaging about 20k in their first 6/7 games..

The Ricoh arena has a hotel, casino and a very large conference centre attached and according to the club, about 2/3 of their revenue going forward will be from non-rugby activities. If they're able to maintain the early momentum, the could be about to jump to the top of European money charts.

What do people think? Should we be worried? I'd say Nigel Wray is kicking himself

errlloyd

I linked this is another thread.

Wasps did a big bond issue last week to raise capital for various things. All the information about the offering can be read here.

https://www.fixedincomeinvestor.co.uk/x/mem_barclays2/analysis.html?type=Bond%20of%20the%20Week&cat=Analysis%20%26%20Comment

The interesting bit is this bit.

Taking both Wasps and the arena together, revenue by segment is as follows:

Conference & Exhibition 22%
Central income 18%
Property rental & services 16%
Arena sponsorship 16%
Rugby match day 13%
Hotel 6%
Rugby sponsorship 4%
Concerts 2%
Other 1%

Now by my maths rugby is only gonna be 17% of their income. Which is pretty insane.

cp

errlloyd wrote: »

I linked this is another thread.

Wasps did a big bond issue last week to raise capital for various things. All the information about the offering can be read here.

https://www.fixedincomeinvestor.co.uk/x/mem_barclays2/analysis.html?type=Bond%20of%20the%20Week&cat=Analysis%20%26%20Comment

The interesting bit is this bit.



Now by my maths rugby is only gonna be 17% of their income. Which is pretty insane.

Very interesting!

Isn't the Toulouse model similar- deriving a fair amount of their revenue from non-rugby activities including a Michelin star restauraunt, etc, or did I imagine that?

errlloyd

cp wrote: »

Very interesting!

Isn't the Toulouse model similar- deriving a fair amount of their revenue from non-rugby activities including a Michelin star restauraunt, etc, or did I imagine that?

I think Toulose are similar, but to a lesser extent. Although those Wasps figures are very optimistic. The other way to look at it is saying that the Ricoh Arena should make 83% of that revenue on it's own, they got it cheap because it was failing

thomond2006

errlloyd wrote: »

Now by my maths rugby is only gonna be 17% of their income. Which is pretty insane.

I'm sure Munster had a similar outlook when Thomond Park was built. However the non-rugby income probably dried up with the crash.

The Lost Sheep

thomond2006 wrote: »

I'm sure Munster had a similar outlook when Thomond Park was built. However the non-rugby income probably dried up with the crash.

Did they? Munster have nothing compared to the facilities Wasps have with their move. Thomond is set up for great co-operation with LIT and making money off the students there for usage etc but they don't bother with it...

cp

thomond2006 wrote: »

I'm sure Munster had a similar outlook when Thomond Park was built. However the non-rugby income probably dried up with the crash.

Thomond doesn't have anything like the conferencing facilities the Ricoh has.

Wasps bought it cheap primarily because Coventry City fc had spent the last year or so trying to drive the previous owners into bankruptcy. I think they have a real gem on their hands.

Digifriendly

Sadly rugby is becoming more like soccer by the minute and this is just another example of it. Whoever has the most cash wins. Watch Wasps over the next few seasons if you doubt this.