CEO, expects to be richest club in the world.

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Kofi Annan
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CEO, expects to be richest club in the world.

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Wasps say they are on course to become the richest rugby club in the world after announcing their latest financial initiative.
On Monday they will become the first sports club to launch a retail bond listed on the London Stock Exchange, which is expected to raise up to £35m.
That means Wasps are set to pass French giants Toulouse in terms of revenue.
"We expect to be in that position either at end of this season or next season," said Wasps' David Armstrong.
The big rise in revenue is a result of Wasps, who beat Exeter on Sunday to consolidate sixth place in the Premiership, buying the Ricoh Arena, in Coventry, and moving from High Wycombe to play in the Midlands.
Speaking to BBC Radio 5 live, the Wasps chief executive added: "We were previously the second-lowest revenue-generating club in Premiership rugby. We are now the second highest in Europe.
Ricoh Arena
The Ricoh has a 32,000-seater stadium as well as facilities including a casino and hotel
"In terms of size of revenue, we will overtake Toulouse in the next few months. We are in a very strong position financially."
Armstrong says the bond will "restructure the balance sheet" and "put the club on a much firmer financial footing going forward", while "a large part" of the money raised will be spent on the rugby side of the business.
Wasps are on the verge of signing another big money "marquee" player, as well as investing in their backroom and conditioning staff.
"It's about pushing forward, contending in the Premiership, contending in Europe. And we'll see how we get on," continued Armstrong.
"But certainly we are a club with ambitions to be at the top level both domestically and in Europe every season."
While most Premiership clubs rely on broadcast revenue for the bulk of their income, the range of facilities at the Ricoh Arena means Wasps are breaking the mould, according to Armstrong.
The Ricoh, also home of League One side Coventry City, includes a 32,600-seater stadium, a concert venue, a casino, two restaurants and a hotel.
"This is creating a new financial model in rugby," Armstrong added.
"The old model of either owning a purpose-built rugby stadium, or even being a tenant in somebody else's stadium, has now been superseded by what we've done.
"I'm sure lots of other clubs will look at that, and find their own ways to try and emulate that - there are some very strong clubs in England - but for now we have set the bar much higher."
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Russ
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Re: CEO, expects to be richest club in the world.

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4 guffaws
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mikerob
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Re: CEO, expects to be richest club in the world.

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Kofi Annan wrote: "We expect to be in that position either at end of this season or next season," said Wasps' David Armstrong.
Gusher Neilly wrote: "We expect to be in that position either at end of this season or next season," said former pupil of Campbell College David Armstrong.
Yup, their CEO is from Norn Iron...
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ColinM
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Re: CEO, expects to be richest club in the world.

Post by ColinM »

We should sign him
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mikerob
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Re: CEO, expects to be richest club in the world.

Post by mikerob »

ColinM wrote:We should sign him
I looked at his details on LinkedIn and in recent times he has only stayed in jobs for a couple of years so he seems to do restructuring/troubleshooting and is parachuted in to sort things out but doesn't stick around.

Whether Ulster needs that sort of CEO is a separate debate... :stir:
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Russ
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Re: CEO, expects to be richest club in the world.

Post by Russ »

Learnt his trade at Anderson - the joke outfit behind Enron

Basically he is a restructuring consultant
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BaggyTrousers
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Re: CEO, expects to be richest club in the world.

Post by BaggyTrousers »

mikerob wrote:
Kofi Annan wrote: "We expect to be in that position either at end of this season or next season," said Wasps' David Armstrong.
Gusher Neilly wrote: "We expect to be in that position either at end of this season or next season," said former pupil of Campbell College David Armstrong.
Yup, their CEO is from Norn Iron...
Did he play in a schools cup final?
NEVER MOVE ON. Years on, I cannot ever watch Ireland with anything but indifference, I continue to wish for the imminent death of Donal Spring, the FIRFUC's executioner of Wee Paddy & Wee Stu, and I hate the FIRFUCs with undiminished passion.
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LegsLikeSausages
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Re: CEO, expects to be richest club in the world.

Post by LegsLikeSausages »

mikerob wrote:
Kofi Annan wrote: "We expect to be in that position either at end of this season or next season," said Wasps' David Armstrong.
Gusher Neilly wrote: "We expect to be in that position either at end of this season or next season," said former pupil of Campbell College David Armstrong.
Yup, their CEO is from Norn Iron...
If he went to Campbell, Maths won't be his strong point.

Neither will English, Science, Languages, Geography, History.....

He may be a dab hand at woodwork though...
Colin0395
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Re: CEO, expects to be richest club in the world.

Post by Colin0395 »

They're getting there, apparently...
Wasps have taken little over a week to reach the £35m target they set for a bond issue which could make them the richest rugby club in the world.

The Premiership club, who moved their matchday base to Coventry's Ricoh Arena in December, launched the new retail bond on the Stock Exchange on 27 April.

But just 10 days later they have attracted £35m worth of new investment.

Wasps chief executive David Armstrong says they now have "a solid foundation for the long-term future of the club".

Wasps, who are still based during the week in west London at their traditional home at Acton, are now on course to pass French giants Toulouse in terms of revenue.

"We expect to be in that position either at the end of this season or next season," said Armstrong.

The big rise in revenue is a result of the long-standing London club moving from High Wycombe - their matchday home for a decade - to buy the Ricoh Arena, where they average attendances in excess of 20,000.

This is in stark contrast to Wasps' Football League tenants Coventry City, whose average crowd has been less than 10,000 since the League One club returned to the Ricoh in September.

Wasps, who are still in contention for a top-four Premiership place, are sold out for this Saturday's first meeting at their new home with neighbours Leicester Tigers, in front of a capacity 32,600 crowd.
Source: http://www.bbc.co.uk/sport/0/rugby-union/32623942

Also, 32.6k is an impressive turnout for a Premiership game
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BaggyTrousers
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Re: CEO, expects to be richest club in the world.

Post by BaggyTrousers »

Seems to be an inspired choice, moving to Coventry. Crowds have been excellent.

To be clear however, becoming the richest club in the world by borrowing is a long ould haul. They will need £2M a year to service the bond interest payments but I heard Armstrong on R5L this morning and he says they only rely on rugby for 40% of their income. They have an onsite casino, the wendies as tenants & the rugby getting big early crowds. The bond is secured by the stadium apparently valued at £50M

Moving to the Midlands where Tigers & Saints, with possibly Worcester joining, will guarantee big derby crowds. Could be onto a winner, certainly they were collapsing at Adams Park. Seems a smart move on the bake of it.
NEVER MOVE ON. Years on, I cannot ever watch Ireland with anything but indifference, I continue to wish for the imminent death of Donal Spring, the FIRFUC's executioner of Wee Paddy & Wee Stu, and I hate the FIRFUCs with undiminished passion.
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