Former Newcastle FC owner Mike Ashley is in talks with Wasps about a takeover deal that could potentially rescue the cash-strapped Premiership Rugby club.
The much-maligned Ashley, who also previously held a stake in Rangers, has reportedly offered to refinance £35million worth of bonds taken out by the club’s owner, Wasps Holdings, to fund their move to Coventry in 2014. That debt was due to be repaid in May, while the club also owes £2 million in unpaid taxes to HMRC, as well as an outstanding loan to Sport England.
With Worcester Warriors having released all their players after going into administration, the two-time European champions are desperate to avoid a similar fate. Owner Derek Richardson is asking around £50 million for the club, plus a £12 million cash injection to cover short-term costs.
According to the Daily Mail, Wasps Holdings have sounded out Ashley about buying the club and the Coventry Building Society Arena, as they desperately seek a buyer ahead of next Monday’s winding-up petition deadline set by HMRC. However, he is yet to make a formal offer, and is reportedly one of five interested parties.
However, the stadium represents an attractive proposition for the Sports Direct guru. And he's spoken with Coventry City Council about plans which would involve control of Wasps, Coventry City and the stadium.
Ashley, 58, became deeply unpopular with the Geordie faithful over his perceived lack of willingness to provide transfer funds to managers, finally selling to a Saudi-led consortium in October 2021. He then came close to purchasing Derby County earlier this year before the League One club were bought by local property developer David Clowes.
Wasps’ hopes of securing a buy-out are reportedly being plagued by disharmony within the board and a lack of confidence in Richardson. The players have remained resolute, although a 40-36 home defeat to Northampton Saints on Saturday left them 10th in the table.
On Sunday, club legend Lawrence Dallaglio sparked anger amongst Worcester fans by suggesting the past success of Wasps should give them special dispensation : “They [RFU] will say that any club that's in administration has to go the same way as Worcester,” said the 2003 World Cup winner.
“But the reality is, do you want to lose one of the biggest brands in club rugby, in world rugby and one of the brands that's been one of the most successful sides in the Premiership? Let's hope it doesn't come to that.”
