Ex-Newcastle owner Mike Ashley interested in buying Wasps - report

Former Newcastle United owner Mike Ashley has reportedly held talks about taking over the financially stricken Wasps, who are in dire need of securing a new owner by the time of next Monday’s winding-up petition deadline set by HM Revenue and Customs. There are fears that the Gallagher Premiership club could go the same way as Worcester, who were last week kicked out of the top-flight and regelated to the Championship for the 2023/24 season.

Wasps boss Lee Blackett revealed last week what players and staff had been told about the second filing to the High Court to appoint administrators to the club, while broadcaster BT Sport stirred the pot at the weekend by suggesting the upcoming game next Saturday at Exeter was in doubt.

Sportsmail have now reported that Ashley, the Sports Direct owner, is one of five interested parties to have been sounded out by Wasps, who have been unable to refinance the £35million bond that was due for repayment in May. They also owe £2m in unpaid taxes to HMRC, while there is also a loan outstanding to Sport England that was provided to the club during the pandemic.

The newspaper report read: “Sportsmail has learned that the negotiations stemmed from an offer from Ashley to refinance £35million worth of bonds taken out by the club’s owner, Wasps Holdings, to fund their move to Coventry in 2014 that were due to be repaid last May.

“Ashley is understood to have signed a Head of Terms agreement with Wasps Holdings to refinance their debt, but the deal collapsed due to a shortage of time.

“Wasps Holdings have since sounded out Ashley about buying the club and the Coventry Building Society Arena, with the Sports Direct magnate one of five interested parties as they urgently seek a buyer ahead of next Monday’s winding-up petition deadline set by HM Revenue and Customs.

“Ashley retains an interest in Wasps at the right price, but has yet to make a formal offer and may not do so given the state of the club’s finances… Wasps owner Derek Richardson is understood to be asking around £50m for the club, plus an immediate cash injection of £12m to cover short-term running costs.

“Former Wasps chief executive David Armstrong is working on a bid with investment group Terminum Capital, but their offer is subject to the club being placed in administration, which under RFU regulations would trigger automatic relegation from the Premiership.”

The report added that what had attracted Ashley to Wasps was the stadium, which also has a hotel and a casino as well as having Coventry City FC as tenants. The pressing concern from a Wasps perspective is next Monday’s court hearing and the monthly wage bill of approximately £700,000 which needs to be covered soon.

“One well-placed source claimed that the club are in danger of running out of money for wages and essential costs this week and that overall they are swamped by a ‘debt pile of £65m’. The source added that the financial crisis has been ‘snowballing and snowballing’, with Wasps continuing to use consultants, despite knowing that they can’t afford to pay for their services.”