Rugby club Wasps bid £30m for Coventry stadium

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The deal for Premiership rugby side Wasps to take control of the Ricoh Arena would be worth around £30million, it is understood.



A timetable for the deal to be completed has been drawn up and Coventry City Council aims to vote on the deal by the time of the next full council meeting on Tuesday.

It is understood the deal would see a Wasps-led consortium take a 90 per cent stake in Ricoh Arena operating company ACL - jointly owned by the Alan Edward Higgs Charity and the council.

Finer details are yet to emerge, but the council would retain a ten per cent interest in ACL and around £1m of an existing £14.4m loan from the council to ACL would be written off as part of the deal. The rest of the council loan would remain in place to be paid off by Wasps over an agreed time period.

It is also understood the deal would see the council purchase the charity’s shares in ACL before selling them onto Wasps - although it is not clear if the charity will make its money back on the £6.5m it paid Coventry City FC for its shares in ACL back in 2003.

This move would circumnavigate a contractual clause which could potentially still entitle the Ricoh’s current sporting tenants, Coventry City, to ‘first option’ rights on the charity’s shares in ACL.

The deal could also include an investment in stadium upgrades and an arrangement with the consortium around the stadium’s naming rights - understood to be up for renewal next year.

Frustration is growing among councillors about the lack of information being made publicly available and there is internal disagreement about the potential deal within both the controlling Labour group as well as the Tory opposition.

Both political parties are set to discuss the deal on Monday to decide how to vote at full council and it is understood there is likely to be double-figure opposition to the move from some of Labour’s 43 councillors.

Council leader Ann Lucas is thought to be pushing for the deal on the advice of council officers, but other councillors feel the deal is being rushed through and should first be offered to Coventry City FC.

It is understood some councillors will appeal for a free vote on the matter rather than being ordered to toe party lines. There are also suggestions some would resign positions within their party if they are forced to vote against their will.

Concern has also been raised over Coventry Rugby Club’s future if another professional rugby team moved to the city, although Labour MP Bob Ainsworth has voiced support for the plans which would see Wasps relocate to the city permanently.

The potential deal could jeopardise the Sky Blues’ chances of remaining at the venue on a long term basis.

Sky Blues officials insist they must “own their own ground” in order to be financially sustainable, but a Ricoh Arena takeover by Wasps would seemingly thwart the football club’s chances of owning the stadium.

However, the club has failed to make a fresh approach to purchase a stake in the Ricoh Arena since returning to the venue in September - and the last formal Ricoh Arena bid by Coventry City owners Sisu came in 2012.

Sisu also continues to pursue legal action against the council through the Court of Appeal – something perceived as a stumbling block to any Ricoh ownership talks with CCFC.

The Sky Blues have previously insisted they will build a stadium if they cannot secure the Ricoh Arena, but there is no public evidence of progress on any plans for a new stadium.

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Wasps' £20m Ricoh Arena takeover deal approved unanimously by Coventry City Council

Coventry City Council have unanimously voted to accept a £20million bid to take over the Ricoh Arena from Premiership rugby side Wasps.

The deal will see the North London club acquire 100 per cent of Ricoh Arena operating company ACL - jointly owned by the Alan Edward Higgs Charity and the city council.

The deal will see both stakeholders receive £2.77million and Wasps will take on ACL’s £14.4million loan from the council.

Wasps will be granted a 250-year lease at the site, but the council will retain the freehold. Wasps will also look to build a new training base in the city as part of the team’s plans to relocate to Coventry.

The final vote took place in private due to ‘commercial confidentiality’ but time was allowed during Tuesday’s full council meeting for councillors to discuss the deal during a public debate.

Council leader Ann Lucas, said the Labour party insisted on three ‘deal-breakers’ before agreeing to back the move.

She said it must allow continued regeneration of the north east of the city, allow Coventry City FC to remain at the stadium and must not disadvantage the city’s existing rugby team - Coventry Rugby Club.

She said: “The Ricoh is a much-loved community asset that every one of us is proud of.

“No one here has ever been prepared to sell the Ricoh Arena or the leasehold unless we can be completely satisfied our original aims can be met and include a home for the football club.

“We have always had the interests of the people of Coventry, taxpayers and local residents at the heart of any decision about future ownership of the stadium or ACL.

“Let me be clear, any deal around the future of the Ricoh Arena must not happen if it threatens the future of the Sky Blues or Coventry Rugby Club.

“We have been working with Wasps to make sure their aspirations for the club, the Ricoh and the community are right for Coventry.”

Responding to discontent about a lack of transparency and public information about the talks, she added: “We are charged with representing you and I’m sorry that each and every decision we make can’t have a referendum, but that’s what democracy is about.

“You elect us and then decide whether or not we have made those decisions in your interests. We don’t take our responsibilities lightly, in a decision like this we serve the interests of the people of Coventry.”

Tory opposition leader John Blundell said his group backed the sale to Wasps after councillors had been given the opportunity to ask council officers and the club questions about the structure of the deal during a seven-hour meeting on Monday night.

He said: “After some initial reservations and hours of discussions we will be minded to support the resolution.

“This will be another step forward in the continuing regeneration of the north east of Coventry. It will greatly enhance the sporting offer of the Ricoh.”

Fellow Conservative Coun Tim Sawdon added that the council’s hands had been tied in terms of revealing more information at the request of Wasps and ACL partner the Higgs Charity.

He said: “We have to do what is right, which may not always be what is popular.

“It must be made absolutely clear the position of ACL is uncertain after the club made it clear they were returning on a temporary basis, but that creates a lot of uncertainty to the future. This is the best way of protecting ACL’s financial interests.”

Former council leader and Labour Coun John Mutton said the original vision for the Ricoh Arena hadn’t been met and the Wasps deal could allow the project to move forward.

He said: “We, along with our partners the Higgs Charity, were unable to find the resources to develop those pieces of land.

“It never was the council’s job to try and manage an arena like the Ricoh. Officers had to put an inordinate amount of time into it and it took them away from their day jobs.

“My heart goes out to Wasps supporters that live in and around London. It will be no different than when the football club went to Northampton.

“But that can’t be a major consideration for the council. We have to act in the interests of the taxpayers of Coventry.”

Doomed!

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Wasps complete Ricoh Arena takeover



Wasps have completed the full purchase of the Ricoh Arena in Coventry.

In October, the Premiership team bought Coventry City Council's 50% stake in the stadium, and they have now acquired the remaining shareholding from the Alan Edward Higgs Charity.

The stadium's tenants Coventry City reportedly had an offer to buy the charity's shares turned down.

Wasps will play their first game at the Ricoh Arena against London Irish on Sunday, 21 December.

Coventry City will continue to play in the stadium after Wasps make the move from their current home at Adams Park in High Wycombe, 82 miles south of the Ricoh.

The North Stand of the arena will be renamed The Higgs Charity Stand, with Wasps saying that 50p from every ticket sold in the stand will go to the charity, which offers grants to communities around the city.

"We are looking forward to embedding ourselves in the region and helping promote rugby - something we have already committed to by making over 12,000 free tickets available to Coventry schools and rugby clubs," said Wasps chief executive Nick Eastwood.

"We recognise that this announcement might raise concerns amongst the fans of Coventry City Football Club.

"Wasps remain committed to building a long-term and mutually productive relationship with the club and its supporters."