Investing in the Wasps Rugby Club Retail Bond Paying 6.5 Percent
The Wasps venture into the London Stock Exchange to try and raise over £25 million is a whole new concept for sporting clubs in the UK. The move seeks to help the Rugby club bring back the glorious days back by announcing their desire to have a Retail Bond featured on the London Stock Exchange. Wasps are not just another rugby wannabe. Since they won the European Cup back in 2007, no other English club has been able to register such a glorious fete.
However, the club almost went out of business a couple of years later but the entry of Derek Richardson, an Irish businessman, gave the champions a lifeline including the purchase of Ricoh Arena in Coventry back in 2014. As a result, the Wasps business off pitch has been transformed. The club new believes they will be overtaking Toulouse with the new venture as Europe’s rugby club with the largest turnover if the Retail Bonds bring in over £21 million.
At the same time, the Retail Bond venture is also indicating Wasps are keen in attracting big rugby stars into their corner such as Clermont and Toulon who are clear high-rollers today. This is so as much as the club seems committed to sticking to the £5.1 million salary cap in the Premiership. However, the club, apart from indicating how the salary cap is vital for everyone especially for Premiership success, things might change in the future and the cap might change. Chances are the Wasps squad might require extra funding including more star players-a move that requires money.
The retail bond venture is clearly an investment bound to change opportunities, particularly with the English market pressure brought about by the finalists of the Champions Cup; Clermont and Toulon. Nonetheless, Wasps management have reiterated that the club’s success is not dependent on the bond as such but will give them the certainty and stability any club would like to have.
While other sporting clubs could be motivated to follow the same direction the Wasps have carved for themselves, it goes without saying that the rugby club has done its homework and could be reaping big as fans and investors alike join in.
As such, the Secured Bonds at 6.5% are being offered to investors at £2,000 minimum initial investment. The same bonds can also be sold and bought in multiples of around £100 once the initial purchase has been done. The club hopes to collect between £25 million and £35 million from the undertaking. While a chunk of the investment is expected to help rebuild the club and put it at a better or equal footing with the best in the industry, a chunk of the money raised will be used to repay £13.4 million.
The investment will attract those willing to lock their money in the next seven years until 2022, in particular if the 6.5 percent decent annual return is anything to go by. The offer period continues until May 6, 5pm, with the interest expected to be remunerated in two instalments annually.
If you want to take a look in the investment prospectus for the London Wasps go here