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#Post#: 97614--------------------------------------------------
Should Worcester and Wasps lose their "P" shares ?
DIR By: SunburyQuin
Date: October 20, 2022, 2:20 am
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There was an interesting piece on BBC Rugby from Rob Baxter
where he favours Wasps and Worcester losing their "P" shares.
Both sides are in administration, agreed. But, for them both to
lose their "P" share status whilst there is still a (remote)
possibility that new owners "may" emerge, I think, is too
punitive at this stage.
Maybe I am being too emotional, but I think that it is too early
in the piece for that. Everyone would like to see them back.
Wasps have for many generations been a totem pole of English
Rugby, and, as I said a while ago on another thread, it is
tragic to lose the vision and legacy of Cecil Duckworth's
commitment to Worcester Warriors.
I say, let them keep the "P" shares, in the hope that there may
be a resurrection for both Clubs.
#Post#: 97620--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: deadlyfrom5yardsout
Date: October 20, 2022, 2:50 am
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Administrators will sell Wuss and Wasps P shares to be offset
against the losses.
#Post#: 97622--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Bucksquin
Date: October 20, 2022, 3:31 am
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This won't and can't be decided on emotion. As Deadly says, it's
all to do with the "rules" that administrators have to follow in
such circumstances. Within those rules, a deal that includes the
P Shares might be possible, but only if it's (at least equally)
in the interests of the parties whose interests the
administrators are appointed to represent.
#Post#: 97623--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Rocker
Date: October 20, 2022, 3:34 am
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"a deal that includes the P Shares might be possible, but only
if it's (at least equally) in the interests of the parties whose
interests the administrators are appointed to represent. "
And those parties are the creditors, not anyone else.
#Post#: 97628--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Boonie
Date: October 20, 2022, 4:17 am
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It's a tough one, but rules are rules and everyone signed up to
them. I read the Baxter piece and had some sympathy for his
view, but he seemed to be saying that clubs could use this as a
way to pay off debts, and I think that might be stretching a
point. The "punishment" is to lose the P shares, but you could
also say that a year in the Championship, with no access to
European paydays, could also be construed as a punishment,
albeit not as harsh as losing the P shares.
It's a terrible situation for the players and staff of both
clubs, either way.
When Richmond and London Scottish folded, they started again
from the bottom, regardless of the LI "merger", and although it
has taken a long time, they are still around. That might be the
only options remaining now for Worcs and Wasps.
#Post#: 97634--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: deadlyfrom5yardsout
Date: October 20, 2022, 4:40 am
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Market Forces at play then I guess. If you spend 150% of your
Income you need to turn your Fan off.
Christ, I sound like Morris Minor....
#Post#: 97637--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Donuts
Date: October 20, 2022, 4:59 am
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I suspect there is a lengthy shareholders agreement in place
with respect to the P shares and what happens when a shareholder
goes into administration or liquidation. This is obviously
confidential .
Having had a quick look at the corporate vehicle that the P
shares are in it seems that any transfer of shares (ie to a
Wasps or Worcester new co ) requires a "super majority" which is
the approval of 10 other shareholders ie 10 other Clubs. The
issuing of new shares requires all clubs to agree. CVC value
their 27% at £100m (although I believe they paid £200m for them)
which therefore means that the 13 clubs own 73% at a value of
£270m or £20.8m per club
#Post#: 97657--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Camquin
Date: October 20, 2022, 9:00 am
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The legalities on share ownership is here:
HTML http://shorturl.at/gSVY9
PRL Investors Limited part owns Premier Rugby HoldCo (the rest
is owned by companies owned eventually by CVC) which owns
Premiership Rugby Limited which runs the Premiership on behalf
of the RFU.
WRFC Trading Ltd and Wasps Holdings Ltd are the shareholders and
both are in administration, so 4.4.1 applies.
So the league should buy both sets of shares from the
administrator.
This is why both companies were desperate not to go into
administration.
The administrators will of course appeal, claiming that they
have buyers lined up who should be permitted to keep the shares,
but I think that is just a formality.
#Post#: 97659--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: Domestos
Date: October 20, 2022, 9:07 am
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--- Quote from: Camquin link ---
>
> The legalities on share ownership is here:
>
>
HTML http://shorturl.at/gSVY9
>
> PRL Investors Limited part owns Premier Rugby HoldCo (the rest
is owned by companies owned eventually by CVC) which owns
Premiership Rugby Limited which runs the Premiership on behalf
of the RFU.
>
> WRFC Trading Ltd and Wasps Holdings Ltd are the shareholders
and both are in administration, so 4.4.1 applies.
> So the league should buy both sets of shares from the
administrator.
>
> This is why both companies were desperate not to go into
administration.
> The administrators will of course appeal, claiming that they
have buyers lined up who should be permitted to keep the shares,
but I think that is just a formality.
>
--- End Quote ---
That link doesn't work.
#Post#: 97681--------------------------------------------------
Re: Should Worcester and Wasps lose their "P" shares ?
DIR By: deadlyfrom5yardsout
Date: October 21, 2022, 4:04 am
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How can you just move ownership of anything around from Company
to Company to hide it from the authorities? It makes the
policing of all this a completely toothless Tiger.
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