Administration possible if Leicester don't get £13million cash injection
A planned £13 million pound cash injection is set to save Leicester Tigers from potentially going into administration.
The club revealed this week that directors Tom Scott and Peter Tom have committed to an investment which “could raise up to £13m for the club”, a move which was needed as Tigers admit that recent events have seen their financial “situation worsen significantly”.
Scott is set to invest £10 million, while Tom is set to invest a further £3 million, both by way of a share buyout. Ordinary shareholders will vote on the share subscription on March 3rd.
Despite lifting the Gallagher Premiership trophy last season and receiving a £1 million windfall payment after the RFU bought Steve Borthwick and Kevin Sinfield out of their contracts, the club finds itself on perilously close to calling in administrators.
The stark reality of their financial situation was detailed in an address to shareholders by CEO Andrea Pinchen. The demise of Wasps and Worcester is one of the main sources of grief for the midland’s giant’s coffers.
“As a consequence of both of those clubs being expelled from the Premiership, Leicester Tigers lost two important home matches in the current season and the associated match day revenues. This loss of revenue has contributed to a significant deterioration in the Company’s financial position since the publication of its 2022 annual report and a working capital shortfall, together with a breach of overdraft limits in place with the Company’s bankers, is expected in the first quarter of 2023.”
If it were not for the £13 million investment, the club admit that they “would have to find urgent alternative funding. There is no guarantee that such alternative funding will be available or on terms deemed to be acceptable either to the Directors or to the Company’s creditors. Given the Company’s current and anticipated working capital requirements, the Directors believe that should the Resolutions not be passed they may have no choice but to appoint administrators.”
In the case of Scott, the deal would likely see Scott become a majority shareholder in Leicester Tigers with over 71 per cent of ordinary shares. Despite Tigers not being publically listed, a waiver is needed so that Scott is not obliged to make an offer for all of the outstanding shares.
“Although the Ordinary Shares are not publicly traded or listed, as a public limited company the Takeover Code applies to the Company. As a result, without a waiver from the Takeover Panel and the approval of the Independent Shareholders, the Initial Subscription would give rise to a requirement for Tom Scott to make a mandatory offer for all of the outstanding shares in the Company. The Takeover Panel has agreed with the Company to grant the Rule 9 Waiver, subject to the passing of the Waiver Resolution at the General Meeting by the Independent Shareholders on a poll.”
It’s a worrying time for the club and English rugby writ large. If the biggest rugby club in the land is hitting the wall, what does that say about the state of the game more broadly?
Comments on RugbyPass
Wow, there is a lot of “could have” and “ should have” in this waist of time dribble. I love the deportation in this story to search for a glimpse at a silver lining. Here are the facts, NZ was a badly coached and undisciplined shadow of their former glory. They never took the lead in a game they were never going to win.
156 Go to commentsGOTTA MAKE ‘THE GEORGE’ HAPPEN!!!! That’s a great idea! A trans Tasman midget battle on ANZAC Day. I don’t think the ABs Wallabies game should be a one off winner takes all though, just the first match with the other two later in the year with the RC. Reason being, no one will ever shut up about how aussies couldn’t win it when it was a 3 match series.
1 Go to comments@Ben smith. Thats knock out rugby. So honeslty who cares?
156 Go to commentsIt will interesting to know which Irish players said that…
1 Go to commentsNaaaww boys will be boys! Now run along ya wee scamp! Don’t let us catch you at again😏
1 Go to commentsGreat to have Ethan Blackadder back in the Crusaders in the last few weeks. One of the best all round loose forwards around. He played so well last week against the Rebels. Fantastic attitude Ethan has and his comments are spot on.
2 Go to commentsThe author is 100% right. The Springboks know that they don't have near the natural attraction, mana, skill and mystic the All Blacks have. So, Chasing the sun 1 & 2 was concocted to overblow the Boks image on the back of a corruptly obtained “win". It's marketing ploy to force the Boks delusion as the World's Best. I guess World Rugby is also not to be believed when it came out with an apology about how the final was officiated. And if the 2023 final such a superb game by the Boks, then the Boks crying about Referee Bryce Lawrence for decades is also deserves a laugh. Chase the sun and get burned like a moth. A very well written literary piece that tore the Boks and Chasing the sun farce to shreds. 🖤All Blacks🏉
156 Go to commentsI’d say France was far more hard done by in the 2011 final than the All Blacks in this game. Joubert simply refused to call a penalty against the All Blacks in the last quarter even directing an All Black to drop a ball he picked up in an offside position rather than penalizing him. This article also totally discounts the efforts of PSTD. Ask Jordie how well he played. Or the backup flank who played hooker for the entire game. Siya was also a brilliant tackle by Richie from scoring a blinder. Pollard was also fantastic. Look I don’t like the boks style but the only thing more questionable than the content of this article is the timing of it. Get over it already
156 Go to commentsDad Marty was also a handy rugby player for Linwood back in the day. Great bloke. Sensational softball career.
2 Go to commentsWhat ifs are always dangerous. If you look at the game before Sam cane got sent of SA was dominating. You could make the argument the going down to 14 men rallied the troops and made them have to play to win which is always dangerous.
156 Go to commentsOmg… you are bruised And battered Benny. Stop crying … the scoreboard speaks. What a pathetic lover you are.. 🤣🤣🤣
156 Go to commentsPacific Lions, cry me a river
156 Go to commentsThis is the single worst piece of journalism I have ever seen since your last one. As a neutral, who really states that there should be an asterisk next to a win? You are an utter embarrassment to real AB fans, journalism and that joke of a house which pays you for this nonsense. Get a life, Ben.
156 Go to commentsGuys. Cancel the World Cup champions after this analysis. It changes everything. Ben knows. We’ll have to unengrave the Bokke off the trophy and hand it to the ABs, now that I’ve been enlightened about this illegitimate win. This needs to be done. Now!
156 Go to commentsBen is right here though, Springboks were woefully poor with the advantage they had throughout this game. The France match was heroic because that was an even contest this match had it taken place in Rugby Championship would have been an easy win for NZ. If anything this match should tell the Bok coaches that a lot of this team should be changed. They beat this same NZ team by record margin with the same circumstances but with a different core. They bring back the tried and tested guys and they nearly botch this game.
156 Go to commentsI knew who wrote this article from the first few words in the headline…lol. The red card actually did the ABs a favour. It galvanized them, only then did they step up a gear. Before that there was zero momentum.
156 Go to commentsFirstly the foul on Bongi was a planned move just like the NZ master plan with Bryce Lawrence you kiwis are filthy fux perhaps try to play a cleaner game next time I doubt that’s possible tho but don’t worry world rugby is on yr side they trying to take away all the BOKS strengths to help all you weakling as Jeremy Clarkson would say LA OO ZA ERR..🤣
156 Go to commentsAbsolutely spot on Ben. I certainly wouldn't gloat over a win like that. Frustrating as it is it's done and dusted and history will forever show the result.
156 Go to commentsHo hum.
156 Go to commentsNo question they were the better team. But that is the beauty of sport isn’t it!
156 Go to comments