EXCLUSIVE: 'We are not the sick man of English rugby'
Nick Eastwood denies Wasps are the sick man of English rugby, weighed down by more than £50m of debt after their ground breaking move to the Ricoh Arena in Coventry and insists they will compete for big name signings after next year’s World Cup in Japan.
A £35m bond issue makes up the bulk of the debt and that is due to be repaid in 2020 while their Irish millionaire owner Derek Richardson’s personal commitment to the former English and European champions is now heading towards £20m. The Wasps Holdings group made a total loss before tax of £9.7m in the last financial year compared to £4.7m in the previous year and as RugbyPass reported last week there are real concerns about the club’s ability to keep top players and compete for leading talent when it comes onto the market.
However, against the backdrop of those figures Eastwood, the Wasps deputy chairman, has made it clear the club is not on the brink of financial disaster and with Premiership Rugby Ltd set to bank £240m from CVC Capital Partners for a 25 per cent stake in the business, there are reasons to be optimistic with each club set to receive around £20m as their share of the windfall.
Eastwood is even predicting an end to annual cumulative losses of around £30m in the Premiership stating: “The fact that some significant private investors are looking to get involved shows the game is at a tipping point, possibly similar to football in the 1990s. We are entering a new growth phase and while there will be challenges, the game is in great shape to move forward to where you can get a significant number of clubs breaking even.”
With England’s top clubs operating with a salary cap that is currently set in stone – with two marquee players allowed to be signed outside he £7m limit – to bring in new faces, clubs have to offload talent. That is why there is speculation swirling around Wasps with England fullback Elliot Daly a possible target for Saracens. However, Dai Young, the Wasps director of rugby insists his prized possession is under contract. Young said: “There are players out of contract at the end of the year, Elliot is not one of them. By the nature of them being out of contract, teams are going to be interested, there are going to be rumours.”
Amongst those rumours is Springbok fullback Willie le Roux who could be heading back to South Africa or Japan after the World Cup while Bristol are understood to be interested in taking England No.8 Nathan Hughes away from Wasps with a lucrative deal.
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Eastwood said: “We are not the sick man of English rugby and we are in phase when we have to invest in the business. There is a realistic possibility that in three years the game will look very different financially than it does now.
“The owners like Derek, Nigel Wray, at Saracens and Bath’s Bruce Craig didn’t get to where they are accumulating the wealth they have achieved by throwing bad money after bad – they know what they are doing. They have learnt through their business careers that you have to invest heavily but you reap the benefit further down the line. People are picking up on words used by our auditors which say that if in the event that shareholder support was not forthcoming there would be doubt over the company’s ability to continue. Derek is committed to the club and his support is rock solid.
“The reality is we are still losing money and it means we are dependent on shareholder support and that puts us in exactly the same position as every other Premiership club.
“The key aspect of this is the cost of the playing squad and the salary cap is flat for the next two years which means you can keep the costs flat while hopefully generating more revenue. We hope to get into profit in a few years rather than many years. There is genuine optimism that if we all act sensibly as a group in the Premiership revenues can keep growing.
“We have had three full seasons at Coventry and nobody said it would be easy and it is still very early in the whole endeavour and we are effectively a start-up and any business requires significant investment in the early years. We are perfectly happy where we are and now it is about phase two; growing the fan base and getting the fundamentals solid and Derek has always known that will be the case. Many aspects of the business model; the hotel and concert business are key and are going very well.”
Eastwood accepts bringing in more big names will require departures and added: “Dai is always planning 18 months in advance and we are well ahead in our thinking about how to divvy up the money for players going forward.
“Essentially, you have the salary cap and two marquee players so if there are an influx of Southern Hemisphere stars post-World Cup then the only way you could get them would be to replace one marquee player with another or get rid of enough salary under the cap to afford whatever the player is asking for. It is as simple as that.
“There are probably half the Premiership clubs who are around the cap figure, two or three relatively close and the others have a got a bit of room.”
Eastwood could not give a start date for the club’s ambitious new training facility outside Coventry, due to on-going negotiations but insisted the project was on track.
Comments on RugbyPass
The value he brought to the crusaders as an assistant was equal to what he got out of being there. He reflected not only on the team culture but also the credit he attributed to the rugby community. Such experience shouldn’t be overlooked.
3 Go to commentsGood luck Aussie
10 Go to commentssmith at 9 / mounga 10 / laumape 12 / fainganuku 14
54 Go to commentsBar the injuries, it’s pretty much their top team …
2 Go to commentsDon’t disagree with much of this but it appears you forgot Rodda and Beale, who started at the Force on the weekend.
10 Go to commentsExcept for the injured Zach Gallagher this would be Saders best forward pack for the season. Blackadder needs to stay at 7, for all of Christies tackling he is not dominant and offers very little else. McNicholfullback is maybe a good option, Fihaki not really upto it, there was a reason Burke played there last year. Maybe Havilli to 2nd five McLeod to wing. Need a strong winger on 1 side to compliment Reece
1 Go to commentsTo me TJ is clearly the best 9 in the competition right now but he's also a proven player off the bench, there's few playmaking players who can come off the bench as calm and settled as he is, Beauden can, TJ can and I doubt any of the scrumhalves in contention can, if they want to experiment with new 9s I want him on the bench ready to step in if they crumble under the pressure. The Boks put their best front row on the bench, I'd like to see us take a similar approach, the Hurricanes have been doing similar things with players like Kirifi.
54 Go to commentsROG has better chance to win a WC if he starts training and make himself eligible as a player. He won’t make the Ireland squad but I reckon he may get close with Namibia (needs to improve his Afrikaans) or Portugal. Both sides had 1000:1 odds to win the RWC in 2023 which is an improvement on ROG’s odds of winning a RWC as a coach. Unlike Top 14 teams, national teams can’t go shopping and buy the best players - you work with the available talent pool and turn them into world beaters.
3 Go to commentsthat backline nope that backline is terrible why would you have sevu Reece when he’s not even top 5 wingers in the comp why have Blackadder when there’s better players no Scott barret isn’t an automatic the guy is more of a liability than anything why have him there when you have samipeni who’s far far better
54 Go to commentsAh, good to find you Nick. Agree with everything about Cale. So much to like about his game
51 Go to commentsNot too bad. Questions at 6, lock and HB for me. The ABs will be a lot stronger once Jordan and Roigard return. Also, work needs to be made to secure Frizzell back for next season and maybe also Mo’unga; they’re just wasting time playing in japan
54 Go to commentsOn the title, i wonder for many of those people it is a case something like a belief in working smarter, not harder?
1 Go to commentsForget Sotutu. One of those whose top level is Super Rugby. Id take a punt on Wallace Sititi Finau ahead of Glass body Blackadder.
54 Go to commentsI’m a pensioner so I've been around a bit. My opinion of SBW is he is an elite athlete and a great New Zealander and roll model. He has been to the top and knows what he's talking about. To all the negative comments regarding SBW the typical New Zealand way, cut that tall poppy down.
17 Go to commentsI'm not listening to a guy moralise over others when this is the guy who walked out mid season on Canterbury RLFC when he had a contract with them, what a hypocrite. All the Kiwis sticking up for this unprincipled individual because they can't accept justified criticism, he has zero credibility or integrity. Those praising him are a joke.
17 Go to commentsI’d put Finau at 6 instead of Blackadder but that’s the only change I’d make. Can’t wait to see who Razor picks.
54 Go to commentsTamati Williams, Codie Taylor, and Same Cane? Not sure about Hoskins Sotutu at test level. Wasn’t that impressive last season. Need a balance between experience and talent/youth.
54 Go to commentsInteresting insight. Fantastic athlete, and a genuine human being.
17 Go to commentsThey played at night in Suva last weekend and it’s an afternoon game forecast for 19 degrees in Canberra this weekend. Heat change is a non issue.
2 Go to commentsWishing Rosie a speedy recovery
1 Go to comments