Wasps owner Derek Richardson could take almost £10 million out of the rugby club if it succeeds in raising up to £35 million from the first-ever retail bond issued by a sports club, it emerged today.
The Irish insurance entrepreneur, who saved the Premiership club from administration two years ago, could be paid back almost half the £20 million loan he pumped into the team — although he remains committed to the club for the long-term, Wasps chief executive David Armstrong said.
The bond will pay an annual 6.5% to investors willing to pay a minimum £2000. The debt is secured on Wasps Holdings and Arena Coventry Limited, the company Wasps used to buy the Ricoh Arena last year. The move to Coventry puts Wasps on track to move ahead of French rivals Toulouse as the world’s richest rugby club by revenues.
As well as repaying part of Richardson’s loan, the cash will also be used to pay down a loan from Coventry City Council.
The returns on retail bonds are attractive, but they not protected by the Financial Services Compensation Scheme.
