Ex-Newcastle United owner Mike Ashley held talks with Wasps about potential takeover
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EXCLUSIVE: Ex-Newcastle United owner Mike Ashley is in talks with struggling Premiership Rugby club Wasps as he has his sights set on a £50m deal, while negotiations are underway between the parties involved
- Mike Ashley wants to buy financially struggling Rugby Union side Wasps
- Newcastle United’s former owner is in talks with Wasps over a deal
- Ashely previously offered to refinance £35m worth of bonds against Wasps
- Wasps owner Derek Richardson expected to hold out £50m bid
- Ashley has yet to make a formal offer and may not do so given the club’s position
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Former Newcastle owner Mike Ashley has held talks with Wasps over a possible takeover as the debt-ridden club struggles to survive.
Sportsmail has learned that the negotiations stemmed from an offer from Ashley to refinance £35 million in bonds that the club’s owner, Wasps Holdings, had taken out to fund their move to Coventry in 2014, which was due to be repaid last May.
Ashley is said to have signed a principal terms agreement with Wasps Holdings to refinance their debt, but the deal failed due to time constraints.
Former Newcastle United owner interested in buying struggling rugby team Wasps
Ashley is in negotiations with the club but has yet to submit a formal takeover offer
Wasps Holdings has since polled Ashley about buying the club and the Coventry Building Society Arena, with the Sports Direct mogul being one of five interested parties urgently seeking a buyer ahead of the deadline of its liquidation petition. next Monday, set by HM Revenue and Customs.
Ashley will retain a stake in Wasps at the right price but has yet to make a formal offer and may not do so given the state of the club’s finances.
Wasps are in the midst of a financial crisis with £35m in bond debt and £2m in unpaid taxes
In addition to the £35m bond debt, Wasps also owe £2million in unpaid taxes to HMRC, have an outstanding loan to Sport England made to help them through Covid.
Wasps owner Derek Richardson is reportedly asking around £50million for the club, plus an immediate £12million cash injection to cover short-term operating costs.
Former Wasps chief executive David Armstrong is working on a bid with investment group Terminum Capital, but their offer is conditional on the club being placed in administration, which would lead to automatic relegation from the Premiership under RFU regulations.
Wasps’ appeal for Ashley lies primarily in the stadium, which runs a profitable hospitality business, including a Hilton hotel and Grovesnor Casino, as well as the potential to return to football by buying Coventry City, who are tenants of the rugby club.
Ashley retains a strong interest in football despite the bitterness that soured his tenure at Newcastle and came close to buying Derby earlier this year, before the League One club was bought by local property developer David Clowes.