Wasps expect their move to Coventry’s Ricoh Arena will increase their turnover sevenfold and allow them to compete financially with their Midlands rivals Leicester less than two years after they were one minute from being wound up.
The decision to uproot the club from Wycombe has upset supporters, who were not involved at any point in the discussions to move. They face increased travelling time and expense when Wasps, who face Bath at Adams Park , start playing in Coventry in December.
“The confidential nature of the discussions, which lasted nine months, meant that we were legally obliged to say nothing,” said Nick Eastwood, the Wasps chief executive. “We are very aware of what it means to supporters and we will be offering enhanced packages to them as well as assisting with transport.
“We had been looking for a ground in two years and there was nothing suitable in the London area. Remaining at Wycombe was not an option financially and even if we had had an opportunity to buy the ground, we would not have been able to develop it anywhere near to the standard of the Ricoh Arena.
“We had to move otherwise the club would have died. We have been losing £3m a year for a long time and one day after I took over as chief executive we faced a wind-up order over an unpaid six-figure tax bill. The money had to leave our account by 3.30pm on a Wednesday; it did so at 3.29pm.
“We had to act not only to ensure we were never in that position again but that we would be financially robust. That meant acquiring our own ground and a facility that we would be able to use every day of the year, not just for 16 home matches. We have achieved that, ensuring our supporters still have a club to follow.”
Wasps have secured a 50% holding in the Ricoh Arena with the Alan Higgs Trust, ensuring primacy of tenure. The club aim to be the sole owners, fully exploiting a venue that includes a hotel and a conference centre.
“When we were winning the Premiership and European Cup a decade ago, we were punching above our financial weight,” said Eastwood. “Leicester had double our turnover: now it is probably three times greater and a clear gap has opened between Premiership clubs that own their grounds and those who do not. With the salary cap going up and French clubs spending freely, we had to do something.
“Playing at the Ricoh Arena will in time increase our turnover by seven, allowing us to compete at the highest level in England and in Europe. We will be able to provide our supporters with an unrivalled match-day experience and give people in Coventry, a powerhouse of the game not so long ago, the opportunity to watch professional rugby. We can look to the future with confidence.”
