Wasps’ Ricoh deal set to become the norm in top level sport says law firm
THE £20m deal by Wasps rugby club to take possession of Coventry’s Ricoh Arena is likely to be the first of many similar transactions as financial success continues to dominate the business of sport, a lawyer involved in the deal has said.
Paul Harkin, a corporate partner at Pinsent Masons, said clubs involved in sport at the highest level needed adequate facilities not just to accommodate fans but also to meet the needs of television companies and corporate sponsors.
The Ricoh deal, announced earlier this month, saw Wasps acquire 100% of Ricoh Arena operating company ACL – jointly owned by the Alan Edward Higgs Charity and Coventry City council.
The deal will see both the council and the charity receive £2.77m and Wasps will take on ACL’s £14.4m loan from the council.
Wasps will be granted a 250-year lease at the site, but the council will retain the freehold.
Written into the council’s approval for the takeover is the provision that that Coventry City FC – which only recently moved back to the Ricoh Arena after a period in exile in Northampton – will be allowed to continue to play its home games there.
Pinsent Masons advised the city council on the sale of its stake. The firm’s Structured Solutions team, headed by Graeme Fyfe, led the deal with support from a multidisciplinary team including Harkin and the firm’s Global Sports team, led by partner James Earl.
Fyfe said: “We were extremely pleased to work on such a significant transaction for both Coventry City Council and the City of Coventry. It is great to have helped Wasps find a new home in the city and it will be great to see them playing at the Ricoh alongside Coventry City Football Club from December.”
Harkin added: “It was great to be involved in such a high profile deal bringing Wasps to the Ricoh. This is the type of deal which we are going to see happen more and more, in an era that will see financial success dominate many areas of the business of sport, particularly in terms of increasing utilisation of sports stadia assets.”
