Cash crisis rocks QPR and Wasps

13 April 2012

The company who own and run Queens Park Rangers football club and London Wasps rugby club admitted today that they have run out of money.

The shock announcement was made to the City by Loftus Road plc.

The company suspended trading in their shares on the Stock Exchange as of 7am this morning, delayed publication of their half-year results and said meetings were planned today with the footballers and rugby players to tell them how the news affects them.

The crisis engulfing Loftus Road plc grew during the day with the company poised to go into administration after lodging papers at company courts.

Standard Sport understands while Loftus Road plc and QPR will go into administration, Wasps will not.

The administrators were due to meet Loftus Road staff this afternoon to explain the effect of the move aimed at trying to stabilise a difficult situation.

Chris Wright, a director of London Wasps, is favourite to win the battle to control the rugby section if the company is broken up and he has made it clear Wasps will not be left to stand alone.

The two clubs will continue to trade and to fulfil fixtures, but the situation's seriousness means there is no immediate prospect of a takeover.

Wright, the millionaire founder of the Chrysalis media empire, is the chairman of Loftus Road plc.

He announced earlier this season, after being abused by QPR fans, that he wanted to sell the football club, but continue involvement with the rugby team.

Today there were reports that Andrew Ellis, a Knightsbridge property developer, is considering a £9million bid for the football club - but that will not be enough. Standard Sport have learned that Wright handed QPR another £500,000 last week to cover wages, so he is owed about £7.5m and the company have other creditors who are owed substantial amounts. One big creditor is Barclays Bank, where Loftus Road plc has a £2m overdraft, guaranteed by Wright.

Loftus Road plc have lost more than £14m over the last two years because of Rangers' poor performance.

QPR are fighting to avoid relegation, but Wasps are on course to qualify for the lucrative Heineken Cup next season. The company's shares, once worth 104p, traded at 31/2p on Friday. Loftus Road plc told the Stock Exchange today: "The directors are actively seeking potential providers of long-term finance to meet the company's future funding requirements. But there is currently no prospect of such finance being made available in the immediate future."

The directors are looking at ways of refinancing or restructu-ring the company.

Wright is considering demerging the football and rugby clubs, with a guarantee the rugby team can still ground share at Loftus Road.

However, he may retain ownership of QPR's training ground in Acton.

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Cash crisis rocks QPR and Wasps

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