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Comment on the purchase by Mr. Stephen Hayes of a majority shareholding in Wasps

The Board of Wycombe Wanderers Trust notes the announcement that Mr. Stephen Hayes, Managing Director and a major shareholder in Wycombe Wanderers Football Club PLC (WWFC), has purchased a majority shareholding in London Wasps Holdings Limited (Wasps). This is the company that owns London Wasps rugby club. For the text of the announcement see the link here or below.

The full implications of this development will take time to become apparent. On the positive side, there may be benefits for both WWFC and Wasps through such matters as a joint effort to enhance the revenues and reduce the costs of both clubs. However, there are potential dangers to WWFC resulting from the uncertainty that this creates regarding the future of Mr. Hayes's interest in WWFC and how Mr. Hayes balances the interests of WWFC versus those of Wasps.

The individual interests of the clubs will not always be aligned, for example, regarding the charges that Wasps pay to use WWFC facilities and services at Adams Park. Mr. Hayes will inevitably be faced with conflicts of interest in such matters. How such conflicts are managed in practice will be the criterion by which Mr. Hayes will be judged rather than by his initial rhetoric on the matter.

The Trust is concerned solely with the best interests of WWFC and the Trust's Board will monitor the situation closely through the Trust's two PLC Directors and will report to the Trust's members on any relevant developments requiring their attention.

The Trust's Board reiterates its statement made 24th August 2007 that it would oppose any proposed move, such as merging the companies controlling WWFC and Wasps, which places the interests of Wasps on either an equal footing with, or ahead of, those of WWFC - see the link here or below.

The unsustainable finances of WWFC, this new development in the relationship with Wasps, the possible development of a new stadium and the interaction of these issues combine to create an air of uncertainty around the future of WWFC.

It has been announced that Mr. Hayes will be in attendance at the WWFC AGM on Thursday 4th December 2008. The Trust's Board welcomes the opportunity that this will afford for Mr. Hayes to discuss with WWFC shareholders both the finances of WWFC and the implications of his ownership of Wasps together with answering their questions on these matters.

The Trust's Board will report to members matters of significance that arise at the WWFC AGM. Membership of the Trust is the best way to keep informed about significant developments at the Club and allows participation in determining the Trust's responses by voting on any matters that arise. Supporters of Wycombe Wanderers are urged to join the Trust.

* This version was posted 5th December 2008. The original version stated that "Further Mr. Hayes has been installed as Wasps's new chairman." The Trust understands that the new Wasps's Board has not yet appointed a chairman. Mr. Hayes may be the chairman but this will be a decision of the Wasps's board. The Trust apogises for the error in the original version of this statement.

posted in club-issues | 05.12.2008. 23:17

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