Any financial help for Wasps will be transparent says Coventry City Council

Wasps has a 250-year lease on the Coventry Building Society Arena - known until last year as the Ricoh Arena

Any decision by Coventry City Council to give financial support to Wasps will be transparent, the local authority's leader has said.

Stadium operators, with help from the council, have applied for £13m from the West Midlands Combined Authority (WMCA).

Wasps have not yet commented why the money is needed.

A previous bailout decision by the council in 2013, at a cost of £13.4m, was taken behind closed doors.

At a hastily arranged meeting eight years ago the local authority backed the loan to Arena Coventry Limited, which managed the then Ricoh Arena.

The decision immediately came under fire and the council found itself defending the move in court.

Wasps paid off the council loan in 2015, shortly after purchasing the stadium, which is today known as the Coventry Building Society Arena.

Councillor George Duggins told a full council meeting on Wednesday that Wasps had not yet directly approached the local authority.

State aid

Addressing councillors on Wednesday, Mr Duggins said: "Any decisions will be transparent one way or the other and will be taken by, in the first instance this group, and then by the political management process.

"If we were to get involved and there was to be any kind of help for Wasps by this authority, we would have to seek legal aid, as we would previously have done.

"We would have to clarify what the position was in respect to state aid - but we're not there yet. And we may never be there."

Wasps have finished outside the Gallagher Premiership top six for two successive seasons

WMCA said no formal decision had yet been reached.

Wasps' stadium business is currently under financial strain and the rugby club has delayed repaying bondholders, who invested at least £2,000 each, to help it raise £35m after the takeover of their stadium.

The club has said the delay is to allow them time to finalise terms with bank HSBC to refinance that bond debt.

However, the council leader's decision not to rule out directly helping Wasps with their finances is likely to provoke some reaction.

Many Coventry City fans, and owners Sisu, feel the council's decision to support the struggling ACL stadium business in 2013 is ultimately what led to the Sky Blues leaving Coventry - twice.

Taxpayers might also be concerned about the ramifications of the council getting involved with the stadium again.

The last bail out prompted multiple lengthy and costly legal battles.

Should a plea for help come, the council will weigh up any risks with the importance of a successful stadium business to the regeneration of that area of Coventry.

But, as the leader said, they are not there yet and may never be.