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The valuation of the Ricoh Arena has fallen by £9 million in 12 months.

The accounts for Wasps Holdings Ltd - the company which controls Wasps and the Ricoh Arena- revealed the Judds Lane-based arena was revalued on March 31, 2019.

Gerald Eve LLP, an 'accredited independent valuer', valued the Arena leasehold interest at £51m - down from £60m in 2018.

CoventryLive understands the significant fall in valuation is due to there being no long-term sponsorship deal in place.

A 13-year association with Japanese electronics company Ricoh for the 32,000-seater venue is at an end with the search ongoing to find a successor.

Ricoh extended its deal on March 2016 but then-Wasps chief executive David Armstrong said at the time: "It’s a short-term extension, not a long-term extension.

“It’s not rolling, it’s for a fixed period, but I can’t say exactly for how long.”

A 'pivotal moment for Wasps'

Back in June 2018, London marketing agency Mongoose Sport & Entertainment were brought in to spearhead the search for a new main sponsor.

Then Wasps Rugby commercial director Stuart Cain (now chief executive - venue) highlighted the importance of securing naming rights 17 months ago.

He said: "The opportunity to establish a new stadium naming rights partner is a pivotal moment for Wasps as it allows us to grow our sponsorship strategy and invest further in the development of the business and our mission to become the most successful rugby club in the world, both on and off the pitch."

Since the previous year end, new partnership deals have been signed with Vodafone, Under Armour and Mizuna for playing kit and retail merchandise.

New partnerships have also been agreed with NPower, Wright Hassall, T M Lewin and Mizuno Netball.

But the Ricoh Arena branding remains on the stadium with the stadium naming rights unsold.

What's next?

Within the latest Wasps Holdings Ltd accounts it is detailed that the arena will be next formally revalued in 2021.

There is also further information under the 'principal risks and uncertainty' section (copied below) which was approved by the board and signed on its behalf by director Nick Eastwood.

Valuation of Arena materially lower than revaluation

Impact: Asset cover reduced for Bondholders.

Mitigation: Use professional valuation companies to provide accurate valuation on a regular basis. Long term contracts and income growth to support valuation.

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