Wasps Set For Administration ‘within Days’
Gallagher Premiership rugby union club Wasps is set to enter administration and has been suspended from the league.
The club announced on Wednesday (12th October) that it will ‘likely’ enter administration ‘within days’ after twice filing notice to recruit insolvency experts to help with it debts.
The suspension from rugby union’s top-tier competition in the UK was confirmed by the Rugby Football Union (RFU)’S Club Financial Viability Group following spiralling debts amounting to tens of millions of pounds.
Wasps owe £2m to HMRC and £35m to bondholders as part of the scheme that financed the club’s move to the Coventry Building Society Arena in 2014.
It is understood Wasps players and staff have been given no guarantees over whether they would be paid October’s wages, which could lead to termination of contracts.
An RFU statement read, ‘We appreciate this is a very difficult time for Wasps players, staff and supporters who will be concerned at news that the club is likely to enter administration The RFU will continue to work with the club, PRL and any potential administrator or future investors to find the best possible outcome for the club.’
Coventry-based Wasps will not fulfil this Saturday’s Premiership game at Exeter following the news.
A statement from Wasps Holdings Limited, read, ‘It has become clear that there is likely to be insufficient time to find a solvent solution and it is therefore likely that they will enter administration in the coming days with a view to concluding deals shortly thereafter.
‘We have been asking potential funders and investors to provide bridging finance to provide enough time for a solvent solution to be found. Regrettably, this has not been possible to date, although we will continue to pursue this until the very last opportunity.’
Wasps are set to become the second Premiership rugby union side to go into administration within weeks, following Worcester Warriors last month, in what has been a turbulent time for the league.
The Warriors was suspended for the season and relegated to rugby union’s second tier, the Championship, however the administrators are appealing the decision.
The league now looks set to complete its season will 11 teams, with growing concerns for the financial impact on the league.
