Wasps are the latest English club who are fighting for their future after they announced that a notice of their intention to appoint an administrator has been filed with the High Court.
The crisis has arisen due to Wasps’ difficulty in repaying the £35million bond that was raised to help finance their relocation from High Wycombe to Coventry in 2014 and that was due in May.
While they are confident that they will secure the finance needed to prevent administration, failure to do so could result in automatic relegation from the Gallagher Premiership.
— Premiership Rugby (@premrugby) September 18, 2022
However, the Rugby Football Union has the discretion to reduce or waive any sanction if the insolvency was deemed to be beyond the control of the club, including in the event of a pandemic.
“Due to the impending threat of action from HMRC, Wasps Holdings Limited, the ultimate holding company of the group including Wasps Rugby Football Club and Arena Coventry Limited, have taken the difficult decision to file a notice of intention to appoint administrators in order to protect its interests,” a statement from Wasps Holdings Limited read.
“This measure does not mean the business is in administration but provides a crucial period of grace to continue negotiations with a number of interested parties to secure the long-term future of the group.
“These negotiations have been going on for some time, are in advanced stages and we are hopeful of securing a deal.
“In the meantime, the day-to-day operations of the business are unaffected, and we will continue to support our players, staff, supporters, bond holders and suppliers, and keep them fully updated during what we appreciate will be an unsettling time.”