Wasps rugby club has been suspended from the Gallagher Premiership Rugby League, the RFU has said, after it emerged the club is likely to “enter administration in the coming days”.
The club announced earlier that it had withdrawn from this Saturday’s Premiership match against Exeter, amid a deepening a crisis within top flight English rugby.
Its statement said: “It has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group, and it is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter.
“In light of the current situation, we have therefore taken the decision to withdraw the Wasps men’s team from this Saturday’s league fixture against Exeter Chiefs.”
Now the RFU has confirmed the club’s suspension from the Premiership, adding: “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.”
It marks a low for the domestic game as rivals Worcester are already in administration and face relegation next season after being suspended from the Premiership for the rest of the league campaign.
Wasps has been pushed to the brink of financial ruin by a debt pile that includes an unpaid tax bill.
The club’s parent company, Wasps Holdings, filed a notice of intention to appoint FRP Advisory, a restructuring firm, as administrator on 21 September. This was followed by a second such notice last week.
They gave the club 10 days of breathing space from creditors as it sought to find a way through its financial troubles.
The statement by Wasps suggested there was hope that a new buyer would take over once the club entered administration.
Sky News revealed at the weekend that David Armstrong, a former Wasps chief executive, was working with investment firm Terminum Capital on a bid to buy the club and its stadium.
Exhibitions group NEC later lodged a bid for the Coventry Building Society Arena, the stadium the club shares with Coventry City FC, though Sky News understood that its interest did not extend to the club itself.
Wasps was founded in 1867 in Hampstead, north London, but its journey away from London and the southeast to Coventry has not proved successful.
The move 80 miles north of its last home, in High Wycombe, alienated the fan base and its subsequent financial struggles prompted an exodus of valuable players this year.
https://news.sky.com/story/wasps-rugby-club-likely-to-enter-administration-in-coming-days-12718780
