Premiership Rugby club Wasps look set to enter administration within the coming days. The Coventry based club were initally hopeful of raising £35 million through funding, in order to pay bond holders money that they were owed after they moved from London in 2014.
Wasps Holding Limited released this statement earlier today, giving an update on their dire financial situation.
Since filing a notice of intention to appoint administrators on Sep 21, we have been working tirelessly to secure the long-term future for Wasps Holdings Limited, and all of the organisations and clubs that sit within the group.
Negotiations to secure deals that will allow the men’s and women’s rugby teams, netball team and the arena and associated business to move forward are ongoing. However, 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.
While the companies within the group all represent strong and viable businesses, the reality is that they have insufficient cash at this time to continue to fund operations until these complex negotiations have concluded. We have therefore 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.
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The club have also confirmed that they have withdrawn from their upcoming Gallagher Premiership game against Exeter Chiefs this weekend and could face relegation from the league
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. This was an extremely difficult decision to make and we recognise that this will not only affect our players, staff and supporters, but also Exeter Chiefs and the wider rugby community. However, we strongly believe it is the right course of action when, at this time, we are unable to meet our regulatory requirements in the absence of fully concluded deal negotiations.
We understand that this news will be disappointing and concerning for everyone involved. Our immediate focus will be on ensuring that all of our players and the staff of Wasps and the arena are fully updated and given the support they need.
While these are challenging times, we remain confident that new owners will be found that will allow the clubs and businesses within the Group to move forward.
In light of our current financial situation the Men’s team have withdrawn from this Saturday’s fixture against Exeter Chiefs.
Full statement 👉 https://t.co/0270jNM6Sa pic.twitter.com/ZVXd5Z6iOp
— Wasps Rugby (@WaspsRugby) October 12, 2022
Wasps' rich and long history
It's an extremely dark day for Wasps and Premiership rugby as a whole, with the second most successful side in the history of the competition entering administration. Wasps are also the oldest Premiership team in the competition, being founded back in 1867.
Over the years, we have seen some of the world's best represent the club on a global stage. The likes of Josh Lewsey, Craig Dowd, Simon Shaw, Fraser Waters, Laurence Dallaglio and more have played for the historic club over the years.
Wasps also won the European Cup twice in four years back in 2004 and 2007. The thought of Wasps potentially being relegated or even discontinued is a scenario that no rugby fan will want to see.
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