Wasps have appointed administrators in order to provide a “period of grace” for negotiations to continue over the future of the club.
The Times reported on Wednesday that Wasps have filed notice in the High Court of its intention to appoint an administrator, which could result in the club’s relegation from the Gallagher Premiership.
HM Revenue and Customs are set to issue a winding-up order against Wasps over unpaid tax, after the club failed to pay back a £35million bond from 2015 that was down for repayment last May.
Wasps have issued a statement to Coventry Live in response to the reports, and stressed that the club is not yet in administration and that negotiations with interested parties are ongoing.
Wasps issue a statement in response to reports of administration.
“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,” the statement reads.
“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.
“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.”
☹️ Our thoughts are with the players, staff and supporters of @WaspsRugby tonight.
We know what you are all going through and the concerns you have.
— Worcester Warriors (@WorcsWarriors) September 21, 2022
Worcester Warriors are also in financial trouble.
Wasps are not the only Gallagher Premiership club in serious trouble, as Worcester Warriors have been given until 5pm on Monday by the RFU to prove the club’s financial viability.
Worcester are £25 million in debt and a number of players and staff are yet to receive their full salaries for the month of August, although negotiations over the sale of the club are ongoing.
Should the Warriors fail to prove to the RFU by Monday that insurance cover is in place, that there are enough funds to cover the monthly payroll and that there is a credible plan to take the club forward, Worcester will be suspended from all competitions.