“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 said.
Last Updated: 21/09/22 8:50pm
Wasps Holdings Limited are the ultimate holding company of the group including Wasps Rugby Football Club and Arena Coventry Limited
Wasps Holdings Limited have filed a ‘notice of intention’ to appoint administrators in order to protect the interests of the group, which includes Wasps Rugby Football Club and Arena Coventry Limited.
In a statement shared with Sky Sports, Wasps Holdings Limited said the measure provides a period for negotiations to continue to take place with interested parties who could secure its future.
“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 said.
“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.”
The crisis has arisen due to Wasps’ difficulty in repaying the £35 million 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.
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.
The Rugby Football Union confirmed urgent talks are ongoing to clarify the club’s current situation.
An RFU statement read: “The RFU is in dialogue with Wasps, we will work with them to understand the current action, their sustainability plans and what the next steps will be.”
Wasps won their opening round of the Premiership Cup against Newcastle Falcons on Tuesday but have lost their first two games of the Gallagher Premiership season. The team travel to Bath Rugby on Friday night for Round Three.
