Financially troubled Wasps have announced they are “likely” to go into administration “within days”.
The Coventry-based Premiership club have filed notice on two occasions to get insolvency experts in to help with their debts, which run to tens of millions of pounds.
In a statement, Wasps Holdings Limited said they had been working “tirelessly” to secure the club’s future.
“We strongly believe it is the right course of action,” the statement added.
Wasps will not fulfil this Saturday’s Premiership game at Exeter following the news, saying they “recognise that this will not only impact on our players, staff and supporters, but also Exeter Chiefs and the wider rugby community”.
Wasps had been hopeful of securing new funding to help with a £35m debt owed to bond holders following their relocation from London in 2014, and HM Revenues and Customs pursuing them for unpaid taxes.
Despite saying talks with interested parties are “ongoing”, the club have been forced to take action.
“Since filing a notice of intention to appoint administrators on 21 September, 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,” the statement continued.
“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.”
Wasps’ decision was taken after revealing they have “insufficient cash” to carry on operations without new investment. Interested parties were asked to provide “bridging finance” to bide the club 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,” the statement said.
Any move into administration would throw doubt on Wasps’ future at their home stadium, the Coventry Building Society Arena.
The freehold of the CBS Arena is held by Coventry City Council, who granted Wasps a 250-year lease when the club bought the stadium’s operating company as part of their move to the West Midlands eight years ago.
The council have warned the club that any insolvency proceedings could see Wasps forfeit ownership of the ground.
The future ownership of the stadium is also under the spotlight following the news that American billionaire John McEvoy is considering a bid to buy the ground and its other tenant, Championship football club Coventry City.
In a statement the Sky Blues said: “We are aware of the statement by Wasps Group today, and we remain in contact with Wasps Group regarding the current situation.”
If Wasps do go into administration they would become the second top-flight rugby union club to do so in a matter of weeks, following Worcester Warriors’ suspension and relegation to the Championship for next season.
Exeter’s Maunder ‘really sorry’ for Wasps players
Exeter scrum-half Jack Maunder was in the middle of his pre-match media call before Wasps’ trip to Sandy Park when the news broke.
Maunder was part of the Exeter side that beat Wasps 19-13 in the 2020 Premiership final as the Chiefs won a domestic and European double.
“We know quite a few of the boys from Worcester and Wasps, they’re boys that have been around on the circuit for a long time,” Maunder, whose side will now play Bristol in a friendly on Saturday, told BBC Sport.
“It’s a really weird feeling and I just feel really sorry for those boys and those staff.
“They’ve got a great set-up there at Wasps, they’ve got some great coaches and it seems really sad.
“It’s just really tough for those boys and we’re not sure what’s going to happen with Wasps. It was really sad what happened to Worcester and I just wish all of those boys the best of luck moving forward.”
