Cash-strapped Wasps Suspended From English Premiership

Wasps became the latest cash-strapped club to be suspended from the crisis-torn English Premiership on Wednesday after confirming they are "likely" to enter administration

London, (APP - UrduPoint / Pakistan Point News - 13th Oct, 2022 ) :Wasps became the latest cash-strapped club to be suspended from the crisis-torn English Premiership on Wednesday after confirming they are "likely" to enter administration.

In another colossal blow for the English domestic game, Wasps are the second Premiership club to be hit with a suspension due to financial difficulties following Worcester last month.

The four-time Premiership champions had already withdrawn from Saturday's scheduled Premiership fixture against Exeter as their financial troubles mount.

Unlike Worcester, Wasps have not yet been relegated from the top-flight as a result of their cash crisis.

But, under Rugby Football Union rules, Wasps would be condemned to relegation if they go into administration, unless they can prove a "no fault" solvency event because of the global pandemic.

It is understood that Wasps players and staff, who now face uncertain futures, were informed of Wednesday's developments during a lunchtime meeting.

In a statement, the RFU said: "The RFU's Club Financial Viability Group has met this evening and confirmed that Wasps are suspended from the Gallagher Premiership.

"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 (Premiership Rugby) and any potential administrator or future investors to find the best possible outcome for the club." Wasps' financial crisis has been sparked by a failure to meet a May deadline to repay 35 million ($40 million) in bonds, which helped finance their relocation to Coventry from London in 2014.

The club signalled their intention to appoint administrators last month as they face a winding-up order from authorities over 2 million ($2.2 million) in unpaid tax.

- Bleak future - "It has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group," Wasps, two-time European champions, said in a statement on Wednesday.

"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." Former Newcastle United owner Mike Ashley is among those rumoured to be among the interested parties looking to buy Wasps.

They can reapply for the suspension to be lifted if they are able to demonstrate the means to pay their rugby creditors.

Wasps have been ever present in the Premiership since the competition began 25 years ago and have fielded some of England's most well-known players during rugby union's professional era.

The 2003 World Cup-winning England squad included five Wasps players in Lawrence Dallaglio, Josh Lewsey, Stuart Abbott, Simon Shaw and Joe Worsley.

There are fears that other English Premiership clubs could also face a bleak future -- the collective debts of all 13 top-flight clubs, including Worcester and Wasps, are estimated at more than 500 million.

Worcester's players and staff have had their contracts terminated with the club set to be relegated from the Premiership after being suspended for the rest of the campaign.

Exeter director of rugby Rob Baxter suggested on Wednesday that a move to a 10-team Premiership is the best way forward for both financial stability and to ease the physical burden on players.

"A league of about 10, home and away, with their international commitments, starts to sound very common sense," said Baxter.

"You've got less home games, but then hopefully you attract bigger crowds to a better spectacle if you are watching the international players playing every single week."