Friday, December 2, 2022

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Wasps are set to enter administration and be suspended from the Gallagher Premiership

Wasps will follow Worcester Warriors in being suspended from the Gallagher Premiership, with the Coventry-based club poised to go into administration.

sports mail understands that Wasps players and staff were briefed on the club’s financial plight at an emergency meeting on Wednesday.

A statement released by Wasps confirmed they pulled out of their planned clash with Exeter this weekend and it is “likely they will join administration in the coming days”.

The club have canceled their press conference scheduled for Wednesday afternoon on another dark day for English rugby. The Premiership is frankly in a state of chaos.

On September 21, Wasps told the High Court of their intention to appoint a trustee, with the club fighting to repay a substantial bond on their home in the Coventry Building Society Arena.

A second notification to appoint an administrator was filed on October 4, but the club was unable to find a viable solution to move forward.

Wasps said in a statement on Wednesday: “Since filing a letter of intent to appoint administrators on September 21, we have worked tirelessly to secure the long-term future of Wasps Holdings Limited and all organizations and clubs that form the group.

‘Negotiations are underway to secure agreements that will allow the men’s and women’s rugby teams, netball team and arena and related businesses to move forward.

‘However, it has become clear that there is probably not enough time to find a solvent solution for the companies within the group and it is therefore likely that they will file for bankruptcy in the coming days, with deals to close shortly thereafter . ‘

Worcester became the first Premiership club to enter administration last month. They were soon suspended from the Premier League. The same fate will likely befall wasps in the coming days.

Their statement continued: “While the companies within the group all represent strong and viable businesses, the reality is that they do not currently have sufficient cash to continue operations until these complex negotiations are completed.

‘We have therefore asked potential financiers and investors to provide bridging financing in order to have enough time to find a solvent solution. Unfortunately this has not been possible so far, although we will continue to pursue this until the very last opportunity.

“In light of the current situation we have therefore made the decision to withdraw the Wasps men’s team from this Saturday’s league game against the Exeter Chiefs.

“This has been an extremely difficult decision and we recognize that it will not only have an impact on our players, staff and supporters, but also on Exeter Chiefs and the wider rugby community.

‘However, we strongly believe that this is the way forward if, at this time, we are unable to meet our regulatory requirements as deal negotiations are not fully completed.

“We understand that this news will be disappointing and worrying for everyone involved.

“Our immediate focus will be to ensure that all of our players and Wasps and Arena staff are fully informed and have the support they need.

“While these are difficult times, we remain hopeful that new owners will be found that will enable the clubs and businesses within the group to thrive.

“We will not be making any further statement at this time.”

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