London, Oct 12 (AFP\/APP): 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.<\/p>\n
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.<\/p>\n
The four-time Premiership champions had already withdrawn from Saturday’s scheduled Premiership fixture against Exeter as their financial troubles mount.<\/p>\n
Unlike Worcester, Wasps have not yet been relegated from the top-flight as a result of their cash crisis.<\/p>\n
Wasps can reapply for the suspension to be lifted if they are able to demonstrate the means to pay their rugby creditors.<\/p>\n
In a statement, the Rugby Football Union said: “The RFU’s Club Financial Viability Group has met this evening and confirmed that Wasps are suspended from the Gallagher Premiership.<\/p>\n
“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.<\/p>\n
“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.”<\/p>\n
Wasps signalled their intention to appoint administrators last month as they face a winding-up order from authorities over \u00a32 million ($2.2 million) in unpaid tax.<\/p>\n
“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.<\/p>\n
“It is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter.<\/p>\n
“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.”<\/p>\n
Former Newcastle United owner Mike Ashley is among those rumoured to be among the interested parties looking to buy Wasps.<\/p>\n
Wasps’ financial crisis has been sparked by a failure to meet a May deadline to repay \u00a335 million ($40 million) in bonds, which helped finance their relocation to Coventry from London in 2014.
\nThere 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 \u00a3500 million.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
London, Oct 12 (AFP\/APP): 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 […]<\/p>\n
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