Premiership founding members Wasps have won the title six times – and were European champions in 2004 and 2007
Wasps have sacked 167 players and staff after becoming the second club in the Premiership to go into administration in 21 days.
The Coventry-based club were suspended from the Premiership last week.
It has now been confirmed that they have suffered the same fate as Midlands rivals Worcester and will be relegated.
But Arena Coventry Limited, which runs the Wasps-owned Coventry Building Society Arena, could still avoid going bankrupt.
Whilst Wasps Holdings Limited is the company that has actually entered administration, ACL, also part of Wasps, has submitted a new letter of intent to appoint administrators to the High Court in London.
This would give ACL, which holds Coventry City Council’s lease to operate the stadium, a two-week deadline, giving time to find further funds to keep the CBS Arena operational and the home games of Coventry City’s stadium tenants still played can become .
Rugby League World Cup organizers said they had “received written assurances” Friday’s match between Australia and Scotland at the stadium would also go ahead as scheduled.
ACL said in a statement: “Arena is a profitable standalone business with tremendous potential and as such is attracting strong interest from a number of parties.
“We have submitted a letter of intent to appoint administrators and will seek to use this period to finalize a deal with a venue operator.
“It would also allow the arena to continue generating funds and it would also mean the Rugby League World Cup match and the Coventry City fixtures go ahead as planned, which is in everyone’s interest.”
You think this can’t happen – Blackett
Wasps were founding members when the first national rugby union league was formed in 1987 – and also when the professional era began in 1996 and they became the first champions.
And in 20 years of Twickenham Premiership finals, they’ve lifted the trophy four times, including the top three.
While they have a loyal, long-standing, still more London-dominated fanbase, their nomadic existence from Sudbury to Shepherd’s Bush to High Wycombe hasn’t helped draw the hoped-for crowds to Coventry.
Their initially encouraging attendance figures, supplemented by ticket promotions, have declined at a time when those of their stadium leaseholders, Coventry City, were on the rise.
After weeks of uncertainty and rumors about the club’s future, head coach Lee Blackett, his players and the rest of the staff discussed their immediate fate at meetings held both at the CBS Arena and at the Wasps’ training ground in Henley-in-Arden informed.
“A lot of people are really down,” Blackett told ` CWR. “You think that something like this can’t happen at a club of this size, but unfortunately it happened. And it’s disgusting to see the staff so upset.
“You realize it’s not just the players and staff, it’s the families behind them, their kids, their parents, everyone you see was standing on the sidelines when you first see a player.
“We’ve seen everything that happened in Worcester – and we’ve always hoped for positive news, but that’s the reality. The sad day has now come and while things are going we now hope for more positive news in the coming weeks, it is difficult to look past this day at the moment.
“We’ve worked so hard as a group and now it looks like we’re going to break up, which is really sad.
The Coventry Building Society Arena has been the home of Wasps since December 2014
Wasps Holdings Limited in administration
Wasps Holdings Ltd is the holding company for Wasps Men, Wasps Women, Wasps Netball, their associated coaching and support teams, and their respective academies and paths.
Andrew Sheridan and Raj Mittal, partners at specialist management consultancy FRP, confirmed in a statement that Wasps Holdings Limited has ceased trading with immediate effect – and that they have been appointed joint administrators.
“Unfortunately, upon their appointment, the joint administrators had to lay off 167 staff, including all members of the playing teams and coaching staff,” the statement said.
“A small number of employees have been hired to assist in the proper running of the business and the operation of the CBS Arena, which is unaffected by this administration and is continuing its normal operations.”
Joint Administrator Sheridan said: “This is a dark day for English rugby.
“We know this will be devastating news for every Wasps player and staff, former players, sponsors and their thousands of supporters around the world and anyone who has ever been associated with this amazing club.
“Our immediate focus is to support those who lost their jobs this morning. This is going to be an incredibly challenging time for any individual and we will support them in making claims on the layoff payment service.
“The board and many others at the club have worked tirelessly over the last few weeks to find a solution that would allow the club to move forward and it is very unfortunate that there is not enough time for that.
“However, we remain in ongoing discussions with interested parties and are confident that an agreement will be reached that will allow Wasps to proceed.”
Wasp players were told the news on Monday afternoon at their Henley-in-Arden training ground
The life of wasps – how did it come about?
- 1923 – Having started life on Finchley Road, Wasps move to their first permanent home in west London at Repton Avenue, Sudbury.
- 1996 – Sudbury Ground is sold for residential use and the club move across west London to share QPR’s home on Loftus Road.
- 2002 – Wasps move further west again to share Wycombe Wanderers’ home in Adams Park.
- 2007 – Wasps play Coventry for the first time and begin their Heineken Cup defense against Munster in front of a crowd of 21,506 at the Ricoh Arena.
- September 2014 – First rumors circulate that Wasps could leave High Wycombe for Coventry – just as Coventry City returns to the Ricoh Arena after 14 months in exile in Northampton following a rent dispute.
- Oct 2014 – Coventry City Council unanimously agrees the sale of shares in Arena Coventry Ltd. to wasps.
- December 2014 – Wasps move to Coventrywho take over the landlords of the Ricoh Arena with the help of a loan from Coventry City Council.
- June 2022 – Wasps submitted a £13million funding application to the West Midlands Combined Authority.
- 08/18/2022 – Wasp owner gives up training ground when problems increase off the field
- 08/19/2022 – Wasps confirm dialogue with HMRC over unpaid tax bill
- Sept 5, 2022 – Wasps are telling investors they are about to secure funds to pay off bondholdersdue in May after raising £35m to buy the Ricoh Arena in 2014.
- 09/21/2022 – Wasps file a complaint with the High Court in London that they intend to appoint administrators to “protect the interests of the club”.
- Oct 4, 2022 – Wasps in conversation with potential investors
- 10/11/2022 – American billionaire John McEvoy is considering an offer for Coventry City and CBS Arena
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