Wasps bought 50% of Arena Coventry Limited in 2014
Wasps have asked for more time to sort out their financial problems, with a “number of potential investors and financiers” coming forward.
Wasps Holdings Limited, which owns the Premiership club and Arena Coventry Limited, has submitted a second notice of appointment of administrators.
The company said the move will “allow negotiations to continue to secure its long-term future.”
The club continue to fulfill matches and play at Northampton on Sunday.
A statement from Wasps Holdings Limited read: “Since the initial letter of intent was submitted on 21 September, a number of additional potential investors and financiers have come forward.
“The talks are now at a relatively advanced stage and we remain hopeful of reaching an agreement that will allow the group and the companies within it to move forward.
“We would like to thank all stakeholders for their engagement during this process, particularly for the constructive support and approach from the RFU (Rugby Football Union) and PRL (Premiership Rugby).
“This will continue to be crucial as negotiations with interested parties progress and we remain in regular dialogue with both organisations.
“Although the group’s financial situation is extremely challenging, we remain optimistic for a positive outcome and will keep our players, employees, supporters, partners, bondholders and suppliers informed as this process unfolds.”
Wasps won their last Premiership game in Bath on September 23, 39-31
The six-time English champions are trying to avoid a similar fate to Premiership rivals Worcester Warriors, whose season was suspended after taking office last week.
Wasps Holdings said Sept. 21 that filing a letter of intent to appoint administrators does not mean “the company is in administration.”
The club have been in talks with HM Revenue and Customs since August over an unpaid tax bill.
They also need funds to pay back some of the £35million in bonds that helped fund their move from London in 2014.
Wasps, who played in London in their amateur days, have had three homes since rugby union turned professional in 1996 and previously spent six years at Loftus Road with Queens Park Rangers before moving to High Wycombe.
Sports finance expert Dr. Dan Plumley, from Sheffield Hallam University, told the ` that you “want clubs to strive towards a model of self-sustainability”.
“In the past, clubs have been backed by wealthy owners and wealthy benefactors willing to cover some of the losses,” he said.
He said the “short-term nature” of professional team sport has created “acute pressure” on clubs and escaping this scenario is a “long-term solution”.
When asked about the overall health of the English game, Dr. Plumley added: “I think Premiership Rugby is a product that’s strong enough to survive. There is an attractive product for sale there and obviously the fans keep coming back to see the games.
“I don’t think there is a situation where Premiership rugby is threatened but there are some financial hurdles that need to be overcome in order to move forward.”
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