Wasps are ninth in the Premiership table after winning just one of their four games this season
Financially strapped Wasps have announced they will “probably” go into administration “within days”.
The Premiership club have twice given notice to bring in bankruptcy experts to help with their debts, which run into the tens of millions of pounds.
After Worcester last month, they are facing the second side, which will go into administration within a few weeks.
In a statement, Wasps Holdings Limited said they had worked “tirelessly” to secure the club’s future.
“We firmly believe that this is the right course of action,” the statement added.
The Coventry-based Wasps will not perform this Saturday’s Premiership game in Exeter after the news and say they “recognize that this is having an impact not just on our players, staff and supporters, but on the Exeter Chiefs and the broader one rugby community will have”.
Worcester was suspended and relegated to the championship for next season last week, a day after players and staff canceled their contracts when the association was dissolved.
The Warriors’ results have been scrapped and the Premiership – the top tier of English rugby union – reduced to 12 clubs for the remainder of the season, although the club is appeal against the penalties.
However, if Wasps went into administration, they would also face relegation.
Under RFU rules, any club that enters administration is automatically relegated the next season unless they can prove it was through no fault of their own.
With Championship clubs recently struggling to meet the minimum standards for promotion to the Premiership, the relegation of both clubs could result in a downsizing of the league, which could be detrimental to media rights.
ITV agreed a new deal with Premiership Rugby to broadcast a number of games including the Twickenham final on free-to-air television earlier this year.
After Worcester went into administration, Premiership Rugby chief executive Simon Massie-Taylor told ` Sport that “financial viability and visibility were a big issue” and said he had asked all clubs to get a “really clear picture.” “ to deliver their financial situation.
Wasps “don’t have enough money” to continue their operations
Wasps had hoped to raise fresh funds to pay off £35m in debt to bondholders after moving from London in 2014.
Despite saying talks are “ongoing” with interested parties, the club have been forced to take action.
“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,” the statement continued.
“Negotiations are underway to secure deals that will allow the men’s and women’s rugby teams, netball team and arena and related deals to move forward.
“However, it has become clear that there is likely 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 be completed shortly thereafter .”
Wasps’ decision came after it was revealed they “didn’t have enough money” to continue operations without new investment. Interested parties were asked for “bridging financing” to give the club enough time to find “a solvent solution”.
“Unfortunately, this has not been possible to date, although we will continue to pursue this until the very last opportunity,” the statement said.
The club’s official beer supplier, Heineken, said it had “increased stocks that had not been paid for” after being unable to find a “workable solution” following Wasps’ declaration of intent to appoint administrators.
Any change in administration would cast doubt on Wasps’ future at their home ground, the Coventry Building Society Arena.
Ownership of the CBS Arena is held by Coventry City Council, which granted Wasps a 250-year lease when the club bought the stadium’s operating company eight years ago as part of their move to the West Midlands.
The council have warned the club that Wasps could face bankruptcy proceedings lose ownership of the property.
Future ownership of the stadium is also in the spotlight after it was revealed that American billionaire John McEvoy is think about an offer to buy the site and its other tenant, Championship Football Club Coventry City.
In a statement, the Sky Blues said: “We are aware of today’s statement by the Wasps Group and remain in touch with the Wasps Group regarding the current situation.”
Exeter’s Maunder ‘really sorry’ for Wasps players
Jack Maunder was scrum-half when Exeter beat Wasps in the 2020 Premiership Final at Twickenham
Exeter scrum half Jack Maunder was in the middle of his pre-game media call ahead of the Wasps’ trip to Sandy Park when the news broke.
Maunder was part of the Exeter side defeated Wasps in the 2020 Premiership Final 19-13 when the Chiefs won a domestic and a European double.
“We know some of the guys from Worcester and Wasps, they’re guys who have been at the circuit for a long time,” Maunder, whose side will now play Bristol in a friendly on Saturday, told ` Sport.
“It’s a really weird feeling and I’m really sorry for these guys and these staff.
“They have a great lineup there at Wasps, they have some great coaches and it seems really sad.
“It’s just really tough for these guys and we’re not sure what’s going to happen with Wasps. It was really sad what happened with Worcester and I wish all these guys only the best of luck in the future.”
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