How Much Is Wasps Rugby Club Worth?
WouterDespite a 155-year history, Wasps rugby club has been struggling to keep afloat. The Midlands club has accrued more than £35 million in debts, while its brand has been damaged. The club, which has played in the English Championship for the last two seasons, has drawn interest from potential new owners.
Wasps has failed to meet the criteria set by the RFU, meaning it is not eligible to use the ‘exceptional circumstance’ clause. The RFU has suspended the club, but there are still hopes for a deal. In the meantime, Wasps administrators are considering ways to serve their creditors.
Wasps is the third Premiership side to enter administration in just three weeks. Worcester Warriors also fell into trouble in September. They owed millions of pounds to HMRC and failed to provide evidence of financial security. They were suspended from the Premiership last week.
The club owes a whopping PS35 million to bondholders, who invested after the rugby club acquired a 250-year lease on its stadium. The bondholders could face significant losses, while smaller creditors could also be owed significant amounts.
The team has also been hit hard by spiralling salaries. Wasps has been losing around US$201,000 a week for the past seven years. But they have been able to avoid bankruptcy by obtaining a government bailout. However, the debts still remain and the club has had to put up millions of pounds of public money in order to avoid collapse.
