Wasps Enter Administration – How Much Do They Owe?
WouterDuring the last two years Wasps have struggled with a number of debts. They have a PS35m bond from 2015, PS112.3 million in outstanding loans and PS2m in unpaid taxes to HMRC.
Wasps have been in talks with HMRC about paying back the PS2m. They also want to find a way to repay the PS35m bond.
Wasps are now owed PS35m plus interest by the bondholders. These funds were raised in 2014 to help finance the move from London to Coventry. The bond has a maturity date of May 2022. Despite the deadline approaching, Wasps have not been able to repay the bond.
The stadium, hotel and casino did not make a profit. This was due to a lack of events. However, Wasps have been able to continue using consultants despite their financial crisis. They have also opened a new training ground in Henley-in-Arden in September 2021.
Wasps are the second Premiership side to enter administration in a matter of weeks. Worcester Warriors were thrown out of the top flight last week after failing to find a buyer.
Wasps have also made 167 staff redundant. The club is in the running to be suspended from the league and relegated to the second tier Championship. It would be in line with Premiership rules.
Wasps owe PS35m plus interest to the bondholders and PS2m in unpaid taxes to the HMRC. The statement said action was taken to secure the long-term future of the group.
