Wasps Going Into Administration

Earlier this week Wasps, the Gallagher Premiership rugby club, announced they were going into administration. The move was made last Monday, when Wasps Holdings Limited filed a notice of intention to appoint administrators.

After the announcement, the club was suspended from the Premiership, and all its other tournaments. It is now expected to be relegated to the Championship. The RFU Club Financial Viability Group (CFVG) confirmed this. The club will also face a parliamentary inquiry.

It was unclear how Wasps were going to meet their regulatory requirements without a deal. There are reports that Terminium Capital is offering PS50 million for the club. However, it is not the only factor. It is also said that Wasps will need to show new owners they can secure the club’s security. The club’s principle shareholder, Mick Crossan, has revealed that he is planning to sell his shares to the new owners.

Wasps were in the process of building a stadium at a site on the green belt in Coventry, and local residents campaigned against the deal. The stadium deal was put on hold in July 2011, when the local councillors who voted in favour of the deal lost their seats.

The administrators confirmed that the Coventry Building Society Arena would continue trading. They said the club was seeking bridging finance to buy time until a solvent solution could be found.

Wasps have debts of tens of millions of pounds. Players and staff have been made redundant.

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