By Matt Hardy
Financially troubled Premiership rugby club Wasps could be taken over by a bid headed by former chief executive David Armstrong.
The club, who moved to Coventry from High Wycombe in 2014, are facing money woes in relation to tax owed to HMRC, bond repayments and other debt.
Sources close to the auction of the club said that the Armstrong bid, in association with investment firm Terminum Capital, could see the club valued at over £50m, with another £12m earmarked as working capital, according to City a.m. columnist Mark Kleinman.
It is thought that the bid could include the Coventry Building Society Arena, the stadium Wasps moved in to and share with Championship football’s Coventry City.
The club faced criticism over the summer due to the standard of their pitch following the Commonwealth Games sevens tournament which meant the tenant football club had to postpone a number of games.
The Premiership outfit admitted earlier this year that they were “pursuing different refinancing options” amid reports that they were struggling to pay £35m in bond payments to bondholders used to finance their move to the East Midlands.
Wasps are the second Premiership club after Worcester Warriors to teeter on the edge of administration – their fellow East Midlands club have been booted out of the league.
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