By Matt Hardy
Wasps, one of English rugby’s most decorated clubs with a history dating back 155 years, has gone into administration as the Premiership yesterday lost its second team in a month.
The Coventry-based side admitted last week that they were likely to be handed over to administrators within days and that came to pass on Monday afternoon, leaving 167 players and staff redundant.
“This is a dark day for English rugby, and we know this will be devastating news for every Wasps player and member of staff, past players, sponsors, and their thousands of supporters throughout the world, and anyone who has ever been involved with this great club,” Andrew Sheridan, joint administrator, of FRP Advisory, said.
“Our immediate focus is on supporting those who have lost their jobs. This will be an incredibly challenging time for every individual, and we will be assisting them in making claims to the redundancy payments service.
“We remain in ongoing discussions with interested parties and are confident that a deal will be secured that will allow Wasps to continue.”
It marked another sad day for the Premiership as the five-time domestic and double European champions are now likely to be expelled from the top flight amid uncertainty over their future.
They are set to join Worcester in the RFU Championship next year, assuming the clubs are able to return to a firmer financial footing.
Wasps’s problems stem from their move to the Midlands in 2014, when they financed the 80-mile relocation with a £35m bond issue that they have not been able to pay back in full. In addition to this they have an outstanding tax bill in the millions.
Late last night the parliamentary committee for the Department for Digital, Culture, Media and Sport announced its intention to question Rugby Football Union and Premiership Rugby representatives over how the domestic game landed in such a financially precarious position.
“The fact that two of the country’s top clubs have now suffered the fate of falling into administration raises serious concerns about the future of the sport and its financial viability,” committee chair Julian Knight MP said. “The RFU and Premiership Rugby have acknowledged the need to set a more sustainable path for club rugby. We will be pressing them to ensure they are putting the foundations in place to guarantee the health of the sport from the top level right down to the grassroots.”
The Premiership now faces calls to reschedule the calendar given two teams have disappeared from the fixture list. Leicester Tigers’ next three weekends are fixture-free given they were due to have a bye as well as play Wasps and Worcester.
In a similar situation to the one that occurred down the M5 at Worcester, the Wasps players are now free agents. Joe Launchbury has been linked to London club Harlequins but there is a reported allowance for players from the two clubs to move abroad – to clubs who can afford to add free players to their rosters – and still be in contention for England selection.
Yesterday’s announcement has been days in the making, but it was yet another blow for a domestic game seemingly falling flat. Most parties have said transparency and change is required for growth, but how quickly that materialises could be the difference between stability and the next club ceasing its operations.
The post Wasps enter administration with MPs set to question rugby’s chiefs appeared first on CityAM.
