Wasps: Premiership club to appoint administrators ‘to protect club interests’

The Wasps have a 250-year lease on the Coventry Building Society Arena

The Wasps have announced in the High Court that they intend to appoint administrators “to protect the interests of the club”.

Wasps Holdings Limited, which includes the Premiership club and Arena Coventry Limited, said the move “does not mean the business is in administration”.

He said he would spend a “crucial period of grace” as he tries to “secure the long-term future of the team”.

The move was taken amid “a threat of future action from HMRC”.

Wasps said they were speaking to HM Revenue and Customs last month about an unpaid tax bill.

The Coventry club said earlier this month that they were close to getting the funds to repay some of the £35m bonds that helped finance their move from London in 2014.

They were unable to meet the May deadline and were looking for refinancing options.

The news also came on the same day as the Rugby Football Union has warned that the Worcester Warriors will be suspended from all competitions unless they provide a “credible” financing plan by Monday, September 26.

Wasps Holdings Limited said in a statement that negotiations with “a number of interested parties” “have been ongoing for some time, are at an advanced stage and we are hopeful of reaching an agreement”.

“In the meantime, the day-to-day operations of the business remain unaffected, and we will continue to support our players, staff, supporters, voucher holders and suppliers, and keep them fully updated during what we believe will be a worrying time,” he added.

The RFU has confirmed that it is in dialogue with Liztor, and will “work with them to understand current action, sustainability plans and what the next steps will be”.

Under RFU rules, if insolvency occurs after the start of the season, relegation is the result, unless the club succeeds with a “no-fault” application – proving they are not truly to blame for the financial crisis.

The situation has been further complicated by England’s relegation from the top flight due to the coronavirus pandemic.

Wasps, two-time European champions in 2004 and 2007, have lost their first two league games, away at Gloucester and at home to Bristol.

But the young side He beat Newcastle in the Premiership Cup on tuesday

Wasps visit Bath in the Premiership on Friday, September 23.

The Wasps played in west London in their amateur days, but have had three homes since rugby union turned professional in 1996, initially sharing Loftus Road with Queens Park Rangers for six years.

They moved to High Wycomber for the first time in December 2014, relocating to the Ricoh Arena; They have since moved to the Coventry Building Society Arena.

The club has delayed raising £35m in April 2015 to help bondholders, who each invested at least £2,000.

Wasps Holdings’ latest set of accounts, covering the financial year ending June 2021, showed a loss of £18.5m over the two-year period, with liabilities of £54.7m.