The Coventry club, over-indebted, was suspended from all competition last Wednesday by the English federation. It should be relegated to the second division.
The holding company holding the English rugby team Wasps announced Monday its placement in receivership, which should lead to the relegation of the club, already suspended from all competition last Wednesday by the federation. “Wasps Holdings Limited was placed in receivership on October 17, 2022 and immediately ceased operations“, Indicates a press release from the English club, in the grip of serious financial difficulties and which has been looking for a buyer for weeks.
Two administrators have been appointed andunfortunately, (they) were forced to immediately dismiss 167 employees, including all members of the workforce and staff“Said the Premiership in a separate statement. “It’s a dark day for English rugby and we know it will be dire news for all Wasps players, staff, former players, sponsors and the thousands of supporters around the world.said Andrew Sheridan, one of the directors, quoted in the Premiership statement.
Failure to repay a loan of 40 million euros
«We remain in discussions with interested parties and we are confident that an agreement can be reached to allow Wasps to continue.“, he however underlined. On Wednesday, the Coventry-based club had been suspended from all competition by the RFU after announcing they had withdrawn from their scheduled game on Saturday against Exeter and were “probable“that he be placed in receivership”in the coming days“. According to the press, the club had notably defaulted on the repayment of a loan of 40 million euros scheduled for last May.
It should experience the same sporting fate – that is to say relegation – as the Worcester Warriors, another club in the elite of English rugby which had been suspended at the beginning of the month after the liquidation of the holding company which controlled it. The Midlands club, from which the tax authorities notably claimed nearly 7 million euros, will be relegated to the Championship (2nd division), where it will be able to start the 2023-2024 season.
But, unlike Worcester, which was a “small” team, the Wasps are a monument to English rugby, with six league titles to their name, including four between 2002 and 2008, and two European championship titles (2004, 2007 ). They had finished top of the regular phase again in 2016-2017 and 2nd in 2019-2020, losing both years in the final against the Exeter Chiefs.