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Finance

Wasps follow Worcester Warriors into administration

Featured image credit: Lewis Clarke/CC BY-SA 2.0/Edited for size

Premiership rugby union club Wasps has today (Monday) been placed into administration following its suspension last week by the Rugby Football Union (RFU).

A statement from Wasps Holdings Limited confirmed that the company has ceased trading, with its affairs, business and property now being managed by Andrew Martin Sheridan and Rajnesh Mittal of FRP, its joint administrators.

Wasps Holdings Limited also operates the Wasps netball team. With the company in administration, 167 Wasps employees have been made redundant, including all members of the playing squads and coaching staff.

The company noted that Arena Coventry Limited and IEC Experience Limited, which operate the businesses at Wasps’ Coventry Building Society Arena, are not in administration and will continue to trade as normal.

CBS Arena is also used by Championship football club Coventry City, which confirmed yesterday that its home game against Sheffield United on Wednesday will go ahead as scheduled.

Earlier today, Wasps confirmed that its Premiership Rugby Cup match against Sale Sharks tomorrow had been cancelled following the RFU’s decision to suspend the club from all competitions.

Wasps withdrew from Saturday’s trip to Exeter Chiefs after all but admitting defeat in efforts to secure fresh investment before today’s deadline. The latest development means that all Wasps games have been cancelled and the club is unable to provide any refunds to ticket holders.

The only matches affected as a result of the administration are Wasps fixtures. Coventry games will still go ahead, along with Rugby League World Cup matches and music events.

Wasps announced last Wednesday that the club would be entering administration, which will lead to its relegation from the Premiership. Wasps had already twice filed notice of its intent to appoint administrators.

It has been reported that the club owes £35m (€40.8m/$40m) plus interest to bondholders as part of the agreement that financed its move to Coventry in 2014, along with £2m to HMRC.

Earlier this month, the RFU confirmed the suspension of Worcester Warriors from the Premiership and Premiership Rugby Cup for the remainder of the current campaign.

The Warriors had initially been placed into administration and suspended from playing last month after failing to provide the RFU with evidence of insurance cover, availability of funds to meet its monthly payroll, and a credible plan to take the club forward.