Wasps buy more time to seal a deal with investors
The Gallagher Premiership club has filed a second notice of intention to appoint administrators in a bid to let negotiations pan out with investors.
Last updated 5th Oct 2022
Wasps have bought more time in their bid to lift the financially stricken club out of crisis by filing a second notice of intention to appoint administrators.
They did this to give negotiations with investors more time to secure the long-term future of the club.
A statement issued by Wasps Holdings Limited revealed that talks are at "a relatively advanced stage" with possible investors.
The club is facing a winding-up petitions from HMRC over an unpaid tax bill of £2 million.
The Gallagher Premiership club is also struggling to repay a loan of £35 million that helped finance their move from High Wycombe to Coventry in 2014. It was due in May.
A spokesperson for Wasps Holdings Limited said: "A second notice of intention to appoint administrators has been filed to allow negotiations on securing its long-term future to continue and to protect the interests of the group.
"Since filing the original notice of intention on 21 September, a number of additional potential investors and funders have come forward.
"Discussions are now at a relatively advanced stage and we remain hopeful."
"Discussions are now at a relatively advanced stage and we remain hopeful of securing a deal that will allow the group, and the entities that sit within it, to move forward.
"We would like to thank all stakeholders for their engagement during this process and in particular the constructive support and approach provided by the Rugby Football Union and Premiership Rugby.
"This will continue to be vitally important as negotiations with interested parties proceed and we remain in regular dialogue with both organisations.
"While the financial circumstances facing the group are extremely challenging, we remain optimistic about a positive outcome and will keep our players, staff, supporters, partners, bond holders and suppliers updated as this process moves forward."
Failure to secure the finance needed to prevent administration could result in automatic relegation from the Premiership.
However, the Rugby Football Union has the discretion to reduce or waive any sanction if the insolvency was deemed to be beyond the control of the club, including in the event of a pandemic.