By Prof Dr Ian Blackshaw
Wasps, a famous Rugby Union Football Club, based in Coventry, United Kingdom, has been suspended from the Rugby Union Football (RF) Premiership on announcing that it is going into administration.
It has debts of some £35 million and also owes taxes to HMRC (Her Majesty’s Customs and Revenue), the UK Tax Authority.
On going into administration, under RFU Rules, the Club will face relegation, unless it can prove that it was a no-fault insolvency.
The fate of Wasps comes just two weeks after Worcester Warriors also went into administration (previously noted on this website).
Wasps stated that it has been working “tirelessly” to secure the Club’s financial future.
The RFU stated that:
“The RFU will continue to work with the Club, PRL and any potential administrator or future investors to find the best possible outcome for the Club.”
According to commentators, the finances of English Rugby Union Football, the Clubs are privately owned, are not in good shape, and, therefore, other Clubs may face the same situation as Wasps and Worcester Warriors in future.
A grim situation all round!