London Wasps to appoint administrators to 'protect club's interests'

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Wasps have filed notice in the High Court that they intend to appoint administrators to "protect the club's interests"



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

It said it will provide "a crucial period of grace" as it tries to "secure the long-term future of the group".

The measure was taken amid an "impending threat of action from HMRC".

Wasps said last month they were in talks with His Majesty's Revenue & Customs over an unpaid tax bill.

The Coventry-based club said earlier this month they were close to securing funds to repay some of the £35m in bonds which helped finance their relocation from London in 2014.

They were unable to meet a May deadline and were seeking refinancing options.

Wasps' CBS Arena is also home to Championship football club Coventry City, who moved back to play there in August 2021.

A statement from Wasps Holdings Limited said negotiations with "a number of interested parties" have been "going on for some time, are in advanced stages and we are hopeful of securing a deal".

"In the meantime, the day-to-day operations of the business are unaffected, and we will continue to support our players, staff, supporters, bond holders and suppliers, and keep them fully updated during what we appreciate will be an unsettling time," it added.

The RFU confirmed it is in dialogue with Wasps, and "will work with them to understand the current action, their sustainability plans and what the next steps will be".

Under RFU rules, if insolvency occurs after the season has started, relegation is the consequence, unless the club succeeds with a 'no-fault' application - effectively demonstrating the financial crisis was not their fault.

The situation is further complicated by the fact relegation from England's top tier has been put on hold in the wake of the coronavirus pandemic.

Wasps, twice European champions in 2004 and 2007, have lost their opening two Premiership matches, away at Gloucester and at home to Bristol.

Six times English champions, including in three successive years from 2003 to 2005, Wasps are scheduled to visit Bath in the Premiership on Friday, 23 September.

Bath said on Wednesday evening that Friday's match "remains unaffected and will go ahead as planned".

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

They first moved to High Wycombe before, in December 2014, relocating to the Ricoh Arena - since rebranded the Coventry Building Society Arena.

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

The most recent set of accounts for Wasps Holdings, which covered the financial year ending June 2021, showed an £18.5m loss over a two-year period, with liabilities of £54.7m.

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Wasps: Coventry City Council 'may have right to force stadium ownership' forfeit

Wasps could be forced to forfeit ownership of the Coventry Building Society Arena after initiating administration proceedings.

The BBC has discovered that Coventry City Council, as freeholder of the stadium, has the right to force Wasps to forfeit the lease "if the tenant enters into some kind of insolvency regime".

Notices of intention to appoint administrators have been filed with the Insolvency and Companies Court against parent company Wasps Holdings Limited, Arena Coventry Limited, and the company which holds the lease - Arena Coventry Ltd (2006).

The court action provides a 10-day grace period protecting Wasps against action from creditors, including HMRC, and bondholders who are owed £35m by the club.

But the council says there are restrictions around activating the forfeit clause - and it is not clear if a notice of intention to appoint administrators is sufficient for the clause to be activated.

A statement from Coventry City Council said: "It is true the lease may give rise to a right to forfeit if the tenant enters into some kind of insolvency regime but there are restrictions on that.

"We continue to monitor the situation and will act in the best interests of Coventry City Council and the arena asset.

"We are closely monitoring the situation and we are engaging with advisors and some potentially interested parties if requested as part of the process, in line with our role and responsibilities as freeholder of the asset."

If the council was to recover the lease, it could have huge implications for thousands of bondholders whose investments were secured against its value.

Wasps continue to insist they remain hopeful of securing the investment they need to avoid administration, despite filing second notices to extend the grace period on Tuesday.

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The city council should never have got involved in the building of the stadium in the first place, it was guaranteed to end in disaster (like every other city council project).

I said so at the time in what was then the Coventry Telegraph Forum.

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Makes two of us, Dutchman.

I see nothing but problems ahead.

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Wasps: Premiership club 'likely' to go into administration 'within days'



Financially troubled Wasps have announced they are "likely" to go into administration "within days".

The Coventry-based Premiership club have filed notice on two occasions to get insolvency experts in to help with their debts, which run to tens of millions of pounds.

In a statement, Wasps Holdings Limited said they had been working "tirelessly" to secure the club's future.

"We strongly believe it is the right course of action," the statement added.

Wasps will not fulfil this Saturday's Premiership game at Exeter following the news, saying they "recognise that this will not only impact on our players, staff and supporters, but also Exeter Chiefs and the wider rugby community".

Wasps had been hopeful of securing new funding to help with a £35m debt owed to bond holders following their relocation from London in 2014, and HM Revenues and Customs pursuing them for unpaid taxes.

Despite saying talks with interested parties are "ongoing", the club have been forced to take action.

"Since filing a notice of intention to appoint administrators on 21 September, we have been working tirelessly to secure the long-term future for Wasps Holdings Limited, and all of the organisations and clubs that sit within the Group," the statement continued.

"Negotiations to secure deals that will allow the men's and women's rugby teams, netball team and the arena and associated business to move forward are ongoing.

"However, it has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group, and it is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter."

Wasps' decision was taken after revealing they have "insufficient cash" to carry on operations without new investment. Interested parties were asked to provide "bridging finance" to bide the club enough time for "a solvent solution" to be found.

"Regrettably, this has not been possible to date, although we will continue to pursue this until the very last opportunity," the statement said.

Any move into administration would throw doubt on Wasps' future at their home stadium, the Coventry Building Society Arena.

The freehold of the CBS Arena is held by Coventry City Council, who granted Wasps a 250-year lease when the club bought the stadium's operating company as part of their move to the West Midlands eight years ago.

The council have warned the club that any insolvency proceedings could see Wasps forfeit ownership of the ground.

The future ownership of the stadium is also under the spotlight following the news that American billionaire John McEvoy is considering a bid to buy the ground and its other tenant, Championship football club Coventry City.

In a statement the Sky Blues said: "We are aware of the statement by Wasps Group today, and we remain in contact with Wasps Group regarding the current situation."

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Coventry City Council has 'no plans' to offer Wasps financial support



Coventry City Council has rejected claims it plans to offer a financial support package to Wasps. It was reported that a meeting had been called for Labour Councillors to vote this evening on a financial package to help Wasps 'stave off' administration.

Two hours after the reports surfaced, the authority took to its Twitter account to set the record straight. It said: "Contrary to inaccurate media reports, there are NO plans to offer a financial support package to help #WaspsRugby stave off administration."

On Wednesday, Wasps Holdings Limited, the company that owns the rugby club, announced it was 'likely' to go into administration in the coming days, with confirmation set to follow on Monday in court. A statement explained there was 'insufficient cash at this time to continue to fund operations' while negotiations over a takeover or fresh investment were taking place.

Attempts to gain bridging finance from investors were not completed in time. Wasps subsequently withdrew themselves from tomorrow's game against Exeter Chiefs and were suspended from the Gallagher Premiership by the RFU.

BBC CWR reported that confirmation of administration - which would result in Wasps' relegation from the top flight - was not a foregone conclusion. "Councillors on Coventry City Council have been called to an emergency meeting tonight where it's understood they will vote on signing off a financial support package to help Wasps stave off administration," the media outlet said.

"The meeting is believed to be scheduled for 6pm. If the group agrees to sign off the package it will not be taken to full council for a vote and will be signed off immediately and in private."

BBC reporter Simon Gilbert had said on Twitter: "This is all being done behind closed doors and in private. Just as the Arena bail out of 2013 was. That ended in judicial review."

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Wasps: Premiership club follow Worcester Warriors into administration



Wasps have made 167 players and staff redundant after becoming the Premiership's second club to go into administration inside 21 days.

The Coventry-based club were suspended by the Premiership last week.

It is now been confirmed that they have suffered the same fate as Midlands rivals Worcester and will be relegated.

But Arena Coventry Limited, which operates the Wasps-owned Coventry Building Society Arena, may still avoid going into administration.

While Wasps Holdings Limited are the firm to have actually entered administration, ACL, also part of Wasps, have filed a new notice of intention to appoint administrators with the High Court in London.

That would allow ACL, who hold the Coventry City Council lease to operate the stadium, a fortnight's grace, which will give time to find further funding.

The city council could now step in to keep the CBS Arena operational, so that stadium tenants Coventry City's Championship home matches can still be played, along with other events.

Meetings were set up for 14:00 BST on Monday to inform players and staff at both the CBS Arena and Wasps' training ground at Henley-in-Arden.

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Bondholders asked for more money to stave off stadium business liquidation



Bondholders owed £35m by Wasps have been asked for more money as the threat of liquidation looms over the Coventry Building Society Arena stadium business.

A letter from bondholder trustee, US Bank Trustees Limited, to bondholders said the funding was needed to continue to market the stadium to potential investors or new owners.

Parent company Wasps Holdings has already entered administration - with debts reported as running into nine figures.

That resulted in all the players and coaching staff at the rugby club being released from their contracts as administrators FRP were appointed on October 17.

But the companies which make up the stadium business - Arena Coventry Limited and Arena Coventry (2006) - are not yet in administration and continue to operate, with Championship football club Coventry City continuing to play their home games at the CBS Arena.

The letter to bondholders read: "In the absence of receipt of additional funding in short order, it may not be possible to continue marketing the assets which form part of the security.

"In such event, the statutory purpose of administration may not be capable of being achieved and the directors of Arena Coventry Limited and/or Arena Coventry (2006) Limited may have no choice other than to apply to court for an order placing ACL and/or ACL2006 into compulsory liquidation."

The letter also said any additional funding supplied would not receive priority when it comes to repayment over existing bondholder debts - which were originally due to be repaid in May. Another interest payment of around £1m is also due next month.

The stadium companies have until Monday to secure funding, or a new buyer, for the stadium or they too could enter administration.

But an application could be made to the Insolvency Court for another extension to that deadline if they can show new funding, or a takeover deal, is close to being agreed.

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Wasps suspended from Premiership for rest of the season and relegated



Wasps have been suspended from the Premiership and Premiership Rugby Cup for the rest of the season, the RFU has confirmed.

The Coventry-based club will be relegated from the top tier and their results from this season expunged.

Wasps are in administration but if suitable investment is found will begin next season in the Championship.

After the demise of Worcester Warriors last month, only 11 clubs will contest the rest of the Premiership season.

Six-time champions of England and twice winners of the European Cup, Wasps went into administration on 17 October, having been initially suspended from the Premiership by the RFU a few days before.

A total of 167 players and club staff were made redundant.

This Sunday's game against Newcastle Falcons was listed as cancelled, but now all of their fixtures moving forward will be removed from the schedule.

The decision was confirmed by the RFU's club financial viability group, although Wasps have the right of appeal if they can show it was a no-fault insolvency.

In a statement, the group said it was "encouraged by the progress made by the administrators and it has taken the decision to suspend the team in order to support the prospect of securing a deal with the right investor and giving the club the best chance for a long term sustainable future".

It added: "Any potential investors and management will require due diligence and approvals from the RFU and PRL. A condition of any potential deal will include a requirement for the payment of all rugby creditors."

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Wasps: Offer to buy Premiership club accepted by joint administrators



Wasps' joint administrators say they have accepted an offer to buy the financially stricken Premiership club.

The offer, from a consortium including members of Wasps Legends, is for only the men's rugby team and youth academy.

The six-time champions were suspended and relegated from the league after entering administration on 17 October.

Joint administrator Andrew Sheridan said: "This deal is a significant step forward, one that we all hope will allow Wasps Rugby to live on."

He added: "The consortium knows it still has to meet all of the Rugby Football Union (RFU) requirements, including the fit and proper owners' test and the presentation of a three to five-year business plan with supporting robust financial forecast.

"This needs to be completed as soon as is practical in order to be in a position to play next season."

The bid is subject to contract and the consortium plan to liaise with both the RFU and the Rugby Players' Association to ensure compliance with creditors' rules.

Despite Wasps' relegation, the prospective buyers have indicated they intend to appoint coaching staff and build a squad "capable of competing at the top level next season".

Separate discussions are taking place about the future of Wasps' netball side and the women's rugby team, while BBC Coventry & Warwickshire understand the prospective takeover does not include the Coventry Building Society Arena.

Wasps were the second club to be suspended from the Premiership this season after Midlands rivals Worcester Warriors entered administration in September.