The Rugby Football Union has confirmed that financially stricken club Wasps have been suspended from the Gallagher Premiership.
In a released statement, the governing body said: "The RFU's Club Financial Viability Group has met this evening (Tuesday) and confirmed that Wasps are suspended from the Gallagher Premiership.
"We appreciate this is a very difficult time for Wasps players, staff and supporters who will be concerned at news that the club is likely to enter administration. The RFU will continue to work with the club, PRL (Premiership Rugby) and any potential administrator or future investors to find the best possible outcome for the club."
The club had already announced that they were pulling out of their top-flight fixture this weekend against Exeter Chiefs after failing to find the money required 'to continue to fund operations'. The two-time European champions are still actively seeking a buyer, with former Newcastle United owner Mike Ashley having held talks with the club over a potential purchase.
The crippling debts relate to the £35million worth of bonds taken out by the club’s owner, Wasps Holdings, to fund their move from London to Coventry in 2014. That debt was due to be repaid in May, while the club also owes £2m in unpaid taxes to HMRC, as well as an outstanding loan to Sport England.
In what appears a period of crisis for English club rugby, Worcester Warriors went into administration last month over their own £6 million unpaid tax bill to HMRC. The club was duly suspended from all competition, with players and staff having their contracts ripped up.
Earlier on Tuesday, a spokesperson for Wasps Holdings Limited had admitted administration seemed inevitable: “Since filing a notice of intention to appoint administrators on September 21, 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," they said.
“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 have won four Premiership titles since the turn of the century, and were runners up to Exeter Chiefs in 2019/20. In 2014, the club relocated from London to the Richoh Arena, now the Coventry Building Society Arena.
