Wasps have filed a second notice of intention to appoint administrators which will help them to secure more time in their bid to lift them out of their financial crisis.
A Wasps Holdings Limited statement revealed that negotiations are at “a relatively advanced stage” after the club was issued with a winding up order from HM Revenue and Customs for £2million in unpaid tax.
Tough times
The Premiership outfit is also battling to repay their £35million bond that was raised in a bid to help finance their move from High Wycombe to Coventry in 2014 that was due in May.
Worcester Warriors were recently placed into administration and face liquidation on Wednesday because of an action brought by HMRC. Wasps are desperate to avoid a similar fate.
“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,” a spokesperson for Wasps Holdings Limited said.
“Since filing the original notice of intention on September 21, a number of additional potential investors and funders have come forward.
“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.”
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Automatic relegation a possibility
If they fail to secure finance needed to prevent administration, it could result in automatic relegation from the Premiership.
However, the Rugby Football Union has the discretion to reduce or waive any punishment if the insolvency was deemed to be beyond the control of the club, including in the event of a pandemic.