LONDON (AP) — Wasps, one of England’s most storied rugby teams and a two-time European champion, must begin rebuilding from the bottom of the country’s league pyramid after having a license to play in the second-tier Championship revoked on Thursday.
The club was expelled from the top-flight Premiership after falling into administration — a form of bankruptcy protection — in October amid debts totaling 95 million pounds ($118 million). It had been hit by a winding-up order from the revenue department for 2 million pounds in unpaid tax after financial issues stemming from its relocation from London to Coventry in 2014.
Wasps’ new owners, HALO22 Limited, failed to meet a deadline by the Rugby Football Union for proving the club could operate at the second-tier level. Among the commitments that have not been kept are the provision of evidence that creditors have been paid and the creation of a suitable governance structure.
The RFU has also been told by Wasps that the club is unable to recruit staff or players until additional finance has been secured and cannot recommit to playing in the Championship.
The governing body has been forced to remove Wasps from the league structure, meaning they are likely to have to start in the 10th tier of the English game.
“This is not the outcome anyone in rugby wanted and all those involved with the club will be deeply disappointed,” RFU chief executive Bill Sweeney said. “We have worked with the new owners for the past six months to try to ensure that a robust plan could be put in place for the club to continue to play in the Championship while players and staff could receive monies owed to them.”
Wasps’ demotion is another depressing episode in the English club game’s battle with its shaky financial foundations. Worcester Warriors were also expelled from the Premiership around the same time as Wasps after being placed in compulsory liquidation while being pursued for unpaid tax.
This week, London Irish became the latest Premiership club under threat as uncertainty swirls about its future amid a proposed takeover by an American consortium. The RFU has imposed a deadline of May 30 for either a takeover of the Exiles to be completed and approved or for the club to show it will continue to be funded to operate throughout next season. Otherwise, the club will lose its place in the top league.
Meanwhile, Leicester and Exeter — two of England’s top teams — have needed additional financing this season to stay afloat.
Sweeney said the RFU was working “at pace to ensure the game emerges from this challenging time on a strong and sound financial footing.”
Wasps won the European Cup in 2004 and ’07, and is a six-time English champion. It had been an ever-present in the Premiership and had some of England’s top players like Lawrence Dallaglio and Simon Shaw.
Before falling into administration, its squad contained a number of England internationals, including Jack Willis, Joe Launchbury and Jacob Umaga.
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