Wed, 11 Apr 2012 | ADMINISTRATION
One of the most illustrious clubs in English rugby could fall into administration, it has been revealed.
London Wasps was due to be sold to Tony Kleanthous, chairman of Barnes Football Club, earlier this week. However, the plans fell through due to funding issues.
Now, if the club cannot find further investment before next month the administrators will be called in to tie things up. The news has been something of a surprise as the firm is thought to have sufficient funds to last the season, despite the fact that it is losing £2 million a year.
If the club remains in administration beyond six weeks, they will be facing more than financial issues as the Rugby Football Union (RFU) regulations state that any club remaining in administration beyond six weeks will be docked 22 points, meaning the Wasps would be relegated to the Championship.
The RFU is unlikely to offer the club a financial rescue package, leaving it up to a buyer to save the stricken Wasps. Any new investor, however, is likely to only need to offer a nominal amount due to the fact that around £8 million will be required to keep the club afloat.
A statement from the Wasps to the Daily Telegraph insisted that the firm remains a “going concern” at the moment, suggesting that administration is not yet inevitable.
The imminent sale of a well-established and well respected business, with over 20 years of experience.
Represents an opportunity for an acquirer seeking a very well-established engineering business with some 40 years experience, operating in a niche sector of the market.
Represents an opportunity for an acquirer seeking the retirement sale of long established specialist waste management business.
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