Wasps are ninth in the Premiership table, having won just one of their four games this season
Financially troubled Wasps have announced they are “likely” to go into administration “within days”.
The Premiership club have twice lodged a notice seeking insolvency experts to help them with their debts, which run into tens of millions of pounds.
They face becoming the second side to go into administration in just a few weeks, following Worcester last month.
In a statement, Wasps Holdings Limited said they had been working “tirelessly” to secure the club’s future.
“We strongly believe this is the correct course of action,” the statement added.
Coventry Wasps will not play this Saturday’s Premiership game at Exeter following the news, saying they “recognise that this will affect not only our players, staff and supporters, but also Exeter Chiefs and the wider rugby community “.
Worcester were suspended and relegated to the Championship for next season last week, a day after players and staff had their contracts terminated when the club was liquidated.
The Warriors’ results were suppressed and the Premiership, the top division of English Rugby Union, was reduced to 12 clubs for the rest of the season, although the club is appealing the punishments.
However, if Wasps were to go into administration, they would also face relegation.
Under Rugby Football Union rules, any club that enters administration is automatically relegated next season unless it can prove it was a no-fault insolvency.
As Championship clubs have recently struggled to meet the minimum standards criteria to allow promotion to the Premiership, the relegation of both clubs could mean a downgrade in the league, which it is understood could have a knock-on effect regarding media rights.
ITV agreed a new deal with Premiership Rugby to broadcast a number of matches, including the Twickenham final, on live television earlier this year.
After Worcester went into administration, Premiership Rugby chief executive Simon Massie-Taylor told BBC Sport that “financial viability and visibility is a big issue” going forward and said he had asked all clubs to provide a “very clear picture” of their financial position.
Wasps do not have “insufficient cash” to continue operating
The Wasps had hoped to secure new funding to help with a £35m debt owed to bondholders following their move from London in 2014, with HM Revenues and Customs chasing them for unpaid tax.
Despite saying talks with interested parties are “ongoing”, the club have been forced to take action.
“Since we lodged a notice of intention to appoint administrators on 21 September, we have been working tirelessly to secure the long-term future of Wasps Holdings Limited and all the organizations and clubs that make up the Group,” the statement continued .
“Negotiations to secure agreements to allow the men’s and women’s rugby teams, the netball team and the arena and associated businesses 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 group companies and it is therefore likely that they will enter administration in the coming days with a view to concluding deals soon after. .”
Wasps’ decision came after it revealed it does not have “sufficient cash” to continue operating without further investment. Interested parties were asked to provide “bridging funding” to wait for the club long enough to find “a solvent solution”.
“Unfortunately, this has not been possible to date, although we will continue to pursue this until the last opportunity,” the statement said.
The club’s official beer supplier Heineken said it had “increased stock that had not been paid for” after failing to find a “viable solution” following Wasps’ notice of intention to appoint administrators.
Any move into administration would throw the Wasps’ future at their home ground, the Coventry Building Society Arena, into doubt.
The freehold of the CBS Arena is held by Coventry City Council, which granted Wasps a 250-year lease when the club bought the stadium’s operating company as part of its move to West Midlands eight years ago.
The council has warned the club that any bankruptcy proceedings could see Wasps lose ownership of the ground.
The future ownership of the stadium is also under the spotlight following 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 Wasps Group’s statement today and remain in contact with Wasps Group regarding the current situation.”
analysis
Laura Scott, BBC sports news correspondent
This is another devastating day for Premiership rugby. Just a couple of weeks after the demise of fellow Midlands club Worcester Warriors, Wasps look set to follow suit by going into administration.
While there are parallels, including the two clubs facing the threat of HMRC action over unpaid taxes, Wasps’ financial crisis is unique as they owe £35m to bondholders following the club’s move from London eight years ago.
In its statement, Wasps Holdings Limited said negotiations to secure the future of the men’s and women’s rugby teams, the netball team and the arena were “ongoing” but there was likely to be “insufficient time” to find a solution. It is hoped that deals can be concluded soon after the group goes into administration.
Exeter’s Maunder “feels really sorry” for the Wasps players
Jack Maunder was at scrum-half as Exeter beat Wasps in the 2020 Premiership final at Twickenham
Exeter scrum-half Jack Maunder was halfway through his pre-match media call ahead of Wasps’ trip to Sandy Park when the news broke.
Maunder was part of the Exeter side that beat Wasps 19-13 in the 2020 Premiership final as the Chiefs won a domestic and European double.
“We know a lot of the lads from Worcester and Wasps, they’re lads who have been around for a long time,” Maunder, whose side play Bristol in a friendly on Saturday, told BBC Sport.
“It’s a very strange feeling and I feel sorry for these guys and for this staff.
“They have a great set-up at the Wasps, they have great coaches and it looks very sad.
“It’s very difficult for these guys and we’re not sure what’s going to happen with the Wasps. It was very sad what happened to Worcester and I just wish all these guys the best of luck going forward.”