Wasps face automatic relegation as club enters administration

Wasps are facing the prospect of relegation after moving towards administration.

The club has filed a notice to appoint an administrator over the £35m debt owed.

Regulations set out by the Rugby Football Union dictate that clubs who enter administration during the regular season face the prospect of automatic relegation from the Premiership.

A Wasps statement said: “Due to the impending threat of action from HMRC, Wasps Holdings Limited … have taken the difficult decision to file a notice of intention to appoint administrators in order to protect its interests.

“This measure does not mean the business is in administration but provides a crucial period of grace to continue negotiations with a number of interested parties to secure the long-term future of the group. These negotiations have been going on for some time, are in advanced stages and we are hopeful of securing a deal.”

RFU regulations state that a club that enters administration during the season will be relegated for the following campaign as it is classed as an insolvency event. RFU regulations also state that “notice of intention to appoint an administrator” is considered an insolvency event, which paints a bleak picture for Wasps.

In a statement, the governing body said: “The RFU is in dialogue with Wasps, we will work with them to understand the current action, their sustainability plans and what the next steps will be.”