Premiership Rugby is in the midst of a major financial crisis, with six-time champions Wasps becoming the latest club to be suspended from the league after announcing they had been forced to pull out of their upcoming game against Exeter Chiefs and were "likely" to enter administration in the coming days.
The announcement comes after Worcester Warriors, who entered administration last month, were suspended for the remainder of the season and informed they would be relegated. Worcester's administration was sparked by a £6m unpaid tax bill owed to HMRC, with owners Jason Whittingham and Colin Goldring slammed for 'letting down' the players and fans by centre Ollie Lawrence.
Wasps are also expected to be relegated once they officially enter administration, with the club facing a winding-up order from HMRC over £2m in unpaid taxes. However, their financial issues are more long-standing, with a £35m bond taken out to fund their controversial 2014 move from High Wycombe to Coventry the start of their problems.
And according to the Daily Mail, things are only set to get worse for the sport, with around half of the sides that began the Premiership season up for sale 'as the league battles huge financial problems'.
On September 21, Wasps informed the High Court that they planned to appoint an administrator as they were struggling to pay their tax bill and repay the £35m stadium bond.
They filed a second notification on October 4 and are now left hoping for a late cash injection to save them from officially entering administration.
Former Newcastle United owner Mike Ashley has reportedly held talks with the club over a potential purchase, while former Wasps chief executive David Armstron is also said to be working on a bid.
However, the Mail add that the Wasps squad is 'resigned' to administration and the wave of job losses that happened at Worcester. Worcester are set to appeal their suspension from the Premiership on the grounds of "no fault insolvency" and it remains unclear whether Wasps could do the same.
There is real concern other clubs could follow suit, with the impact of the pandemic keenly felt by many clubs and rising energy costs a further issue to contend with.
