'Broader challenges': Premiership Rugby and RFU issue joint statement on Wasps
REACTION: Premiership Rugby and the Rugby Football Union have issued a joint statement on Thursday after Wasps became the latest club to be suspended.
On Wednesday, Wasps revealed they are likely to enter into administration because of their debts.
They are the second Premiership club to be hit with a suspension due to financial difficulties following Worcester last month.
Unlike Worcester, Wasps have not yet been relegated from the top-flight as a result of their cash crisis.
But, under Rugby Football Union rules, Wasps would be condemned to relegation if they go into administration, unless they can prove a “no fault” solvency event because of the global pandemic.
“Following yesterday’s announcement that Wasps are likely to enter administration in the coming days, Premiership Rugby and the RFU will continue to work with the club and, once appointed, the administrator to support ongoing efforts to secure a long-term future for the club,” said the Premiership/RFU statement.
“The financial difficulties at Wasps, coming on top of the administration of Worcester Warriors, have further highlighted the need for rugby’s stakeholders to address the broader challenges facing the professional club game.
“Premiership Rugby and the RFU are working together to examine a range of options to provide stronger foundations for the game. This process, involving close consultation with clubs and other stakeholders, includes consideration of issues including the structure of the league and visibility of financial information. Player welfare will remain a priority at all times.”
Simon Massie-Taylor, Chief Executive of Premiership Rugby, said: “Yesterday marked a very sad day for English rugby with Wasps, another of our much-loved teams, likely to go into administration. We know this is a desperate time for staff, players, and fans, but all concerned are working tirelessly to find a solution that allows the club to move forward. This is more than a business in difficulty, it’s a community in distress and one that is an integral part of the wider rugby family.
“As well as supporting efforts to find a long-term sustainable future for both Wasps and Worcester Warriors, it is our responsibility to set a more sustainable path for English club rugby. This was on the agenda already, but we need to now accelerate the work we are doing with our clubs, the RFU, and other stakeholders across the game. Our shared goal must be to put in place stronger foundations that underpin the long-term prosperity for the sport in this country.”
RFU CEO Bill Sweeney said: “The news that Wasps is about to go into administration is very sad for English rugby. Like all rugby clubs Wasps has a great history and heritage and one that fans around the world connect with. The men’s and women’s teams have been the home for many great past and present England players.
“Two professional clubs facing financial difficulties is a clear barometer of the challenges being felt by the economy, sport and rugby union specifically. The economic environment has compounded these challenges and there is a clear need for more financial transparency from all clubs together with collective long-term investment and planning for the benefit of the professional game overall.
“Throughout the pandemic, rugby clubs have been beacons of their community, providing much-needed support for the communities they serve. Through adversity comes strength and I am confident that despite the difficulties of professional clubs, rugby will continue to deliver its core community values and welcome new and old members to the game.”
Additional source: AFP
