Wasps 'need investment to avoid administration'

 

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Wasps are in grave danger of going into administration unless they can attract new investment by the end of the Premiership season, following the collapse of takeover talks. The club have been looking for a new owner since July of last year, when Wycombe District Council withdrew its support for the construction of a new stadium.

Wasps were close to completing a takeover last week but that arrangement has fallen through, leaving the club in a precarious financial position. It is understood that Wasps have enough funding to see them through the next month, in which they will seek to avoid relegation, but need urgent investment to remain in business beyond May.

A club statement said: "The board is disappointed to confirm that negotiations, which had been leading towards an imminent takeover, have stalled. The board, having taken independent advice, is able to confirm that London Wasps Holdings Limited remains nevertheless a going concern.

"However, the board acknowledges the urgency of the current situation surrounding the club. There are ongoing active discussions with other potential investors but the club is seeking, using all best endeavours, further expressions of interest."

It is understood the collapse of the takeover bid was due to funding issues with the potential investor. It emerged last week that Wasps' current owner, Steve Hayes, had been arrested and bailed as part of Scotland Yard's computer-hacking investigation.

The club chairman, Mark Rigby, said: "London Wasps has a long and successful history and is one of the best known brands in the game and the board is convinced that the right backer exists. With a great squad in place and the excellent [director of rugby] Dai Young at the helm, we believe we are set to make a strong impact next season. Time is however short and we urgently need a new investor or consortium to back this belief."

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