Wasps' re-emergence raises more questions than it answers
Despite the club’s 2022 collapse with reported debts of over £100 million, the spectre of Wasps has never quite gone away.
And the arrival via the club’s social media accounts of a headline claiming readers are just one click away from “the latest on our recovery” has quickly reopened plenty of old wounds.
This first post by the club – which is now under new ownership and management – since late 2022 offers little by way of hard news. In truth it seems more of a fishing expedition to ascertain what kind of interest the brand retains.
While no financial input is sought, by asking interested parties to “pledge” their commitment Wasps gain a marketing database plus a headcount estimate that they can brandish in front of English rugby’s governing body as they make a case for inclusion in the RFU’s mooted Premiership Two.
Given the club’s recent history, by claiming they have “core sustainable finance and a stadium in which to play” without providing concrete evidence of either, reaction has inevitably been mixed.
Based on social media, for every die hard black-and-gold fan who retain affection for the former European champions and interest in their future there are plenty of sceptics plus more than a few whose anger over the jettisoned £100 million-plus of debt is palpable.
Those reading this outside England may not appreciate the level of antipathy towards the RFU which currently exists among players, administrators and supporters of the largely semi-pro and amateur clubs operating below the Premiership.
And the next part of Wasps’ release: “All we are waiting for is a competition to join that will allow us to compete at the highest level” – pours plenty of fuel on these flames.
It requires very little by way of intuition to work out they either already have or are very close to securing a guaranteed spot in the Premiership Two competition which the RFU sees as the future. That situation instantly closes the door on the ambitions of one hopeful (and solvent) club while simultaneously sending the message that however badly a rugby business fails if you are one of the chosen few there is always a shortcut back to the top.
Put another way, while the likes of Richmond, Orrell, West Hartlepool, Rugby Lions and London Welsh – all former inmates of English rugby’s top flight – have been required to start again at the bottom of the ladder following financial implosion, it seems increasingly likely that an exception is being made here.
Given that the Championship clubs are in many cases already being dragged kicking and screaming towards Premiership Two, this piles on the agony. Three years on, their central funding remains at around 25 per cent of its pre-COVID level and the initial Premiership Two financial offer from the RFU is reportedly below even that level.
Add in the loss of face required to apply for a place in a league in which you already play and the question of whether merit-based promotion and relegation will ever return and it is easy to see why they are upset.
Wasps go on to tell their social media followers that their future league administrators must “share our values.”
Whoever thought attempting to claim the moral high ground around values was a good idea has clearly not taken very long to understand the club’s recent history and how this may chime with those affected.
In December 2022 BBC Coventry & Warwickshire’s Simon Gilbert’s investigation confirmed: “Big losers were Wasps bondholders, who faced total losses of £27.8m.” These were often small investors and longtime fans from the club’s West London and Wycombe days.
He also reported that 40 local Coventry businesses were owed significant sums while catering suppliers Delaware West and Compass collectively wrote off around £12 million.
In various guises, the UK government was owed £21 million while former owner Derek Richardson has lost £17 million of his own money.
RFU regulations insist that a phoenix club being reborn from the ashes of a collapsed entity repays its “rugby-related debt” which includes outstanding wages. However, there are no rules governing much of what is owed, so it is entirely likely that the Wasps ‘newco’ has simply left behind a sum over £90 million.
Without wanting to bore sports lovers with English corporate law, ‘pre-pack administration’ of this type allows administrators handling the assets of a collapsed firm to sell it as a going concern in order to raise funds for the outstanding creditors and avoid redundancies. This pre-pack has saved almost no jobs and cleared very little of the debt.
If the league to which Wasps refer is Premiership Two are these really the values to which the rest of the clubs aspire?
For those saying Wasps are now a new organisation that happens to have the same name and should therefore be free from the sins of its father, consider that it is owned by Chris Holland. For the last couple of years of Wasps’ existence in Coventry, Mr Holland was its chief operating officer which puts him right at the heart of everything that went on.
A photograph of Lawrence Dallaglio also adorns this latest release. He was of course captain of Wasps when the club lifted English Premiership and Heineken Cup titles in the 1990’s. He was also a non-executive director of the failed company and the man who live on BT Sport said they should be treated as a special case.
So where does all this leave us? With more questions than answers.
If Wasps intend to build a ground in Kent how are they funding it and is there any public money involved? In the meantime how will the rugby clubs based in or around Worcester, Barnet, Oxford, Solihull, Henley-in-Arden or any of the myriad of other possible venues which have been put forward respond to the interim arrival of a competitor club with all this baggage?
Why would the RFU ignore their previous consistency around failed clubs and wave Wasps straight into a newly-constructed Premiership Two? Will they also do it for Worcester or London Irish or Jersey Reds? And why would they bend over backwards to accommodate a car crash of a business that has left a trail of debt instead of properly funding Championship (or even National One) clubs that have operated within their means.
Above all – whatever the letter of the law says – how can any governing body turn a blind eye to the scale of debts which are simply being airbrushed out of history?
I thought my last Wasps story was written some time ago, but like those who invested in their bond it seems I am guilty of poor judgement.
About the author: RugbyPass columnist Paul Smith covered Wasps for the Coventry Telegraph then worked for the club as its press officer.
Comments on RugbyPass
Danny Care. Lang in die tand.
1 Go to commentsBig empty stadium does nothing for atmosphere but munster are playing well with solid performance
1 Go to commentsYes, Fiji can win the World Cup! With that belief plus their christian faith🙏 and hard work it is achievable. Great article. Ian Duncan Fiji resident 1981-84
2 Go to commentsInteresting comments about Touch. England’s hosting the Touch World Cup this year and the numbers have exploded since their last World Cup in 2019, something like 70% more teams and 40 nations taking part. And England Touch have made a big thing about how many universities are in their BUCS University Touch Championship as well as Sport England membership. Can only see this growing even more domestically as more people become aware of it
10 Go to comments“Cortez Ratima is light years ahead of anyone on current form, while TJ Perenara has also skyrocketed into contention following the unfortunate injury to the talented Cam Roigard.” At last some sanity. Hitherto so many pundits have been wittering on about Finlay Christie to the point one wondered if they were observing a FC in a parallel universe where the FC they saw wasnt just the mediocre Shayne Philpott project of Fosters hapless AB reign in the real world. Ratima, Perenara and Fakatava are the ONLY logical 9s for Razor now Roigard is crocked.
2 Go to commentsThis game was just as painful as the Hurricanes game. It was real fork-in-the-eye stuff.
2 Go to commentsNow if they could just fire the Crusaders ground PA guy who likes to play his dance music and just loves the sound of his own voice the entire game, even when play is going on. And I thought their brass band thing of a few years ago was bad.
5 Go to commentsUnfortunately when you lose by far the two form players this season in Roigard and Aumua, you're left replacing two game changing Tanks with a couple of pea-shooters. Which is also about the speed of TJs pass.
2 Go to commentsBit rich coming from the guy with zero loyalty to anyone or any team, including happily taking a players place in a league world cup squad because well, SBW wanted to play in it and thus an already named player got told he was no longer going. And airing stuff like this, which may or may not be true, doesn't exactly say you're a stand up guy either SBW. Just looking to keep his name in lights as usual.
38 Go to commentsTamati Tua. …the Taniwha NPC midfielder. Ollie Sapsford, Hawkes Bay NPC midfielder…doing well
2 Go to commentsFiji deserve to be in the rugby championship, fans love seeing the Fijian national team play, the Fijian Drua is a wonderful idea but the players can still be stolen to play for NZ and AUS…
2 Go to commentsThe first concern for this afternoon are wheather forecast…
1 Go to commentsWhy cant I watch Rugby games please?
1 Go to commentsBeautiful shot from Finau, end of story. Gutted for Shaun Stevenson though.
4 Go to commentsThe Chiefs definitely didn’t win ugly. They had the superior scrum, a dominant lineout, and their defence was excellent once the Waratahs scored their two tries (thanks to some lucky refereeing calls mind you). They put pressure on the Waratahs lineout throughout the game, and the mind boggles as to why the referee did not award a yellow card or a penalty try against the Waratahs for repeated scrum infringements on their own try line before Narawa’s first try. And the Chiefs were slick with their passing and running angles on attack. It was a dominant performance all round, even with many questionable refereeing decisions.
1 Go to commentsWasnt late. Ref 2 assistants andTMO all saw it so who are you to say it was?
4 Go to commentsAre the Brumbies playing the Blues twice in a row?
4 Go to commentsBig difference from the Saders. Forwards really muscled up and laid a solid platform. Scooter brought some steel and I liked the loosie combination. Newell has been rather disappointing this season but stepped up big time - happy also to see Franks dot down. He should do that more often! Reihana had a good game and there seems to be more flair and invention with him in the saddle. McNicoll plays well from the back and is reliable plus inventive when he joins the line. Keep it up chaps!
5 Go to comments🤦♂️🤣 who cares who’s the best . All I know is the All Blacks have the star coach but have few star players now …
34 Go to commentsJe suis sûr que Farrell est impatient de jouer avec Lopez et Machenaud et d’être entraîné par Collazo… 🤭
1 Go to comments