Wasps have been placed under surveillance three weeks after Midlands rival Worcester Warriors suffered the same fate.
The Premiership rugby crisis worsened on Monday afternoon as Wasps, who had been suspended from the league last week following a warning of an impending administration, collapsed like an institution, save in name.
More than 100 people will be fired as a result of the unpaid tax bill, leaving the club with a totally uncertain future.
Since Wasps had shared grounds with Championship outfit Coventry City since their move from London to the area in 2014, there was a lot of uncertainty about the future of the CBS Arena.
However, with Arena Coventry Limited set up to avoid administration, it is buying the Coventry City Council time to keep the ground operational for home games and other events.
Rugby’s crisis deepened last week when Wasps issued a statement saying they were about to follow Worcester in the administration.
Wasps entered the administration on Monday afternoon after announcing it was imminent last week
The league is now on precarious ground with the collapse of two of its biggest clubs in a matter of weeks.
A statement from the administrators accompanying Monday’s announcement revealed that all players had been laid off, except a few employees continued to oversee the company’s winding down.
“Unfortunately, upon their appointment, the Joint Administrators had to lay off 167 employees, including all members of the playing and coaching staff,” they wrote.
“A small number of employees have been retained to assist in the orderly running of the business and the operation of the CBS Arena, which is unaffected by this administration and will continue as usual.”
The club stopped trading after being banned from the Premiership following the announcement
The RFU now has a major task on their hands to prevent the crisis from worsening further and dragging other clubs to the same fate. Bill Sweeney, the current chief of the body, has backed plans to reduce the Premiership size to 10 teams from 2024 to avoid a financial crisis that engulfs more parties.
“I see it as viable for a number of reasons, and we’ve been saying for some time that less is more,” he said when asked about the possible solution.
“I don’t know if 10 is the absolute number, but that’s the number that’s being used now, but in that and the central distribution around broadcast and commercial revenue, there’s clearly a financial benefit to fewer teams in that league.
“Obviously one of the main issues we’re dealing with is the calendar.
“And one of the things holding us back in England is the overlap between the international game and the club game.
“So reducing the size of PRL (Premiership Rugby Limited) will help us do that
More to come.
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