Relegation confirmed - Takeover needs to be completed by Monday

[MarleyWasp]

From Chris Jones on Twitter:

The RFU rule that Wasps Holdings Limited (WHL), the main operating entity of Wasps RFC, and of WRFC Trading Limited, the main operating entity of Worcester Warriors RFC have failed in their bids for ‘No Fault Insolvency’ rulings and will be relegated @WorcsWarriors @WaspsRugby

Both cited the impact of the Covid pandemic as the primary reason for entering administration. RFU’s Club Financial Viability Group, having considered both applications made a recommendation to the RFU Board who ratified both applications are not accepted,

Both clubs have a right of appeal to an independent panel. To allow the necessary time to plan for the season ahead and provide certainty to @WaspsRugby and @WorcsWarriors as well as the other clubs in the Championship, the timeline to agree sales of both clubs is 12 December

And finally, Should sales of the clubs take place within the timeline and rugby creditors paid, @WaspsRugby and @WorcsWarriors will begin the 2023-24 season in the Championship.

[Shugs]

Good day to bury this. Pretty much the expected outcome though. So we have the right to appeal but equally have to complete a sale by 12th? Not sure how that works?

[jamestaylor002]

Unless some credible moves are being made in the background, that we are yet to be made aware of, I would've thought that's going to be a huge ask.

If this deadline is passed with no successful outcome, I assume that means the opportunity of re-entering at Championship level will no longer be available and Wasps, if they did eventually come back, would need to start at the bottom of the pile.

[Skippy]

Feels as though the RFU want and are determined to put both clubs out of existence 

[MarleyWasp]

Feels as though the RFU want and are determined to put both clubs out of existence

You've hit the nail on the head there. From what I've heard both deals are pending the new owners passing the RFU fit and proper person test - and have been for several weeks. If either club miss the deadline it'll be because the RFU haven't enabled us to meet the deadline. Can easily see this ending up in Court.

[Bloke in North Dorset]

The relegation comes as no surprise, its obvious from the approach they've taken hat they now want a smaller PRL with the P Shares spread across fewer clubs as a short term solution to their solvency problems.

Long term, who knows, but its hard to see a smaller league getting anywhere near as much TV and sponsorship money.

Tactical thinking masquerading as strategy and vision is guaranteed way to fail in the medium term.

[Bloke in North Dorset]

Feels as though the RFU want and are determined to put both clubs out of existence

You've hit the nail on the head there. From what I've heard both deals are pending the new owners passing the RFU fit and proper person test - and have been for several weeks. If either club miss the deadline it'll be because the RFU haven't enabled us to meet the deadline. Can easily see this ending up in Court.

If they are at "fit and proper person" stage the deal on the table must be acceptable. Or at least in any other business it would because you wouldn't waste the time or money but as this is the PRL and RFU I wouldn't be surprised if they put the horse before the cart and insisted on that process before looking at the deal.

[NellyWellyWaspy]

Not having to pay the rugby creditors would save a huge amount of money.

If you were able to enter at Level 7 (by meeting the criteria, which itself might take a couple years), it would take a minimum of 7 years to get back to the Premiership.

So, yes, the club would be dead, unless there was a club already in the Championship that needed rescuing needing not a lot of money and would agree to a merger/takeover. Moseley Wasps anyone?

[Heathen]

At least we will know whether we are dead and buried or toasting the Legends come 23.59 next Monday.

[baldpaul101]

but still no confirmation on the P share?
Relegation is one thing, assuming a take over can be agreed etc, but Relegation with out the P share is another thing entirely.

[Shugs]

The deal on the table has been accepted as long ago as October. The administrator confirmed that. It’s just a case of the fit and proper test and I guess being able to demonstrate a place to play.

[NellyWellyWaspy]

but still no confirmation on the P share?
Relegation is one thing, assuming a take over can be agreed etc, but Relegation with out the P share is another thing entirely.

Oh, rest assured, the P share is gone. The RFU, representing not the sport but the rich owners who are (or will be) left, want this to be as painful as possible, so that no other club lets it get this bad.

[Neils]

but still no confirmation on the P share?
Relegation is one thing, assuming a take over can be agreed etc, but Relegation with out the P share is another thing entirely.

Oh, rest assured, the P share is gone. The RFU, representing not the sport but the rich owners who are (or will be) left, want this to be as painful as possible, so that no other club lets it get this bad.

The EAs have said so.

[Skippy]

That’s the same disgraceful EAs that are worried about clubs clearing their debt by going into administration and getting a competitive leg-up off the back of it. Meanwhile, having a sugar daddy that either stops you getting into debt in the first place or clears it by buying assets for undisclosed sums does not create this issue. It’s also not a worry if the sugar daddy helps you breach the salary cap.

Quite frankly, the RFU, the PRL and the disgraceful EAs can all go and **** themselves.

The one thing Eddie did get right in the last few weeks was naming Sweeney, “Slippery Bill”.

[backdoc]

The EA's had their £50m debt written off IIRC by Wray when he sold