Former Wasps chief executive accuses RFU of ignoring club's pleas for help
Exclusive: Stephen Vaughan has branded the governing body 'culpable' for the plight of one of the country's biggest teams
By Ben Rumsby 12 December 2022 • 4:29pm
Stephen Vaughan has accused Bill Sweeney of ignoring Wasps’ pleas for help from the Rugby Football Union prior to their financial collapse.
Vaughan, the chief executive of the stricken Premiership club until they were plunged into administration, branded the RFU “culpable” for the plight of one of the country’s biggest teams.
He also spoke of his devastation when Wasps owner Derek Richardson vetoed a £60 million rescue bid that might have spared scores of people from losing their jobs.
And he declared the game “broken” over its failure to put measures in place to prevent a crisis that also engulfed Worcester Warriors and left both clubs fighting for their very existence.
Sweeney, the RFU chief executive, was accused last week of being “asleep on the job” by MPs investigating Wasps’ and Worcester’s demise.
Vaughan said: “Did I feel that the executive at the RFU got involved at any point to any level and offered any help? No, they didn’t. At all.
“Now, this is Wasps. With respect, this is not Bromsgrove Rugby Club. This is Wasps. This is a 155-year-old club. Former European champions. One of the biggest names in world rugby as a brand.
“And I was very, very disappointed with the lack of engagement from certain people, who never really got involved at all, to try to help and assist in any way, shape or form.
“As a group, we went to everybody, from Bill downwards. And we didn’t feel that we got any support at that level, which was very disappointing.
“I do believe that the RFU are culpable with regards to ensuring that fit-and-proper persons tests are adhered to. Look at what’s unravelled at other clubs.”
Richardson confirmed last month he had rejected a rescue bid for Wasps from global wealth management firm Hottinger, insisting it had not been a realistic proposition despite every other board member voting in favour of it.
At the time Richardson said: “At that stage, we were getting inquiries from a lot of people wanting to do deals. It was obvious what was real and what wasn’t real. There were several other deals that were farther down the track and had gone to advanced discussion stages.
“All that we got from Hottinger was a three-page teaser. For a complex business like ours, it’s ridiculous to say there’s a rescue package from a three-page teaser. It would have taken half an hour to put the three-page teaser together. And it could well have distracted more realistic rescue propositions that were being discussed at the time.
“If the board had had a realistic proposition for saving the club and the business, I would have supported that.”
Vaughan said he had been left “very shocked and disappointed” by the outcome, adding: “It was a very difficult time for me personally because, obviously, I’m dealing daily with people.
“And I’m trying to give them as much hope that I physically can. And when I saw that potential deal on the table, I was kind of high-fiving people, thinking, ‘Thank the Lord this is going to happen’.”
'The game's broken from a commercial perspective'
Branding the near-£100m “legacy debt” he inherited upon joining Wasps as “outrageous”, Vaughan added: “I look back and think about the deals that I did to keep that business afloat. And I know that if I hadn’t have intervened at many periods, this would’ve happened a long time ago.
“So, I’m at peace with that, completely at peace with that. I just wished that other people had made different decisions to keep that organisation going.”
Wasps and Worcester’s collapse has seen both clubs relegated from the Premiership, which will also see their top-flight rivals seize their lucrative P shares and the centralised revenue it brings.
Vaughan said: “The game’s broken from a commercial perspective. So, I think a different model’s needed. I support two strong leagues, rather than one. But I think the P-share model is broken.
“And I think wealth has to be distributed differently because I think, otherwise, we’re going to end up with, in the not-too-distant future, half a dozen clubs that can survive in a league.
Responding to Vaughan’s accusations, the RFU said: “The RFU supported Wasps throughout their insolvency process, speaking on a regular basis with members of their board, management and advisors. We continue to engage with those developing plans for the future of the club.
“While the RFU was unable to finance Wasps’ high levels of debt, we have worked to keep the academy in place to maintain the pathway for young players, and worked with Wasps FC to ensure that the Wasps Women team could continue in the Allianz Premier 15s.”
Topic: Stephen Vaughan Speaks (Read 1695 times)
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