This is very sad news, what was Dallaglio talking about last week that Wasps were imminently about to announce good news on their finances!
Maybe this IS the good news. Maybe somebody is lined up to buy it at a knock down price from the administrators.
Possibly, but what would happen to the ground? Would that still go to the bond holders anyway?
The ground is complicated, as it is leased, and I suspect that the lease has an insolvency clause (they often do), where the property reverts back to its owners. The lien the bondholders and the government have may only be over the lease, as the freehold belongs to Coventry Council. There might be some clawback to those debtors if the council then sell a new lease.
Nothing will happen too quickly, as that is the point to appointing an administrator. Once appointed, creditors can no longer take action, and all debts go on hold and unpaid, but the administrator can choose to trade on. Typically, a buyer is already lined up, who provides the administrator with a 'going concern' guarantee (to meet costs like power, wages, utilities, and other services/supplies as are absolutely needed). We are not playing at home now until October 9th, so that gives an administrator enough time to sort it out whilst paying the relatively minimal costs of playing away.
Now you see why I was musing before about Wasps and Worcester merging. If the same buyer bought both clubs, and with Premiership permission, could merge them, with Wasps/Worcester playing at Sixways, training at Henley, and leave the CBS Arena for CCFC to play at.
These times will be very worrying for staff, players and fans. And they will learn nothing for a while.
Always a Wasp
