It?s over?

[Heathen]

I've been sent this from Scrivs to be shared and is also online here (https://www.wasps.co.uk/club-announcement):

WASPS STATEMENT

Our exit from the Rugby Football Union

It has been an all-consuming 7 months since the 17th of October 2022. Our first task was to save and secure the brand, the IP, and the legend ? and in that we have been successful. Since then, we have been constantly involved in the resurrection of the club with the intention of competing in the 2023 RFU Championship.

Operating in a void between regulatory authorities that were managed by strict governance requirements, and a championship that had not been engaged in our membership and who, perhaps understandably, offered some resentment to our inclusion, has been challenging.

Our recovery to date has been managed by a very small team who have been dealing with the operational and financial issues and requirements of the RFU and PRL since our engagement in November 2022 when we were successful in the approval process to enter the RFU Championship in September 2023. That approval was subject to initial and then continuing requirements around financing, ground, rugby creditors and the demanding governance provisions. During our approval process, and since, we have continually reminded the RFU that we would not repeat the mistakes of the past by allowing a single point of failure, and that we would not commit to any employment or contract unless we were sure that
we would be able to fund the expenditure for the season.

We have embarked on a wide ranging, and professional search, for suitable funding. From the outset we had interest from various sources who engaged in their own due
diligence, some in depth to the extent that they had direct contact with the governing bodies. Whilst the investment interest continues, we regret to say that the current state of rugby finances, the lack of clarity on the league structure and concerns over promotion has caused the investor group to remain silent and fatigued.

On two occasions we asked the RFU for an extension of time to secure funding and to satisfy the rugby creditors. Our requests were refused on both occasions. Whilst we understand the need for regulatory conformity and the administration of the league, the only reason we needed that extension was for the RFU to establish a clear vision and direction of travel so that our investor pool were able to see equitable funding for the Championship and a clear pathway to promotion.

Indeed, the recent revelations around the possible ring fencing of the premiership for 3 to 5 years to protect it has further weakened our investment position. There is the suggestion that a route for promotion could exist with a play-off between the bottom of the premiership playing the winner of the Championship. Given there is a deficit of ?4m+ in funding between the Premiership and the Championship, then the only route of promotion includes the very problem of excessive funding that perpetuates the business system failure.

We had made progress in certain areas though. We have a kit deal, significant sponsorship from a global brand, and a choice of grounds to play at. We have 232 players and 37 coaches available to select a team from. We have also identified strong local authority support for our own stadium, and whilst some have criticised us for even considering a new stadium option, their rush to judgement ignores the stark reality that rugby at the higher levels needs supplementary income to survive without owner funding - which is the single point of failure we are determined to avoid. Rugby alone will not provide a sustainable business, until it is properly governed and financially supported.

The arrangements and direction regarding the rugby creditors has also been troublesome. We were handed the responsibility of others to identify, validate, audit, and settle the rugby creditor claims inherited from the previous administration. We established a system to manage this process and acknowledged our moral obligations to complete it.

Following our regrettable exit from the Championship, our understanding is that the rugby creditors will now revert back to the administrators for the claims to be pursued against Wasps Holdings Limited (In Administration). We will work with the administrators on this.

So, what will happen now?

The journey continues with utter determination and commitment to ensure that WASPS continues its 156-year history in a sustainable rugby environment that shares the vision
and values that the new club aspires to. We are extremely grateful for the loyal support and concern from our global fan base.

Our silence has been deliberate and necessary. Firstly, we had nothing definitive to say that couldn?t have changed the following day, and often did, and secondly, we only recovered our social media accounts and rebuilt a new web site in the first week of May. You will hear more from us soon.

Thare some very telling statements in this announcements. From these, it is easy to deduce that the RFU have acted like a load of Knuts.

In addition, I detect that Scrivs and the team are by no means throwing in the towel. Far from it. As the statement says, You will hear more from us soon.

Alternative competion to play in?

[COYW15]

Our exit from the Rugby Football Union
You will hear more from us soon

That was my line of thinking Heathen. Seems to be a very deliberate choice of words. But I shan't get my hopes up.

[W2APS]

Agreed, when your investors don't have the RFU or Prem rugby to deal with anymore, but a different body/league (can it be anything but URC?) then maybe they'll be more interested in putting the money in. Ealing we're rumoured to be looking at URC too weren't they?
The Wasps announcement does only say no more RFU after all.

[Bloke in North Dorset]

Is there a precedent for World Rugby to allow a team from one rugby jurisdiction to play in another jurisdiction without the explicit approval of their home jurisdictions' rugby authority  approval, or even with it?

I can't see the RFU allowing it so maybe Wasps will have to move to the jurisdiction they want to play in.

[Westy68]

Our exit from the Rugby Football Union
You will hear more from us soon

That was my line of thinking Heathen. Seems to be a very deliberate choice of words. But I shan't get my hopes up.

We heard nothing from them for months, doubt we will hear something soon. I just can?t believe how shambolic the previous board, the current board and the rfu have acted. None of them have a clue and shame on them for not realising that

[Garuda]

Agreed, when your investors don't have the RFU or Prem rugby to deal with anymore, but a different body/league (can it be anything but URC?) then maybe they'll be more interested in putting the money in. Ealing we're rumoured to be looking at URC too weren't they?
The Wasps announcement does only say no more RFU after all.

We couldn't muster up the funds to play in the Championship. Any hope of top level rugby has gone. As for an alternative competition (requiring large sums of money to appear out of thin air and RFU approval) - that's just pure fantasy. Wasps died yesterday. Let us rest in peace.

[JonnyD]

Do the rugby creditors include the players ie. Brad mentioning being owed a few 100k in image rights?
I imagine Launchbury and a few others would fall into that catergory as well.
Wages might have been seen as an unavoidable loss at the time but the image rights would be big big money for rugby players and as Brad said , a big contribution to his retirement pot.

[BlackAndGoldSunglasses]

Just.... bollocks, aye?

[NellyWellyWaspy]

Do the rugby creditors include the players ie. Brad mentioning being owed a few 100k in image rights?

Yes. No one has quantified the extent of Wasps rugby creditors, but I would be surprised if it did not run to ?10-20m, of the ?90-100m total debt. Not having to pay that will relieve that pressure on the club.

My view is that size of debt would have been yet another millstone that would have eventually dragged the club down again.

In order for any team to start again, they are treated by the RFU as an entirely new club. As such, before you can apply, you must have a ground (Henley would do I guess), some facilities (toilets, changing rooms), coaches and medics, and a team (at least 23 players of the required mix). Wasps should have sorted all that ages ago on the basis that they would have to start again. Could be totally amateur, or at least expenses based payments. The team would have had to have played some 'friendly' games with local clubs, likely some that are in the league they want to join, to show they are playing at the right level. Initially that would be the bottom most league in your area. The RFU would check all this over, talk to the clubs in that league, and would, all things being equal, let you join the next year. All sorts of stuff gets checked, so it can take months. If they decide your team is too good for that league, and with the agreement of the clubs in that league, they might ask you to play some more friendlies against clubs in the next league up, and might allow you in to that one. Had Wasps started that process back in November, as a back stop, they might now be in a position to rejoin the league system. As it is, there is no chance to start that now ready for next season. But, the RFU can make it up as they go along. That is the process, I think. The statement from Wasps suggests that they might now be considering this. Better get their skates on is all I can say.

[baldpaul101]

Not sure how Wasps can seriously set up a side for Midlands Counties 4 or whatever.
Why would any amateur player want to join when they would already be playing for a club with their own ground, club house, history, mins & juniors & a place in a community?

Sadly I think this will be it & Wasp name will continue only under the Wasps FC banner. All things considered its probably the best option now.

[RogerE]

Having talked to several former players the impression I get is that they needed to find ?2.75million in image rights payments alone. Who is going to put that up as a "loss leader" to start a "company" that is subject to such vagaries as being involved with the PRL/RFU. Only billionaires who want a loss making ego project as a way to avoid paying money to the tax man.

One plus (if anything in the current situation can be referred to as a plus) is that they are under no obligation to remain in the Midlands, so can legitimately return to the London area.

In my view the best thing would be to re-unite with Wasps RFC and use the current first team as a basis for the push upwards, saving 3 or 4 seasons

[baldpaul101]

So whats assets do "Wasps" now have?
The EPIC is owned by a Chris Holland. They no longer have a place in any league. I assume its just the badge (that no one likes!) & the memorabilia?
Even stuff like kit & tackle pads etc would have been part of the old club (even Paulo & Jacobs now famous away kit!).

My point is that Wasps now no longer really exist do they?

[NellyWellyWaspy]

Not sure how Wasps can seriously set up a side for Midlands Counties 4 or whatever.
Why would any amateur player want to join when they would already be playing for a club with their own ground, club house, history, mins & juniors & a place in a community?

Sadly I think this will be it & Wasp name will continue only under the Wasps FC banner. All things considered its probably the best option now.

I cannot see the amateur club wanting to get involved. I wouldn't if I was them. They are quite happy where they are, and have no pretensions of grandeur.

[NellyWellyWaspy]

So whats assets do "Wasps" now have?
The EPIC is owned by a Chris Holland. They no longer have a place in any league. I assume its just the badge (that no one likes!) & the memorabilia?
Even stuff like kit & tackle pads etc would have been part of the old club (even Paulo & Jacobs now famous away kit!).

My point is that Wasps now no longer really exist do they?

They haven't since that last game. The club is what Holland and the other 'Legends' want, plus its fans, such as they are. In effect, the RFU have licked whatever plans Holland & Co had in the nuts, leaving them free to do what they want. Throw in the towel, cash in any any remaining assets via a sale, and walk away. Or start again, maybe using EPIC as the starting point.

Some have said that there are no players out there, as they will already be playing. That is not necessarily true. There are a lot of youngsters (18-24) who have no place to play. Some of them will be very good players, with no delusions of fame, just a desire to play. The academy players from Worcester and Wasps to start. And all the academy players who are being dumped by the remaining PRL clubs, and ones who were dumped last year, and maybe before that. Let me give an example. Will Goodrick-Clarke was an academy player at Gloucester. They dumped him because they either had no room in the main squad, or they thought he wasn't good enough. Richmond signed him. From there to London Irish, where he has been in the first team since. Launchbury was much the same. The game is littered with such examples. We are not looking for Prem level players either. Just ones who will more than compete at that bottom level.

In the past there were a few such players here and there. Now there are a load of them. Every club is shedding players. And maybe more if Falcons and Irish go the way of others. Pay isn't the issue. Opportunity is. Accommodation can be found, as can jobs or education courses.

[Sliminator]

Rather than growing the game the RFU and PRL are shrinking it at an alarming rate, both pro and amateur.

I fear that Irish's takeover will fail for the same reason that Wasps couldn't get investors over the line and Atlas's American backers backed out. I doubt that any of the current prem club owners would be there if they had to be under the same financial scrutiny as any potential new owners. As it stands I doubt anyone will be able to sell a professional rugby club so they had better have deep pockets.