The RFU confirms it has withdrawn licence for Wasps to continue to play in league structure, meaning they will not play in 2023/24 Championship; Bill Sweeney, RFU CEO: "This is not the outcome anyone in rugby wanted and all those involved with the club will be deeply disappointed"
Thursday 18 May 2023 19:37, UK
Wasps' licence to play in the Championship next season has been revoked, the Rugby Football Union has announced.
Having gone into administration and then enforced relegation from the Premiership during the course of this season, Wasps were granted a route into England's second tier for the start of next season under new ownership, provided certain conditions were met.
The RFU confirmed on Thursday these had not been satisfied, which means Wasps will now move to the bottom of the rugby union playing pyramid in England.
An RFU statement read: "The Rugby Football Union has withdrawn the licence for Wasps to continue to play in the league structure. This means that Wasps will not be able to play in the Championship next season.
"In order to be sure that Wasps were in a position to play in the Championship, the RFU set a deadline for the club to meet the commitments it had made when the licence was first approved and recommit to participating in the Championship in 2023/24. These included evidencing payment to rugby creditors and putting in place suitable governance structures including a majority independent board and a process for managing risk.
"The RFU was also concerned about the lack of progress engaging coaching staff and players. The club stated that it could not meet these commitments, recommit to participating in the Championship in 2023/24 or engage staff of players until further finance was secured.
"The RFU had worked with the club's new owners to give the club the best chance of continuing in the league structure and recognises the effort the new owners have put in to try to make this happen. However, the RFU board decided that in order to give certainty to other clubs, the licence to continue to play is withdrawn."
Bill Sweeney, RFU CEO, added: "This is not the outcome anyone in rugby wanted and all those involved with the club will be deeply disappointed. We have worked with the new owners for the past six months to try to ensure that a robust plan could be put in place for the club to continue to play in the Championship while players and staff could receive monies owed to them.
"The RFU is working closely in partnership with Premiership Rugby and the Rugby Players Association to ensure players are supported. We are also working together at pace to ensure the game emerges from this challenging time on a strong and sound financial footing."
Wasps' demotion to the bottom of the playing pyramid is another depressing episode in the English club game's battle with its shaky financial foundations.
The ambitions that Worcester could be relaunched in the Championship have also ended because of a dispute over terms between their new owners Atlas and the RFU.
Wasps, the winners of six Premiership titles and two European Cups, were intending to play their home games at Worcester's ground Sixways, paying Atlas a fee to do so.
A subsequent Wasps statement read: "It has been an all-consuming seven 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 three to five 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.
"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 fanbase. 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 website in the first week of May. You will hear more from us soon."
