No exceptions can be made for Wasps – Moore
FORMER England hooker Brian Moore believes there can be ‘no exceptions’ when it comes to Gallagher Premiership clubs being relegated if they go into administration.
His comments came after Wasps legend Lawrence Dallaglio claimed his former club should be spared from exiting the top tier of English rugby should the club enter into administration.
With HMRC chasing payment for an unpaid tax bill, and £35 million owed to bondholders, Wasps Holdings Limited has twice filed a notice of its intention to appoint an administrator. League rules are clear that any team entering into administration will be punished with relegation. Only last week, fellow crisis club Worcester Warriors were suspended for the rest of the 2022/23 season and relegated to the Championship due to insolvency.
However, should Wasps enter into administration, they could avoid relegation if the insolvency event ‘would not have occurred but for an event or circumstance which was beyond the control and without the fault or negligence of the affected club’.
Listed among the ‘no fault’ reasons are events such as riot, war and invasion - but more appropriately, a national-level pandemic.
Dallaglio had previously used his platform with BT Sport to explain the uniqueness of the Wasps business model, which includes banqueting, conferencing, hosting events, hotel and a casino - all of which would’ve been detrimentally impacted by Covid-19.
The England World Cup winner’s latest comments reaffirmed the point that Wasps are not in administration, but should that eventuality occur, the RFU ‘will have some decisions to make’, adding ‘do you want to lose one of the biggest brands in club rugby, in world rugby and one of the brands that’s been one of the most successful sides in the Premiership. Let’s hope it doesn’t come to that.’
It’s an argument that didn’t wash with Moore. Writing for the Telegraph, the 69-times capped former British Lion said: “Sorry, but the rules were agreed by everybody; equally big clubs have survived suffering relegation and not complained. There is a reason this sort of deal is proposed – they get the assets cheaper and leave a lot of little people out of pocket.
“No club can claim to have contributed so much that it is a special case. Would Wasps supporters back a similar call if it came from Quins who, despite winning nowhere near as much, are very much the equal of Wasps when it comes to rugby brands?”
Dallaglio’s comments came in BT Sport’s coverage ahead of the Premiership round five clash between Wasps and Northampton Saints. At a similar time, Sky News broke its story that former Wasps chief executive David Armstrong, who was present at Sunday’s game, was spearheading a takeover with the assistance of Termimum Capital.
The report claimed the deal is worth £50m with a further £12m earmarked for working capital and that the bid included a request being made to Premiership Rugby Limited, the league’s administrator, and the RFU, the sport’s governing body, that a deal executed through an administration process should not result in the club’s relegation.