Bid launched by former CEO to save Wasps from extinction

As Wasps file a second intention to appoint administrators, a bid is being spearheaded by a former boss to save the club.

Sky News has reported that former CEO and non-executive director David Armstrong is working with Terminum Capital on a bid for Wasps and the Coventry Building Society Arena.

The bid from Armstrong, who stepped down as chief executive in 2017, and the investment firm is said to be worth more than £50m, with a further £12m for working capital.

The club’s owner, Wasps Holdings Limited, released a statement on the 5th October after filing a second intention, saying that talks with investors are at “a relatively advanced stage” as it faces a winding-up order from HMRC over around £2m in tax arrears.

Wasps are also facing the repayment of a £35m bond that was used to help fund their relocation from High Wycombe to Coventry in 2014. This was due in May.

Sky has also reported that the Terminum Capital bid, is said to have asked Premiership Rugby Limited, the league’s administrator and the Rugby Football Union that the deal made during the administration process should not result in the club’s relegation.

A clause may also protect the club, as it says the RFU will waive or amend sanctions over an insolvency event that the club was unable to prevent. The pandemic is listed as a reason that the RFU will take into consideration.

“Since filing the original notice of intention on 21 September, a number of additional potential investors and funders have come forward.

“Discussions are now at a relatively advanced stage and we remain hopeful of securing a deal that will allow the group, and the entities that sit within it, to move forward.

“We would like to thank all stakeholders for their engagement during this process and in particular the constructive support and approach provided by the Rugby Football Union and Premiership Rugby.

“This will continue to be vitally important as negotiations with interested parties proceed and we remain in regular dialogue with both organisations.

“While the financial circumstances facing the group are extremely challenging, we remain optimistic about a positive outcome and will keep our players, staff, supporters, partners, bondholders and suppliers updated as this process moves forward.”

If Wasps fail to land the funding they need, they could face relegation from the Premiership.