Wasps RFC have asked their local authority for £13m in funding as the club struggles to keep their head above water.
It is believed that the cause of the issue is Wasp’s stadium business which has put a significant strain on the club’s finances.
Having signed a 250-year lease on the Coventry Building Society Arena seven years ago, the club’s move away from London to Coventry was hailed as a financial god send.
However now unfortunately for the club it would appear that the move has been more of a detriment to their long-term stability.
The news became public when it was reported that the club has put a delay on the repayment on its bond scheme with investors not yet receiving their payment for May.
Of course, the covid-19 pandemic didn’t help with the stadium business’s most recent filing showing a loss of £18.5m with a net total liability of £54.7m for 2020 and 2021.
In terms of the bondholder debt issued was made against the value of the arena. This therefore means that should the club be unable to repay their bondholders then the stadium business and its assets would be sold off to recover the debt.
This news comes on the heels of the Premiership publishing its first salary cap report yesterday. With the cap set to rise and the current difficulties facing Wasps the Coventry club faces an uphill battle on its hands.
Whilst the club has yet to confirm the details fully, the West Midlands Combined Authority has confirmed that it has received the application.
The news first appeared in Planet Rugby.