Wasps suspended from Premiership and set to enter administration 'within days'
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Wasps are ninth in the Premiership table, having won just one of their four games this season
Financially troubled Wasps have been suspended from the Premiership after announcing they are "likely" to go into administration "within days".
The club have twice filed notice to get insolvency experts in to help with their debts, which run to tens of millions of pounds.
They face becoming the second side to go into administration within weeks, following Worcester last month.
Their suspension was confirmed by the RFU's Club Financial Viability Group.
"We appreciate this is a very difficult time for Wasps players, staff and supporters who will be concerned at news that the club is likely to enter administration," the Rugby Football Union said in a statement.
"The RFU will continue to work with the club, PRL and any potential administrator or future investors to find the best possible outcome for the club."
Wasps can reapply for the suspension to be lifted if they are able to demonstrate the means and commitment to pay their rugby creditors.
In a statement following the announcement of their pending administration, Wasps Holdings Limited said they had been working "tirelessly" to secure the club's future.
"We strongly believe it is the right course of action," the statement added.
Coventry-based Wasps will not fulfil this Saturday's Premiership game at Exeter following the news, saying they "recognise that this will not only impact on our players, staff and supporters, but also Exeter Chiefs and the wider rugby community".
Worcester were suspended and relegated to the Championship for next season last week, a day after players and staff had their contracts terminated when the club was wound up.
The Warriors' results were expunged and the Premiership - English rugby union's top division - reduced to 12 clubs for the rest of the season, though the club are appealing against the punishments.
However, if Wasps were to go into administration, they would also face relegation.
Under Rugby Football Union rules, any club that enters administration is automatically relegated next season, unless they can prove it was a no-fault insolvency.
With Championship clubs having recently struggled to meet the Minimum Standards Criteria to enable promotion to the Premiership, relegation of both clubs could mean a shrinking of the league, which is understood could have a knock-on effect regarding media rights.
ITV agreed a new deal with Premiership Rugby to broadcast a number of matches, including the Twickenham final, on free-to-air television earlier this year.
After Worcester went into administration, Premiership Rugby's chief executive Simon Massie-Taylor told BBC Sport that "financial viability and visibility is a big theme" moving forward and said he had asked all clubs to provide a "really clear picture" of their financial position.
Wasps have 'insufficient cash' to carry on operations
Wasps had been hopeful of securing new funding to help with a £35m debt owed to bond holders following their relocation from London in 2014, and HM Revenues and Customs pursuing them for unpaid taxes.
Despite saying talks with interested parties are "ongoing", the club have been forced to take action.
"Since filing a notice of intention to appoint administrators on 21 September, we have been working tirelessly to secure the long-term future for Wasps Holdings Limited, and all of the organisations and clubs that sit within the Group," the statement continued.
"Negotiations to secure deals that will allow the men's and women's rugby teams, netball team and the arena and associated business to move forward are ongoing.
"However, it has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group, and it is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter."
Wasps' decision was taken after revealing they have "insufficient cash" to carry on operations without new investment. Interested parties were asked to provide "bridging finance" to bide the club enough time for "a solvent solution" to be found.
"Regrettably, this has not been possible to date, although we will continue to pursue this until the very last opportunity," the statement said.
The club's official beer supplier, Heineken, said it had "uplifted stock that hadn't been paid for" after being unable to find a "workable solution" following Wasps' notice of intention to appoint administrators.
Any move into administration would throw doubt on Wasps' future at their home stadium, the Coventry Building Society Arena.
The freehold of the CBS Arena is held by Coventry City Council, who granted Wasps a 250-year lease when the club bought the stadium's operating company as part of their move to the West Midlands eight years ago.
The council have warned the club that any insolvency proceedings could see Wasps forfeit ownership of the ground.
The future ownership of the stadium is also under the spotlight following the news that American billionaire John McEvoy is considering a bid to buy the ground and its other tenant, Championship football club Coventry City.
In a statement the Sky Blues said: "We are aware of the statement by Wasps Group today, and we remain in contact with Wasps Group regarding the current situation."
Analysis
Laura Scott, BBC sports news correspondent
This is another devastating day for Premiership rugby. Just a couple of weeks after the demise of fellow Midlands club Worcester Warriors, Wasps look set to follow suit in entering administration.
This is not just very damaging for rugby in the West Midlands, but English rugby more generally. The fear is that other clubs could find themselves in similarly perilous positions going forward, given the continued fallout from Covid and rising energy prices making running a club more expensive.
The situations at Worcester and Wasps have a knock-on effect on other clubs, with Gloucester and Exeter Chiefs among those losing out on the revenue from hosting home fixtures against them.
Exeter's Maunder 'really sorry' for Wasps players
Jack Maunder was scrum-half when Exeter beat Wasps in the 2020 Premiership final at Twickenham
Exeter scrum-half Jack Maunder was in the middle of his pre-match media call before Wasps' trip to Sandy Park when the news broke.
Maunder was part of the Exeter side that beat Wasps 19-13 in the 2020 Premiership final as the Chiefs won a domestic and European double.
"We know quite a few of the boys from Worcester and Wasps, they're boys that have been around on the circuit for a long time," Maunder, whose side will now play Bristol in a friendly on Saturday, told BBC Sport.
"It's a really weird feeling and I just feel really sorry for those boys and those staff.
"They've got a great set-up there at Wasps, they've got some great coaches and it seems really sad.
"It's just really tough for those boys and we're not sure what's going to happen with Wasps. It was really sad what happened to Worcester and I just wish all of those boys the best of luck moving forward."
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