Originally Posted by irishbucsfan
Munster can't pay their debt on Thomond Park though. Should they be banned from making signings or playing in Europe until they can? Of course not. I think its unfair for Irish people to cast opinions on English clubs while our provinces operate outside their means in exactly the same way, propped up by the IRFU.
Wasps problem is their owner can't afford to keep them on any more and they're not going to get support for the new stadium they want now.
They've signed two journeymen, neither of whom were starting at their previous clubs.
What are they supposed to do? Stop spending money and just slink away into the national league? That is exactly what would put them under.
There is nothing wrong with having debt as long as you can pay it like clearly Munster can. Every club makes losses at sometime but its whether you can operate at those losses. Wasps have taken on debt that they cant afford to repay as opposed to Munster who can afford to pay off their debt to creditors. Wasps used money they don't have to boost their hopes of staying in the league (which is only barely working) and are gaining an unfair advantage over their competitors who are living within their own means.
And yes they are supposed to stop spending money they don't have. It's the accumulation of debt over years I'd guess which means they didn't have it a few years back when Dallalgio and co were there. That is a guess but £2m debt with no stadium repayments (they rent training facilities and Adams Park) probably means they spent too much on salaries. I can't imagine Adams Park costs much in rent considering it isn't the most up to date ground either.
Wasps don't even have any assets to put up as security against loans they may have taken out. Their only assets are players and any worthwhile have all long gone. They may have to ask the returning Haskell to look elsewhere. They basically have nothing to liquidate if they go under.
I'm sorry to see them in their sorry state but if they don't get a new buyer who can negotiate their debts, relegation is a fair punishment. They have taken an unfair financial advatage over their competitiors and need a punishment that is fitting of the crime. It may set the club back a couple of years but they'll come back like Quins and Northampton have before them. But their greatest disadvantage is having no stadium of their own. They were terribly unlucky not to get permission for their stadium. Promoted clubs like Quins, Northampton and Exeter were able to build their now very stable clubs on ground they called their own.
Honestly best of luck to Wasps with finding a new owner. They are a great club and the people of High Wycome are lovely people as I found out last year when I was there for two weeks. I'm sure they'll find one, Wasps is still a very marketable brand but I'd still be worried.