Wasps have signed Tom Palmer, Stephen Jones and James Haskell but the viability of those deals remains in the balance
Wasps were last night attempting to convince new recruit Stephen Jones and two returning England Test players, Tom Palmer and James Haskell, that their futures and contracts were secure at the club despite the threat of administration.
The club is also attempting to ward off interest in the England scrum-half, Joe Simpson, and rising stars Joe Launchbury, Christian Wade and Elliot Daly, after revealing takeover talks had collapsed and administration was a possibility.
The deal for Jones, 104-times capped by Wales but currently second choice for his club, the Scarlets and his country behind Rhys Priestland, was confirmed on Wednesday along with three others with the Wasps chief executive, Chris Thomas, saying: "While everyone is aware that the club is seeking investment as a matter of urgency … like every other club at this time, we have been working hard to continue to put our squad together for next season."
Thomas also announced the signings of Ashley Johnson, the Cheetahs and Springbok back row, and props Phil Swainston from Leeds and Will Taylor from Ospreys before adding: "But while it is pleasing to announce further additions to the squad; of course our priority now is concluding a deal which will secure our financial future."
That means finding a new owner to take over from Steve Hayes sooner rather than later. The club has funds to complete the season, but if administration follows, relegation would be almost inevitable as would the loss of key players.
After struggling with endless injuries and life near the foot of the table, the knowledge that Haskell and Palmer were returning had provided Dai Young, the director of rugby, with two of the brighter moments in his first season in the Premiership. However Palmer, who is 32, and Haskell, currently in New Zealand, will not want to jeopardise their Tests careers with another season outside the Premiership, which is what Wasps face should they slip into administration. RFU rules would deduct 15 points and, as of today, that would leave the twice champions of Europe seven points adrift of bottom club Newcastle with only three games to play.
Back at Christmas, things looked a lot brighter with Jim Clifford of Baker Tilly, who is handling the sale, reporting interest from six potential buyers, four of whom were seen as serious options.
There were bids from Eastern Europe, the Middle East and South Africa involving property, financial and sports investors. There was also suggested interest from an existing sporting business, thought to be Brentford football club, but their chief executive, Mark Devlin, on Wednesday said the talks had been solely about ground sharing and did not involve Hayes.
Wasps had been on the market for around £9m, but during a recession, with money tight, their books have not made happy reading with running costs of £8m outstripping income by around £2m. The 2010 accounts showed a loss of £3.1m and a bank overdraft of £1.3m. Hayes was owed more than £8m on loans made since he bought the club in 2008.
Wasps do not own Adams Park or their training ground in Acton. In effect the club's assets are the players and their share in Premier Rugby, which has promised its "full support" in the search for a new investor. That requires a new owner. Sources at Wasps were keen to scotch suggestions that they could be saved by an injection of £2m. "We are not looking for short-term funding. We are looking for an owner."
The problem is that even in the good times, Wasps needed a sugar daddy to help out. They may have twice been champions of Europe and five times the English champions, but even when they were Heineken Cup champions they struggled to fill the 10,500 capacity Adams Park.
They made ends meet, or almost meet, by recruiting brilliantly. Nigel Melville put the side together and won the first league title of the professional era in 1997. Warren Gatland and Shaun Edwards, added three more from 2003 to 2005 – doing the Heineken and Premiership double in 2004 – and Ian McGeechan and Edwards added a second Heineken Cup in 2007.
However, by 2008 and their most recent domestic title, the lack of investment was beginning to show. Lawrence Dallaglio lifted the Premiership trophy and retired, following influential players like Alex King and Fraser Waters out of the club.
Haskell, Riki Flutey, and Palmer left the following season followed by Danny Cipriani, Phil Vickery, Serge Betsen, Josh Lewsey and Simon Shaw. Injuries also ended the careers of Joe Worsley, Dan Ward-Smith and Steve Thompson while Tom Rees, once viewed as a future England captain, retired last month.
Hayes bought the club from Chris Wright, then the chairman of the music group Chrysalis, in 2008, but Wasps were frequently outbid, particularly by French and Irish teams, when they went recruiting. Before Young was appointed, a former player was offered the job, but told that if he wanted to enhance the playing budget, he could only use any money saved by other coaches or players being allowed to go.
He declined the invitation and a poor start of the season would not have tempted potential buyers. However two wins from the last three league games have improved the picture although relegation could still be an issue when Wasps meet Newcastle on the final day of the regular season at Adams Park. That is unless administration has already settled things.