The financial crisis gripping English rugby has worsened with Wasps, one of the nation's most storied clubs, saying they are likely to enter into administration because of their debts.
Wasps were suspended from the Premiership by England's Rugby Football Union (RFU) on Wednesday, a week after another top-flight club, Worcester Warriors, were placed in compulsory liquidation as they were pursued for unpaid tax.
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Both teams would be automatically relegated to the second-tier Championship for going into administration - a form of bankruptcy protection - under RFU regulations.
Wasps, two-time European champions based in Coventry in England's Midlands following the club's relocation from London in 2014, have pulled out of their Premiership match against Exeter scheduled for Saturday.
Wasps said they had "insufficient cash at this time to continue to fund operations" until a solution could be found to secure their long-term financial future.
Wasps have a debt of Stg 35 million ($A62 million) that needs repaying or refinancing and have been looking to get in insolvency experts in to help with their financial issues.
But a statement from Wasps Holdings Limited said "it has become clear that there is likely to be insufficient time to find a solvent solution for the companies within the group.
"...It is therefore likely that they will enter into administration in the coming days with a view to concluding deals shortly thereafter.
"While these are challenging times, we remain confident that new owners will be found that will allow the clubs and businesses within the group to move forward."
Wasps also have a women's rugby team and a netball team that will be affected.
Players and staff at Worcester have had their contracts terminated amid their own financial problems, with the club owing Britain's tax authority about Stg 6 million ($A11 million).
Owners Colin Goldring and Jason Whittingham have been accused of asset-stripping the Warriors, whose men's team have been in the Premiership since 2015.
"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 RFU 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."
