The RFU has announced that Wasps have been banned from the Premiership and Rugby Cup for the remainder of the year.
The Coventry-based team will be demoted from the top division and have their season’s records erased.
Wasps are under administration, but if a suitable investment is made, they will start playing in the Championship the following year.
There will only be 11 teams left in the Premiership after Worcester Warriors’ collapse last month.
Wasps, a six-time English champion and two-time European Cup winner, entered administration on October 17 after being temporarily banned from the Premiership by the RFU a few days earlier.
167 players and club employees were all laid off.
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Although their matchup with the Newcastle Falcons on Sunday was announced as being postponed, all of their upcoming matchups will no longer be on the calendar.
The RFU’s club financial viability panel affirmed the decision, although Wasps have the option to appeal if they can demonstrate that it was a no-fault bankruptcy.
The group released a statement in which it expressed its “encouragement at the progress made by the administrators and it has decided to suspend the team in order to support the prospect of securing a deal with the right investor and giving the club the best chance for a long-term sustainable future.”
Added was: “The RFU and PRL must do due diligence and provide their permission before any possible investors or management can proceed. The payment of all rugby creditors will be a must for any future transaction.”