Reynolds: Don't prop up failures like Wasps

WASPS’ presence in the Championship next season after going bust with debts of more than £100m will send out the wrong signal and encourage other clubs to take financial risks. 

- PAUL REES

That is the view of Gary Reynolds, the chief executive of Rams who have been in the promotion hunt from National 1 all season.

“I have been a big supporter of Wasps over the years,” said Reynolds. “I used to watch them when they played at Sudbury and was in Dublin when they beat Munster in the Heineken Cup semi-final in 2004.

“I have followed them around and love the club but after going bust, they should be starting at the bottom again, like Richmond, London Scottish and London Welsh had to.

“The RFU got it right then but what is happening with Wasps is crazy. It is sad because you do not want to see clubs fail, but if they do they have to face the consequences.

“In economics, you are taught about moral hazard: rescue someone and it sends a signal to the market that if you take more risks and it does not work out someone will come to your aid.