Wasps' exclusion from the Championship next season will be a blow to the league, says director of rugby of champions Jersey Reds, Harvey Biljon.
It means they will have to start at the bottom of the league system.
"I was getting quite excited about having a rugby institution like Wasps in the Championship," Biljon told BBC Radio Jersey.
"I think it would have brought a new competitor into our league and it would have been great to see them try and build to get back to where they once were.
"The fact that they're not going to be in the league makes me very sad for rugby in England as a whole because Wasps are, and have always been, one of the major clubs in English rugby," added Biljon, who spent time as a player with Wasps before moving into coaching.
The two-time European champions could end up in either the North or South division of the 10th tier Counties 4 Midlands West league.
Their expulsion from the Premiership in October came not long after Worcester were also removed from the top tier after going into administration.
London Irish have also had financial concerns in recent weeks as the impact of financial losses after the Covid-19 pandemic continues to hit top-flight sides.
Jersey will not be promoted to the Premiership - which will continue to have 11 teams next season - as their ground does not meet the league's minimum standards.
"At the moment I'm pretty frustrated around what the landscape of rugby looks like from a personal point of view," added Biljon.
"The fact that teams are not given the opportunity to grow with the game, and when there's anything positive going in the game you're not allowed to take advantage of that - and Jersey Reds is an example of that.
"We've just won the Championship, we've seen the chaos going on in the Premiership, but there's an opportunity to generate some real excitement around Jersey Reds and get some support and backing that hopefully would drive not only the game forward, but Jersey Reds as its own rugby team."