The tape appears to be stretched at both top and bottom edges but especially the bottom edge where the picture control track lies. Tapes stretch more easily at the edges, creating a frilled or bunched effect.
The problem is we can no longer rely on tape "back tension" to make the now stretched tape edges press reliably against the A/C head. We have to find another way. There are possible solutions but AFAIK they require specialist techniques and/or components. If the recording is a one off and valuable, Specs Bros might be worth consulting http://www.specsbros.com/
I wouldnt play the tape in a machine of dubious condition as this sort of damage is usually caused
by just that, playing a tape in a faulty machine. I would only test play a valuable but damaged tape recording in a machine known to be in excellent condition, and even then be vary careful in doing so.