Warriors deal on the brink of collapse due to financial demands

Financial demands being made by Worcester Warriors co-owners are reportedly putting the club at risk of going under.

Jason Whittingham and Colin Goldring had been in talks with three buyers with one investor moving at “an especially rapid pace”.

Now, a bid for the club which includes the stadium and the land was submitted on Sunday.

The Times says that the financial terms were “miles away” from what Whittingham and Goldring wanted and the potential investors may be close to walking away.

Warriors are facing a winding-up court hearing over a £6m tax bill.

The company’s accounts for 2020 show it had yet to pay £2.3m in taxes and its 2021 accounts are now overdue.

Warriors retained its staff during the pandemic but lost income during the various lockdowns during which the overwhelming majority of matches were played behind closed doors.

Now, with two home fixtures to play in six days, the club needs to fund operating costs of £120,000 alongside salaries for staff.

Players have been paid, but some staff were only paid 65% of their August salaries.

Simon Massie-Taylor, the chief executive of Premiership Rugby, confirmed that there were genuine fears that Worcester could go to the wall. “The next few weeks are absolutely crucial in determining whether they can find a long-term buyer and financial backer for the club,” he said.

“We have got less than a month for the club to find a solution to the winding-up petition. We and the RFU are trying to support them through that process. We are not in a position to support them financially. It is an independent business that needs to find its own solution.”