RFU makes decision on Worcester Warriors and Wasps future
The future of Worcester Warriors hangs in the balance after the RFU rejected the takeover of the club by an American consortium.
Wasps, however, will be playing in the Championship next year after administrators FRP agreed to an offer by a consortium from members of Wasps Legends.
Both clubs were relegated from the Premiership after entering administration, with both appeals rejected to overturn the decision.
The bid for Warriors from Atlas Worcester Warriors Ltd which is fronted by Jim O’Toole and James Sandford has been refused by the RFU who were not satisfied with the “financial position of the buyer and their ability to continue to fund the club and to deliver on the business plan”.
The RFU has now urged the club’s administrator Begbies Traynor to consider bids which secure professional rugby at Sixways stadium. In its statement, the RFU says it was, “concerned by the public statement from the bidders that they are prepared to acquire the site and develop it without a rugby offering.
“The RFU urges the administrator not to progress any sale that does not guarantee a future for rugby within the local community.
“For these reasons the RFU does not have comfort that the business plan can be funded, nor that rugby is at the centre of the proposal for the business which is an American medical services company.
“The bidders for Worcester Warriors have not accepted the regulatory position and have not sufficiently engaged with the necessary conditions required and have therefore put themselves in a position where the RFU Board could not approve their bid”.
Julie Palmer, Joint Administrator of Worcester Warriors said in a statement:
“The Joint Administrators/Receivers are willing to re-enter into discussions with any interested parties although they will first need to satisfy the RFU’s takeover process given the conditions being placed on any proposed purchase. We await confirmation from the RFU on the relevant timelines for them to reach this position given the urgency of the matter. This must include total clarity on the rugby creditor position given the very late notice of an additional material claim from the PRL which other interested parties were not aware of.
“The Joint Administrators statutory duty is to maximise the return to creditors. Therefore, any offer from interested parties must equal or exceed the offer made by Atlas Worcester Warriors who we were informed were able to proceed on an outright purchase of the business and assets excluding the P share. We received notice that the P share option price is being exercised by means of the call option and can confirm that the accepted offer would have resulted in the best return to creditors.
“We urge the relevant stakeholders to work collaboratively and in a timely manner with all interested parties (including Atlas Worcester Warriors) to ensure that elite rugby remains in Worcester.
“We have also offered an urgent meeting over the weekend between the RFU and Atlas Worcester Warriors to try and resolve the position. Both of these parties have made it consistently clear that they remain committed to returning rugby to Worcester which extends to the Women’s team.”
