CVA proposed for rugby club
Leeds RUFC, trading as Yorkshire Carnegie, has proposed a Company Voluntary Agreement (CVA) with its creditors, with the squad moving to part-time contracts.
Julian Pitts and Nick Reed of Begbies Traynor in Leeds have been approached to act as joint nominees and supervisors in the (CVA) of Leeds Rugby Union Football Club Limited (LRUFC) which trades as Yorkshire Carnegie.
The proposal follows a change in the shareholder structure with Yorkshire Tykes Ltd (YTL), the consortium of investors which had supported the club since 2014, no longer able to continue funding at previous levels.
The rugby union club plays at Emerald Headingly stadium and said that, like many clubs in the Championship, the operation of Yorkshire Carnegie as a rugby club does not itself generate sufficient income to sustain a full time professional squad and was reliant on support from YTL.
A statement said: “Whilst the club and directors worked hard to replace the loss of funding support, they have proved unable to do so. LRUFC is, therefore, proposing a CVA to its creditors. The new operational break even plan for the 2019/20 season includes the squad moving from full-time to part-time.”
The proposed CVA will be achieved following a lump sum contribution from YTL which will enable a dividend to be paid to unsecured creditors.
The club’s board said: “Directors of Leeds RUFC and its holding company Yorkshire Tykes Limited, whose consortium of investors have supported the clubs since 2014, have worked hard to replace the significant loss of funding support but no new investors have been found.
“A new operational, break even plan for the 2019-20 season has been presented to the RFU with the Yorkshire Carnegie club continuing to stage matches at Emerald Headingley Stadium and the team operating from the Leeds Rugby facilities at Kirkstall.
“The Board hope creditors will continue to support the club and approve the CVA to ensure Yorkshire Carnegie continue to operate in the Championship in 2019-20 and beyond.”