Premiership: Worcester Warriors enter into preferred bidder agreement with former CEO’s consortium

Financially-beleaguered Premiership outfit Worcester Warriors have entered into a preferred bidder agreement with the consortium of their former chief executive Jim O’Toole.

Worcester went into administration earlier this month and are also partially liquidated with HM Revenue and Customs pursuing unpaid tax totalling an estimated amount of ?6million.

The Warriors were also suspended from the Premiership and face relegation at the end of the current season.

Steve Diamond consortium bid unsuccessful

Former Worcester director of rugby Steve Diamond had launched a rival bid to buy the Sixways-based club through his Sixways Village consortium but that offer was unsuccessful.

“We are grateful to the Begbies Traynor team for their recognition of our consortium as the exclusive preferred buyer,” O’Toole and his business partner James Sandford, who are backed by American investment, said in a statement.

“As has always been, our focus remains on retaining an elite-level rugby club based on a viable long-term strategic business model at Sixways for the immediate benefit of the community of Worcestershire and beyond into the wider game of rugby.

“This is a positive and major step in the process. The process remains complex, needs complete confidentiality and will require our full attention until it runs its course.

“To this end, we will be making no further comment in the media or on social media until this exclusive formal process concludes.”

Since Worcester’s suspension, and due to their impending relegation from the Premiership, more than 20 players have left the club for greener pastures with some signing short-term deals.

However, England duo Ollie Lawrence (centre) and Ted Hill (back-row) have signed long-term contracts with Bath, while up-and-coming fly-half Fin Smith has joined Northampton Saints, and Scotland flyer Duhan van der Merwe has returned to Edinburgh.

Julie Palmer, one of the Warriors’ joint administrators, said: “I am pleased to announce that we have entered into a preferred bidder agreement with Atlas Worcester Warriors Rugby Club Limited to acquire the rugby club together with the stadium and surrounding land.

“The acquiring consortium represented by Jim O’Toole and James Sandford is fully committed to moving as quickly as possible to satisfy the criteria of the RFU and PRL that they are fully funded to take the club forward with the ambition of returning to the Premiership as soon as possible.

“This remains a complex transaction with pressing deadlines but I am hopeful that all stakeholders will move with the requisite speed to rescue this club which has excellent facilities, strong community ties and huge potential.

“I would also like to record my heartfelt thanks to the dedicated and hardworking staff who have helped us to stage a programme of non-rugby events in the coming weeks and provided invaluable assistance to the joint administrators.

“Details of the other parties involved in the consortium will be shared once the sale is concluded and no further comment will be made until that time.

Worcester Warriors Women back in action

“Separately I am pleased that Worcester Warrior women have been able to recommence playing and wish them the best for the remainder of the season.”

The Premiership was reduced to 11 clubs on Friday when the Rugby Football Union confirmed Wasps’ relegation.

Wasps, who also went into administration two weeks ago, received a winding-up order from HM Revenue and Customs for ?2million in unpaid tax. They were also required to repay a ?35m bond which had helped finance the club’s relocation to Coventry in 2014.

READ MORE:?Wasps: Administrators accept offer to buy financially-stricken Premiership club