Premiership: Worcester Warriors’ future still uncertain after rejected offer
Wasps will start next season from the Championship after the Rugby Football Union (RFU) approved the club’s takeover. However, Worcester Warriors’ future is still in the balance.
Worcester are still yet to find an approved owner after the Jim O’Toole-led Worcester Warriors Rugby Club Ltd consortium had its bid rejected based on the refusal to meet RFU terms, namely not disposing of the land around the stadium and swift payment of rugby creditors.
The search continues
The RFU plans to help the club’s administrator Begbies Traynor find a new owner through a regulatory assessment carried out by the ‘Club Financial Viability Group’ that holistically considers all aspects of prospective owners.
Should the sale of Worcester be approved, they will join Wasps in the Championship. The RFU released a statement on the matter on Friday.
“The RFU Board was also not satisfied with the information provided, in particular relating to the financial position of the buyer and their ability to continue to fund the club and to deliver on the business plan provided which included significant development at the Sixways site,” it read.
Not enough evidence
“The RFU has not been provided with sufficient evidence of funding. While some information has been provided, this has been only internal P&L information which appears to cover only part of the business of the main shareholder and the RFU was told that no further information could or would be provided.
“This means that there is no information as to debt levels or shareholder funds and no externally verified financial statements have been provided.
“Evidence of a non-binding heads of terms for external off-shore financing has been provided, but this is not committed.
“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 RFU is also concerned by the public statement from the bidders that they are prepared to acquire the site and develop it without a rugby offering.”