Worcester Warriors suspended by RFU and put into administration
- Published
Worcester are banned from the Premiership, Premier 15s, under-18s Academy Cup and Allianz Cup with immediate effect
Worcester Warriors have been suspended from playing and will be put into administration after failing to meet a Rugby Football Union funding ultimatum.
The financially stricken club had to provide proof of a "credible" plan for the future by 17:00 BST on Monday.
The men's team will now be banned from the Premiership and the women's side from the Premier 15s.
Administration means the men's side could be sanctioned with either a points deduction or relegation.
The Department for Digital, Culture, Media and Sport (DCMS), one of the main guarantors of a loan through Sport England, said it had agreed to the directors' request to place Worcester into administration.
The loan, thought to be about £15m, was part of the government's sports survival package during the coronavirus pandemic.
A statement added that it was "in order to give the club the best possible chance of survival, and to protect a significant taxpayer investment".
The development could attract new investment because the club's former chief executive Jim O'Toole heads a consortium interested in saving the club but was not prepared to advance until it was put into administration.
Warriors owners Jason Whittingham and Colin Goldring said putting the club into administration was "the best solution to safeguard the interests of the business and ensure the best chances of a solution that saves the club" after failing to secure "critically needed funding".
"We are grateful to DCMS and Sport England as the Covid-19 loan programme manager for accepting our request to place the club into administration," they said in a statement., external
"Both the club and DCMS will continue to co-ordinate efforts to find a rescue for the club if there is any possibility of it being saved.
"The administrators will assess any rescue options for some or all of the business as and when offers are made, while ensuring public funds are protected."
Warriors have become the first Premiership club to go into administration since Richmond in 1999.
On Worcester's suspension RFU chief executive Bill Sweeney added: "We have had to take this action to protect everyone's best interests.
He added that the news was "incredibly difficult for fans, staff and players" and thanked them for working "tirelessly over recent weeks to enable matches to continue".
What happens next to Warriors is unclear but Sweeney hopes a buyer can be found as soon as possible, with the club potentially able to resume matches if the suspension is lifted.
"While it is the responsibility of each business owner to manage their individual finances, we will look at learnings from this situation to see what regulation can be put in place to provide all parties with more financial transparency," said Sweeney.
The ongoing Worcester saga
17 Aug - Worcester in dialogue with HMRC over unpaid tax bill
18 Sept - Worcester spirited in home defeat by Exeter Chiefs
22 Sept - MP Robin Walker asks DCMS to sanction administration
23 Sept - Worcester plight 'like death of a dog' - Steve Diamond
26 Sept - Club suspended by RFU and put into administration
Following Worcester's suspension, Premiership Rugby has confirmed their scheduled Premiership match at Gloucester will not now go ahead, adding it will "continue to support them where we can during this next phase".
The Cherry and Whites offered their support, tweeting:, external "Our thoughts are with the Worcester Warriors players, staff and supporters. We hope to see them return to the Premiership again soon."
Warriors are not the only club struggling financially, with fellow Midlands side Wasps announcing their intention to appoint administrators to "protect the club's interests".
"Wasps and the entire rugby family stands as one with all the players, staff and supporters of Worcester Warriors," the club tweeted,, external after Worcester's suspension was confirmed.
The club's failure to meet the RFU's deadline was not unexpected, with staff told in a letter to collect their belongings by 16:30 BST, when the gates to their Sixways stadium would be locked, with the club's insurance policy expiring at midnight.
With access to the stadium and its facilities no longer available, the players are now set to train on local pitches while their futures are sorted out. Stadium caretaker Lee Morrow and his wife have had to leave their flat above the West Stand.
Late payments, partial payments, £25m debt
Despite the two previous threats of suspension, Warriors staged their first two home games of the Premiership season as many staff worked for free, with capacity at Sixways reduced to 4,999 because of safety regulations.
Those that went on Saturday saw Warriors win an emotionally charged match 39-5, while the club's women's side - the University of Worcester Warriors - have won both their matches in the Allianz Cup.
Warriors' ban follows weeks of financial turmoil ever since they were served with a winding-up petition by His Majesty's Revenue & Customs over a £6m unpaid tax bill, with the club's total debts believed to be £25m.
Players were paid late and staff only partially paid their salaries for August, with others not receiving any at all.
Despite assurances from the owners, the rest of those salaries - 35% - went unpaid and no official confirmation ever followed their announcement of an agreement to sell the club nearly two weeks ago.
The owners had rejected previous calls from local MPs to put the club into administration, prompting Worcester MP Robin Walker to ask DCMS in parliament last week to sanction the move.
The closure of Sixways has also had a knock-on effect for non-league football club Worcester Raiders, who play their home matches at the stadium.
Kvesic 'confident' of resolution
Warriors flanker Matt Kvesic celebrated with fans after their win over Newcastle, in what may be their final game for some time
Speaking after news of Worcester's suspension, but before it was announced the club would go into administration, flanker Matt Kvesic told BBC Sport he was "confident" their financial troubles will be resolved.
"I'd be lying if I said I was surprised - I think it's [RFU suspension] something we knew was coming," said the four-time England international.
"We're rugby players, we want to play rugby, and to not have that opportunity is pretty tough.
"It's been quite emotional and draining at times but we've stuck together.
"I'm confident that when this is resolved - because I really am confident it will be - we'll be ready to go in that first game, whenever that is.
"None of us are experts on administration but it's looking like it's potentially the best thing for the club - obviously that has its pitfalls as well but for me, whatever the fastest solution is to get us back up and running as a functioning club, that should be the way forward."
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