Worcester Warriors: Atlas paid £2m for ex-Premiership club, confirm administrators
- Published
Worcester's Sixways home will be occupied by two sides in the 2023-24 season - Warriors Women in the Pro15s and non-league football side Worcester Raiders
Worcester Warriors were sold to new owners Atlas for £2.05m, according to a report released by the club's administrators Begbies Traynor.
Atlas, however, have yet to complete their purchase of Sixways stadium and the surrounding land.
Begbies Traynor have also confirmed that Atlas, co-owned by Jim O'Toole and James Sandford, are required to pay a further £1m by 9 October.
The sale of the club was agreed on 1 February before being completed in May.
But no financial information had been highlighted until Begbies Traynor issued this report, 10 months on from being appointed administrators.
They have sold the club's P-share back to the Premiership for £9.8m.
Atlas partners James Sandford (left) and Jim O'Toole became Worcester Warriors owners in February
The bulk of that money was used to pay off part of a large loan owed to the Department of Culture Media and Sport, following the Covid pandemic.
While secured creditors such as HM Revenue & Customs and the DCMS have received some of the money owed to them, Begbies Traynor say the club does not have enough assets to pay back unsecured creditors, including players and local businesses.
WRFC Trading Ltd, one of the companies run by previous co-owners Jason Whittingham and Colin Goldring. went into administration last September, before WRFC Players Ltd was wound up in the High Court in London a week later.
Begbies Traynor have confirmed the Atlas consortium bought Worcester Warriors as a company. including the purchase of Warriors equipment, its intellectual property and branding.
But while contracts have been exchanged, Atlas still has not bought the land and stadium at Sixways, which was not owned by WRFC Trading Limited - and the future of that remains unclear.
Jason Whittingham and Colin Goldring (right) first became Worcester Warriors directors in December 2018
Begbies Traynor are also seeking £1.8m as payment for their work to find the club a new owner and recover money owed to creditors, but their fee requires sign off from the government.
Atlas have a licence to use Sixways as their trading premises - and it will be occupied by two sides in the 2023-24 season - Warriors Women in the Pro15s, whose fixtures will be announced on Wednesday, and non-league football side Worcester Raiders.
But there will no mens rugby played there this season.
The Rugby Football Union have confirmed that there have been no applications from either Worcester Warriors or Wasps, who had been outlined as potential tenants, to play in their RFU league structure next season.
The administrators also say they have contacted former Warriors owners Goldring and Whittingham, who remain listed directors at Companies House, as part of an investigation into whether the club was owed more than £600,000 by an associated party.